Business Content, Opportunity, and Small Business Ideas, Businesses can privately own, not-for-profit or state-own. An example of an Online eCommerce industry is Google Searching Web and also Facebook Social Site.
While a mom-and-pop catering profession is a private enterprise. Every industry requires some form of investment and enough customers to whom its output can sale on a consistent basis in order to make a profit. An organization or economic system where goods and services stand exchanged for one another or for money.
A business (also known as an enterprise, a company, or a firm) is an organizational entity and legal entity made up of an association of people, be they natural, legal, or a mixture of both who share a common purpose and unite in order to focus.
Their various talents and organize, their collectively available skills or resources to achieve. Specific declared goals are involved in the provision of goods and services to consumers. A profession can also describe as an organization that provides goods and services for human needs.
Learn, Explain, What is NSE (National Stock Exchange)?
The National Stock Exchange of India Limited (NSE) was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices, and procedures. Also learned, Corporate Planning, Explain, What is NSE (National Stock Exchange)?
Image: #NSE (National Stock Exchange).
The National Stock Exchange of India Limited has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices, and trading volumes. The market today uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualization of stock exchange governance, screen-based trading, compression of settlement cycles, dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology.
The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.
The National Stock Exchange of India Limited’s mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the following objectives:
Establishing a nation-wide trading facility for equities, debt instruments, and hybrids,
Ensuring equal access to investors all over the country through an appropriate communication network,
Providing a fair, efficient and transparent securities market to investors using electronic trading systems,
Enabling shorter settlement cycles and book-entry settlements systems, and
Meeting the current international standards of securities markets.
The standards set by The National Stock Exchange of India Limited in terms of market practices and technologies have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. It’s that force which is guiding the industry towards new horizons and greater opportunities.
Till the advent of The National Stock Exchange of India Limited, an investor wanting to transact in a security not traded on the nearest exchange had to route orders through a series of correspondent brokers to the appropriate exchange. This resulted in a great deal of uncertainty and high transaction costs. One of the objectives of NSE was to provide a nationwide trading facility and to enable investors spread all over the country to have an equal access to NSE.
NSE has made it possible for an investor to access the same market and order book, irrespective of location, at the same price and at the same cost. NSE uses sophisticated telecommunication technology through which members can trade remotely from their offices located in any part of the country. NSE trading terminals are present in 363 cities and towns all over India.
The National Stock Exchange of India Limited has been promoted by leading financial institutions, banks, insurance companies and other financial intermediaries NSE is one of the first demutualized stock exchanges in the country, where the ownership and management of the Exchange is completely divorced from the right to trade on it. Though the impetus for its establishment came from policymakers in the country, it has been set up as a public limited company, owned by the leading institutional investors in the country.
From day one, NSE has adopted the form of a demutualized exchange – the ownership, management, and trading is in the hands of three different sets of people. NSE is owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries and is managed by professionals, who do not directly or indirectly trade on the Exchange. This has completely eliminated any conflict of interest and helped NSE in aggressively pursuing policies and practices within a public interest framework.
The NSE model, however, does not preclude, but in fact accommodates involvement, support, and contribution of trading members in a variety of ways. Its Board comprises of senior executives from promoter institutions, eminent professionals in the fields of law, economics, accountancy, finance, taxation, etc, public representatives, nominees of SEBI and one full-time executive of the Exchange.
While the Board deals with broad policy issues, decisions relating to market operations are delegated by the Board to various committees constituted by it. Such committees include representatives from trading members, professionals, the public and the management. The day-to-day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff.
The National Stock Exchange replaced open outcry system, i.e. floor trading with the screen based automated system. Earlier, the price information can be accessed only by few people but now information can be seen by the people even in a remote location. The paper-based settlement system was replaced by electronic screen-based system and settlement of trade transactions was done on time. NSE also created National Securities Depository Limited (NSDL) which permitted investors to hold and manage their shares and bonds electronically through a demat account.
An investor can hold and trade in even one share. Now, the physical handling of securities eliminated so the chances of damage or misplacing of securities reduced to the minimum and to hold the equities become more convenient. The National Security Depository Limited’s electronically security handling, convenience, transparency, low transaction prices and efficiency in trade which is affected by NSE, has enhanced the reach of Indian stock market to domestic as well as international investors.
#Promoters of National Stock Exchange of India (NSE):
Following financial institutions were the promoters of National Stock Exchange :
Industrial Development Bank of India(IDBI).
Industrial Finance Corporation of India(IFCI).
Industrial Credit and Investment Corporation of India(ICICI).
Life Insurance Corporation of India(LIC).
General Insurance Corporation of India(GIC).
SBI Capital Markets Limited.
Stock Holding Corporation of India Limited.
Infrastructure Leasing and Financial Services Limited.
#Market Segments of National Stock Exchange of India (NSE):
The National Stock Exchange of India Limited was intended to establish a viable and vibrant debt market which was in an underdeveloped stage. Now, it provides the traditional retail market for securities and also operates a Wholesale Debt Market (which may be termed as money market segment).
The NSE consists of three mutually exclusive segments :
Wholesale debt market segment, started operations in June 1994.
The capital market segment started operations in November 1994, and
Derivatives (Futures and Options) Trading, started operations in June 2000.
The Wholesale Debt Market segment of The National Stock Exchange of India Limited is a facility for institutions including subsidiaries of banks engaged in financial services and corporate bodies including companies to enter into high value transactions in instruments such as Public Sector Undertakings (PSUs) bonds, Treasury Bills (T-BilIs), Governments Securities, Units of UTI, Commercial Papers (CPs), Certificate of Deposits (CDs), Floating yields bonds, etc. Members of the Wholesale Debt Market segment can trade on their own behalf and on behalf of their clients. NSE trading system facilitates making two ways quotes in a highly flexible manner.
The Capital Market segment covers trading in equities and retail trade in the convertible or non-convertible debentures and hybrids. This particular segment comprises the securities of medium and large companies with nation-wide investors base. These will also include securities which are being traded on their stock exchanges. By virtue of equal access nationwide, such securities can be traded at the same price from any part of the country. This provides good trading and investment opportunities, increases the volume of the trade and increases the liquidity considerably.
Besides the capital market segment, The National Stock Exchange of India Limited also provides the opportunity to the investors to deal in the derivative products, i.e., futures and options. At present, NSE provides facility to trade in Nifty Futures, Nifty Options, Individual Stock Options and Individual Stock Futures.
Learn and Analysis, Discuss Case Study for “Power of Dreams” Campaign by Honda!
In 2002 Honda Motor Company was the number-three Japanese automobile manufacturer in the world, behind Toyota and Nissan. While Honda’s automobile sales in Japan and the United States were considered strong, sales in the United Kingdom and mainland Europe were thought to be weak, even though automobile production in the United Kingdom had been ongoing for a decade. Further, Honda vehicle sales had been declining in these regions since 1998. In response to these problems, Honda hired ad agency Wieden+Kennedy London office to create an advertising campaign that would directly address the issues. Also learned, Case Study for The Magic of Ford, Discuss Case Study for “Power of Dreams” Campaign by Honda!
‘‘The Power of Dreams,’’ released in 2002, was an omnipresent campaign in the United Kingdom and beyond, using television, direct mail, radio, posters, press, interactive television, cinema, magazines, motor shows, press launches, dealerships, postcards, beermats (coasters), and even traffic cones. It built upon Honda’s company slogan, ‘‘Yume No Chikara,’’ which was first endorsed in the 1940s by the company’s founder, Soichiro Honda. Translated into English, it meant to ‘‘see’’ one’s dreams.
Image: #Honda a Poster of “Power of Dreams”
Wieden+Kennedy used this phrase as the basis of its question to consumers: ‘‘Do you believe in the power of dreams?’’ The global campaign, which centered on this tagline, included print and television components starring ASIMO, a humanoid robot developed by Honda. While the ASIMO ads gained widespread recognition, the 2003 television commercial called ‘‘Cog’’ was clearly a pinnacle of the campaign. In a single take with no special effects, more than 85 individual parts of the new Accord interacted in a complicated chain reaction.
The spot won 37 advertising awards. Honda considered ‘‘The Power of Dreams’’ an advertising success. Worldwide sales of Honda vehicles rose dramatically from 2002 through 2005, from 2.6 million units per year to 3.2 million units per year. In the United Kingdom sales improved by 28 percent. In Europe sales in 2002 increased from 170,000 to 196,000, which rose to 217,000 in 2003. The campaign also won IPA Advertising Effectiveness awards, British Television Advertising Awards, and even a 2003 Gold Lion at the Cannes International Advertising Festival.
#Historical Context of Power of Dreams Campaign:
In April 1964 Honda spent $300,000 to sponsor the Academy Awards, becoming the first foreign corporate sponsor in the event’s history. With the tagline ‘‘You Meet the Nicest People on a Honda,’’ the Honda advertising campaign was a success, becoming one of the best-remembered advertising campaigns in the company’s history. Nevertheless, although the campaign promoted Honda’s motorcycles well, it did little to sell Honda vehicles. The reality was that Honda was better known for its motorcycles than it was for its cars. This long remained the case in most of the countries where Hondas were sold. In Japan, where big-splash promotional efforts for Honda’s cars were common, the problem was not so severe.
The 1981 campaign to promote Honda’s model the City, for one, was omnipresent in Japan, incorporating large-scale TV, radio, and print advertising. There was even a variety of City novelty goods for sale and a specialty magazine called City Press. Meanwhile, in the United Kingdom, Honda automobile production had yet to begin. Honda cars had been available there as imports, but not enough units were ordered to establish a presence. Further, the prices of imported cars could not compete with that of vehicles manufactured within the country. Thus, at the time, any sales push in the area focused on Honda motorbikes.
In 1992, when Honda automobile production began in the United Kingdom, the shift toward promoting Honda automobiles there began, albeit slowly. But the potential market for the new manufacturing plant was huge: located in Swindon, England, it was responsible for producing vehicles well beyond the United Kingdom, including mainland Europe, the Middle East, and Africa. As such, Honda felt the need to begin a major campaign within the United Kingdom. Eventually it happened.
‘‘The Power of Dreams’’ replaced the 1999 global tagline ‘‘Do You Have a Honda?’’ This earlier campaign employed print, radio, and television, and portrayed the dreams of Honda’s founder, Soichiro Honda, who envisioned providing the world with all the possible means of travel. Soichiro Honda himself had repaired and created bicycles and motorcycles as well as both road cars and racing vehicles. The ‘‘Do You Have a Honda?’’ ads thus incorporated images of all of these means of transportation as well as more creative means, including a hot-air balloon and a cable car.
Although the ‘‘Do You Have a Honda?’’ ads spread worldwide, the United Kingdom was barely affected by the campaign. From 1998 to 1999 Honda automobile sales in Europe dropped from 240,000 to 235,000. The decline continued through 2002. In the United Kingdom, Honda auto sales began to drop in 2000. In 2002 ‘‘Do You Have a Honda?’’ was replaced with the campaign ‘‘The Power of Dreams.’’ Although the tagline was part of a larger global focus, the campaign, under the leadership of ad agency Wieden+Kennedy in London, centered on promotional efforts within the United Kingdom.
#Target Market of Power of Dreams Campaign:
‘‘The Power of Dreams’’ targeted a large and diverse audience. While Honda wished to attract younger buyers, they were not the company’s only focus. With a wide range of car models, from the lower-priced Civic to the higher-end Accord, Honda could potentially appeal to drivers within all age groups and socioeconomic statuses. All potential new buyers, whatever their age, represented Honda’s target market.
Thus, of the many different media that ‘‘The Power of Dreams’’ employed, television advertising, with its ability to reach a wide audience, was expected to be the most effective. Further, by portraying Hondas as hip and fun, the commercials appealed to a broad range of potential buyers. Honda’s new campaign mainly focused on raising public awareness of its cars—especially in Europe and the United Kingdom, where Honda was largely associated with motorcycles—and, in particular, getting new customers to visit Honda showrooms. There was also an emphasis on pleasing return customers. The company wished to improve communications with Honda owners and thus make them feel good about their choice of Honda; this, in turn, would convince them to buy a Honda the next time around.
“This Honda Power of Dreams campaign is our personal way of sharing who we are and what we stand for,” said Barbara Ponce, manager of corporate advertising for American Honda Motor Co., Inc. “But, we’re not simply talking about Honda, we’re letting our actions, our products, and our dreams speak for us. The home video format keeps it real, and at the same time opens new doors and perspectives that customers can discover for themselves at dreams.honda.com.”
Learn and Analysis, Discuss Case Study for The Magic of Ford!
In 1903, in a small wagon shop in Dearborn Michigan, a man by the name of Henry Ford started what is today the Ford Motor Company. It started it in 1896 when Henry Ford built his first car. It was only experimental at the time, but less than ten years later in 1908, he introduced a more updated version to the public. This became known as the Ford Model t. Once people realized what a wonderful novelty this was and how it would greatly facilitate their lives, there was a huge demand for them. In order for the company to be able to satisfy this heavy demand, Ford introduced the world’s first assembly line for cars. It revolutionized the industry. Also learned, Case Study for BMW’s “The Hire” Ad Film Campaign! Discuss Case Study for The Magic of Ford!
By 1923 more than half of America’s vehicles were made by Ford. Today, the Ford Motor companies the number two company in its industry as well as the number two industrial corporation in the world. When the average person thinks of the Ford Company, they think of just Ford. This thinking, however, is incorrect. Ford is divided into four major components, automotive, Ford credit, Visteon, and Hertz. Ford also produces vehicles under the names of Aston Martin, Ford, Jaguar, Lincoln and the Mercury and Volvo brands.
Image: #Ford Company Logo
Recently, Ford profits have increased significantly, for the nine months ending 30/09/06; total revenues increased 9% to 127.48 billion dollars. Net income from continuing operations decreased 10% to $4.32 billion dollars. Results reflect increased vehicle sales offset by higher warranty and costs related to the Firestone recall. Last year’s total sales went up 13% to become 163 billion dollars and profit also rose 10% to become $7.2 billion dollars. As far as Ford Motor Company can remember, this is more than any other car company ever. Ford’s main automotive competitors are General Motors, DaimlerChrysler, Toyota, Honda, Nissan, and Volkswagen.
Their Three Questions maybe very helpful study these discussions:
Q1. Assess the reasons for the growth of the Ford Company.
Q2. Interpolate from the case the clout that the company has in the world economy.
Q3. Assess from the consumer’s perspective the performance of the company’s product.
One of the ways that ford has established its spot as the number two company in the automotive market is its focus on customer satisfaction. Ford Motor Company admits that its greatest asset is the trust and confidence earned from its consumers. When people see a Ford trademark, Ford wants them to associate that with a trust mask of certitude, quality, the reliability of performance and value. Ford strives to connect with their customers as well as reach them. They try to use relationship marketing because it is cheaper to keep an old customer rather than to attract new ones.
William Clay Ford, Chairman of the Board for Ford Motor Company says that satisfying customers goes beyond great products and services. People want to do business with companies who care about them and their environment. He realizes that the best cars are socially and environmentally responsible. Chief Executive Officer, Jacques A. Nasser states, “we will be a leader in corporate citizenship if we are a well-trusted company that people believe contributes positively to a society and uses its resources to create a more sustainable world.”
Jim Vannier, Manager of Ford’s advertising and marketing programs admits “if you listen to your customer, if you provide the right product at the right time, you’ll get the numbers”. The above quotes make it quite obvious that the top executives of the company all concur that customer satisfaction is of the utmost importance in succeeding. If they keep the customer happy, the customer will tell the others they are satisfied, and more and more people will be willing to consume their product.
#Here and Now:
The twentieth century was profoundly affected by the innovations of Henry Ford. The inventions of the automobile gave opportunities to multitudes of people. These opportunities were not just in transportation, but in occupation as well. Today, no matter where a Ford is produced, the consumer knows that they are receiving a high-quality product. The reason for this is that the majority of Ford vehicles parts are designed by Ford engineers, manufactured in Ford plants and assembled in Ford product lines. When you purchase a Ford product, you are truly purchasing Ford quality. Ford is the number two manufacturer of automobiles, second only to the General Motors Corporation.
This case highlights certain strategies of this corporation that propelled it to its current number two spot in the market. There are many aspects of marketing strategies that will be discussed in this case such as, product strategies, promotion strategies, pricing strategies as well as internet marketing and other forms of product distribution. Each one of these strategies plays a key role in the success of the number two motor company in the automotive industry. Many people tend not to realize just how important the marketing of a new product can be.
It plays a huge role in the success or failure of the new product. For example, many people may remember many years ago when Ford came out with a new vehicle called Edsel. The Edsel became known as one of the Ford Motor Company’s lemon. Although the thought of such an odd-looking car does not sound appealing, it is said that the look is not what caused its downfall. Surprising as it may sound, the demise of this vehicle was due to poor marketing strategies. Ford’s biggest mistake in marketing the Edsel was their failure to decide on their target market. They tried to market their product to everyone, and with such a large span of people, this was next to impossible for becoming a success.
#The objective of the Company:
The mission of the Ford Motor Company is very basic. Ford sees their customers as one of the most important things; they know their customer satisfaction also plays a gigantic role in their success. “[their] mission is to improve continually [their] products and services to meet [their] consumer’s needs, allowing [them] to prosper as a business and to provide a reasonable return for [their] stockholders, the owners of the business. Their mission shows their devotion to constantly improve and while improving, accommodate their customer’s needs.
Ford’s five main Principals include,
1) Quality: they put the quality of their products first and foremost. Without a quality product, people have no desire to waste their money or jeopardise their safety.
2) Customer Care: if you don’t take care of the Customer, someone else will.
3) Constant Improvement: if the Ford Motor Company allowed themselves to remain stagnant in their environment, their competition would eventually have a huge advantage over them, because they would have newer and better product lines to offer.
4) Employee Involvement: Ford wants each and every employee to be involved in their company. The happier the employee, the better they work. It is all about feeling that they are a part of the Ford team. They also want their employee to think like a consumer, they can cater more to the needs of their actual consumers because they will know what the consumers want.
5) They consider dealers and suppliers to be their partners: without the dealers and suppliers Ford would not be able to manufacture the things they need alone and therefore would not be able to produce as many vehicles as there would be a demand for or even be able to distribute them all to people.
#The Arena:
Ford has many competitors. Since Ford is ranked as the number two companies, its main competitor is quite obviously the number one company, General Motors Corporation. General Motors, also an American Company holds 29.4% of the automotive market share while following close behind them the Ford Motor Corporation holds 25.1% of the top 5 best selling cars in 1999, Ford Taurus appears as number three and Ford Escort appears as number five in a recent survey. The automotive industry has fierce rivalry among its competitors. In the past years, the following mergers have occurred- Daimler Benz acquired Chrysler and Ford bought Volvo in order to be able to properly compete with General Motors, this way Ford is not allowing General Motors to become too much larger than they already are. If General Motors develops a new feature or the automobile, Ford must be right behind them with their most innovative invention, and vice-versa.
Ford has 25.1% of the market share presently. This is quite impressive considering that the number one automotive company, General Motors, also an American company has 29.4%. This means that the top two companies hold more than 50% of the market share. This is quite extraordinary. The total market value of the Ford Motor Company is approximately $56 Billion Dollars and their profits are well over $7 Billion. In 2005 Ford sales raised up to $163 billion dollars. This was a thirteen-percent increase from the previous year.
#The Catch:
A car, if not properly assembled, maintained, and operated can become a deadly weapon. The United States government regulates many aspects of the automotive industry. Among these regulations are seatbelts, airbags, and shatterproof windshields. The government has also made inspection and maintenance programs more expanded, in order to include more areas and allow for more stringent tests. In 1990 the government amended the Clean Air Act. The main focus of the act was to cut down on all the urban smog, carbon monoxide and particular emissions from Diesel engines and to help decrease acid rain and toxins that motor vehicles contribute to.
The amended act demands that polluted cities must sell improved gasoline that helps to reduce ozone-forming Hydrocarbons and Carbon Monoxide. Once inside an automobile, the operator of the vehicle is responsible for obeying many regulations as well. It has become extremely important, for instance, to wear your seat belt. Primary enforcement seat belt laws allow police to stop and ticket a driver for not wearing a seatbelt, just like any other traffic violation. Seventeen states and the District of Columbia have enacted these laws.
The remaining 32 states have secondary laws that allow law enforcement to ticket a driver for not belting up only after the person has been stopped, or ticketed, for another violation, and one state does not have any seat belt law. Obviously, safety belt laws work, and the public overwhelmingly supports them. Three out of four Americans support safety belt laws, according to a recent public opinion survey. Stronger safety belt and child passenger safety laws, and stepped up enforcement of those laws, are the most effective steps we can take to save lives.
#Corporate Responsibility Towards Society:
Ford Motor Company sponsors many programs to better the community and their safety. For example in the Detroit area, ford organized a weekend clinic in which the automotive safety office educated fifty-five people and their children on the proper use and installation of child safety seats. They demonstrated this in the consumer’s actual vehicles. Ford is also committed to environmental cleanliness. They sponsor programs to educate our children on environmental cleanliness and responsibility.
They also sponsor company-wide recycling, cleaner operating vehicles, recyclable components, cleaner manufacturing, and employee involvement in environmental activities. Ford does not do these things because they have to, they do it because it is the right thing to do. The Ford Motor Company not only is social action but culturally as well. Ford provides financial support at many historically black colleges such as Tuskegee University in Alabama, this is where the famous black inventor George Washington Carver performed many of his experiments. Ford Motor Company, as of 1999 has 23.2 percent of its employees as minorities. This is up 1% from 1998. Diversity makes the business world go round and no one knows this better than the Ford Motor Company.
#Innovation or Death:
The Ford Motor Company values their product Analysts. [Their analysts develop product cycle plans that help forecasters determine [their] approach to different markets. The people who start the product cycle are called the research, Design Packaging and Financial Analysts. The researchers find out what type of things that consumers would like their vehicles to be occupied with. The Design packages are the people who decide the most appealing way to package the final product. The financial analysts put the numbers together to figure out exactly how much money all if the above will cost. Next, designers and engineers along with testers actually create the vehicles. They create vehicles according to the specifications of the Research, Design Packaging and Financial Analysts. This way they are producing what the market wants.
The research and Advanced technology Teams then decide which technologies should be used in the new products. Ford is constantly trying to improve their product development and expand their innovations. Currently, Ford is working on a new line of intelligent vehicles. These vehicles will enable the driver, through voice activation, to connect to the internet. The voice activation will also be implemented into the navigation system, heating and air-conditioning, cell phones, audio systems, and other electronic things inside the automobile. Ford is adapting to each change in order to be able to bring their customers the most innovative and convenient products possible. As soon as the new technology becomes available, Ford Motor Company is among the first few to try to implement it into their vehicles.
#Product Targeting:
Ford motor company has different types of cars, which are each targeted towards many different markets of people. As the company learned the hard way with the Edsel, the importance of a target market is extremely high. Loss of a target marketing focus usually means the loss in sales. Ford has a different car targeted towards different age groups, personalities, genders and economic standing and more. The Ford Mustang, for example, is targeted mainly at the middle-aged. This is exhibited by its slogan of it is what it was and more. This implies that the target consumer would be old enough to remember what the Mustang was when it first came out in the 1960’s.
Another example is ford trucks. Their slogan is “Built Ford Tough”. The toughness implies a target towards rugged men. Because of the fact that the word “tough” is used, it seems that it would be very unlikely that the ford motor company would be using that to attract women. When the word tough is thought of, women are generally not the first thing that comes to mind. The third and final example is the Ford Taurus. Its slogan is “ford makes it smart to buy American.” The target market for a Ford Taurus is a family. The Taurus station wagon, for instance, is a great family car with tons of room, yet it handles like a sports car. The above three examples are only a small sampling of what ford offers. Ford motor company manufactures sedans, SUVs, trucks, luxury cars and more. If you are looking for it, the odds are that ford will satisfy you.
#Product Mix:
The Ford Motor Company has such a wide selection of vehicles in order to satisfy every different type of potential consumer. They offer small cars, sports car, midsize cars, luxury cars, vehicles, convertibles, wagons, minivans, vans, trucks, commercial trucks, and even environmentally efficient cars. Each of Ford’s different types of vehicles have many different options that came along with them the 2001 Explorer for example, runs to roughly $25,715 dollars, without any extras. However, should the consumer decide that he or she would like to add perks, there would be many choices. For instance, in the convenience group of options, you can add anything from a cargo cover to speed control.
In the XLS sports group anything from chrome steel wheels to wheel moldings. There is even a trailer tow prep package, which includes a wiring harness and an H.D. Flasher for only $355 dollars extra. After that the consumer has the option to add even more options. They can customize the engine, transmission, drive, rear axle, wheel type, tire type, seat equipment and much more. The company also offers the Explorer in 10 different colours for the exterior. With the plethora of the above options, how could anyone not find what they are looking for? Each one of the 24 cars manufactured under the Ford name has many options as the Explorer, if not more.
#Services Offered:
When you own a Ford vehicle, you can register for Owner’s Services. This includes reminders of when your vehicle needs to service, tips for vehicle safety, maintenance information, does it yourself pointers and online manuals. It also includes warranty guides, offers, and discounts exclusive to people registered for the service, online shopping, private communications, and links to Ford Company Specialists. Ford, Lincoln, and Mercury dealerships specialize in the servicing of their own vehicles. The dealership is a wonderful place to go to have your breaks served, shocks replaced and batteries as well.
The company also offers Extended Service Plans(ESP). With the Extended Warranty Plan and the factory unlimited Warranty; you are able to choose a plan that suits your needs. The way the plan works is, you pay a small deductible anywhere from $0-$100. The Ford ESP cost protects the consumer from increasing prices in labor and increased prices in parts. Other services that are offered by Ford Motor Company area Customer Assistance Centres, Collision Assistance, Roadside Assistance, Technical Service Information and their website. The website includes links to safety tips and Frequently Asked Questions.
#Promotional Strategies:
The current promotions that are offered by the Ford Motor Company are Radiator Service, Brake service, and Batteries. All of the above promotions are wonderful for the upcoming winter months. The radiator service includes, top of all fluids and a free 12pt all weather check of hoses, clamps, belt and more. This promotion and all of the above promotions appeal to people who are thinking ahead to cold winter months. This winter in New York has been predicted to be one of the worst we have seen in a while. A radiator is not actually something you would want to break down in the middle of a snowstorm.
The battery promotion is offering a Motorcraft tested, though series battery. They are also offering a Silver Series Battery for only$20 dollars more. Each promotion for a new battery comes with over an 83-month warranty. It is a good idea to replace your battery before a new winter season. When it is freezing outside, trying to find a Good Samaritan who is willing to give you a jump is a rarity. The Brake Promotion comes with the Motorcraft brake service. This promotion includes replacement of brake pads or shoes, front or rear turn rotators and drums. This promotion will also check the brake’s hydraulic system and repair, if necessary. This once again appeals to the person(s) who is preparing for the harsh winter to come. Being that, a bad winter generally means a lot of snow and ice. With weather conditions like that, who needs to worry about brake failure?
#Pricing strategies:
One of ford’ pricing strategies is the fact that they try to help the consumer finance a Ford vehicle. Ford offers its consumer many plans to choose from in order to find the financing option that best fits their needs. The following are only a few of Ford’s financing options. The first is the Red Carpet Lease: the consumer is offered flexibility for payment; there are advance payment plans and Additional payment programs, depending on which one is best for you.
The second financing plan is mobility financing: mobility financing offers flexible and convenient financing terms for their physically challenged consumers who need adaptive equipment in their vehicles. The finance rate is based on your credit and the terms of the transaction. Ford credit has earned a top ranking place in the world of automotive finance by providing loans and leases that are convenient and affordable. They also specialize in services such as commercial lending and municipal financing.
The municipal financing is so convenient that it can be calculated on the internet. All that needs to be done in order to do this is, select a vehicle, model, make, and product line. The online calculator will give the consumer an estimated lease and retail payment. Ford financing company provides a verity of products and services to both, the dealers and the consumers. Ford credit also has a commercial lending operation, which caters to light truck fleets and heavy trucks. Ford wants to make it as easy as possible for the consumer to be able to drive a ford. There are so many different financing options that are offered, that finding a plan that is right for you has become easier than ever. If buying a new vehicle is not financially possible, then ford also offers a whole line of pre-owned vehicles, which are backed by Ford Motor Company with a 100 point inspection.
#Distribution internet marketing:
Ford’s newest web site for ford division cars and trucks is www.fordvehicles.com. the new website allows the prospective customer to compare ford vehicles to other cars made by other manufacturers. They are the first company to give consumers the option of product comparison. The section of product comparison on the website comes complete with photographs, feature description, safety options, competitive pricing, financing and warranty information. Ford division internet coordinator, Trisha Habucke states, “With our new design we incorporated new technologies that deliver more visually exciting content.” The website is so user-friendly that consumers can just go right from one ford vehicle to the next without any trouble. Ford is committed to bringing their customers total brand experience.
For example, Ford knows that people with certain types of personalities are attracted to certain types of cars. Explorer drivers, for example, are rugged, the “No Boundaries-ford outfitters” slogan appeals to them. When ford began their internet market, they did the most extensive research ever conducted by a car company. Their advertising agency, J.Walter Thomson found that 210 test participants concurred that the Ford website deserved a high rating for its complete content. Ford attributes a fair amount of the success to the internet. The internet is a way reach millions of people. The company realizes that is has been a powerful tool is the internet. Erin Hughes, who is a ford employee since 1999, admits that her greatest tool is the internet. Erin’s Regional Manager realized that if they had one person whose sole job was to be dedicated to the internet, the company would prosper.
Erin later became the first internet customer satisfaction coordinator. In addition, Hughes started the first internet club for Ford dealers. Since the position of internet coordinator so now more common at ford motor companies, once per month all of the internets coordinators get together to share their most recent e-commerce news and best practices. Hughes says “my job is to provide our dealers with the resources and technology needed to help them sell more vehicles on Main Street and E-street”.
Advertising also plays a large role in the distribution of ford motor company’s products. Ford advertises on television quite often and also on the radio. Previous slogans that ford had etched in everyone’s minds include things like “Have you Driven a Ford Lately?” with a catchy little tune along with it. Ford also has their slogans and products photographs on major highway billboards across the county as well as scoreboards at sporting events such as during commercial breaks where the broadcaster will say something along the lines of sponsored by Ford Motor Company.
The Ford motor company has come a very long way since Henry Ford first established it. They went from a little wagon shop to the second leader in automotive sales. They have been around for almost a century. Ford has elaborative marketing strategies as well as distribution strategies. Their website was extremely easy and fun to use. Ford is also a very well rounded company in that they are very environmentally concerned. It is nice to see that people realized, if we don’t save our planet now there will be nothing left for future generations. With Ford’s experience and high understanding of, and ambition for the satisfaction of the customer, can they someday be the number one automobile company, beating out the General Motor Corporation?
Learn and Analysis, Discuss Case Study for BMW “The Hire” Ad Film Campaign!
BMW (Bayerische Motoren Werke Aktiengesellschaft) is one of the world’s leading luxury carmakers. Founded and based in Germany, BMW group employed over 100,000 people, making and distributing a series of successful, premium-priced passenger cars and motorcycles. In addition to its manufacturing operations, BMW also provides financial services to support its worldwide sales and distribution of cars and motorcycles. The Case Study Reference by Encyclopedia of Major Marketing Campaigns. -Thomas Riggs. Also Learned, What is the Concept of Corporate Planning? Discuss Case Study for BMW’s “The Hire” Ad Film Campaign!
Image: #BMW Logo.
BMW was initially established to build aero engines during the First World War. By 1945, the company was still country’s leading aero engine manufacturer. But by 1928, BMW has also started making cars, when it got the license. It was later when BMW became one of the biggest automobiles makers in Germany. But after the Second World War, the company was laid into ruins. The demand for aero engines subsequently disappeared. Its factories and other capital equipment, which were located in the area now controlled by Soviets, were under serious threat. At this point of time company was not sure about its future and started concentrating on automobiles production. But in 1959, the company went into financial turmoil, when it faced bankruptcy. In this hard time, the company found a savior in the face of Herbert Quandt, who emerged as a powerful shareholder by taking over the 50% share of the company. In BMW group’s history, the turning point was in 1961, when it launched BMW 1500, which soon got BMW brand, the reputation of an excellent engineering company. Now a day, BMW enjoys the ownership of three quality brands, BMW, MINI and Rolls-Royce motor cars.
In 2000 BMW posted total sales of $33 billion, a slight decrease from its 1999 earnings of $34 billion. Afraid of further backsliding, the Bavarian automaker decided to reshape its advertising to better target the Internet-savvy BMW customer. Before 2001 the company’s advertisements had typically consisted of product-driven campaigns with immaculate BMWs clinging to mountain roads. BMW asked its longtime advertising partner, Fallon Worldwide, to create something different. In 2001 five action-packed short films emerged under the campaign title ‘‘The Hire,’’ which became one of the most acclaimed campaigns in advertising history.
Three different BMW/Fallon campaigns preceding ‘‘The Hire’’ had mostly consisted of ‘‘hard-driving, product-focused efforts designed to show what it’s like behind the wheel of a BMW,’’ Jim McDowell, vice president of marketing at BMW North America, told Advertising Age. BMW and Fallon felt their campaigns’ flavor had been so overused by competitors that the original uniqueness had washed out. Wanting to launch a more unprecedented campaign, BMW asked Fallon for something new, but Fallon’s creatives felt confined within the restraints of traditional television spots. They wanted to show BMWs for longer periods of time and to truly push BMW’s performance to the point of damaging the car, which was something unheard of for a car commercial.
‘‘In response to our plea,’’ Bildsten said in an interview with Shoot, ‘‘[BMW] sent us this letter that was just amazing. They were telling us, ‘Take off the gloves. Do whatever you want. We want you to really stretch.’ ’’ After finishing a Timex campaign that included the use of video clips in Internet advertising, David Carter and Joe Sweet, two of Fallon’s art directors, were eager to try different filming techniques. ‘‘One night I challenged [Carter and Sweet] to come up with something cinematic,’’ Bildsten told Brandweek. ‘‘They came back the next morning with the whole idea almost completely worked out.’’ When they took it to BMW, ‘‘it took us about 30 minutes to present and 10 seconds for them to give us a green light.’’
After working with BMW to develop the idea of a James Bond-type hero who drove various BMWs, Fallon enlisted David Fincher’s film-production company, Anonymous Content. Fincher then successfully wrangled some of Hollywood’s biggest guns to create the five short films. Three more films were created in 2002 to promote BMW’s new Z4 roadster. All eight starred Clive Owen as the ‘‘hired’’ driver who found himself driving a BMW in every spot. ‘‘The Hire’’ was promoted much like a feature film would have been, with movie trailers, print ads, and Web ads.
Short subplots, which loosely linked the campaign’s first five storylines, were filmed quickly, and with a digital video camera, by Ben Younger and Director of Photography William Rexer. The filming of one scene, which looked like a real-life occurrence to most onlookers, involved a ‘‘car thief’’ slamming a ‘‘hit man’’ onto a car hood in New York. ‘‘Some of the reactions I got from people who weren’t real extras were so good that we had to hunt people down [to get permission to include them in the films],’’ Younger said in an interview with Shoot magazine. ‘‘I loved the reaction of one armored-car guy, so we paused the frame, took down the name on the side of the truck, and called the company to get a waiver from him.’’
Image: #BMW Ad Films Poster.
Since its launch “The Hire” has been singled out as the first high profile, big-budget, celebrity-laden Internet marriage of advertising and entertainment. It has been reviewed, scrutinized, deconstructed and cited as evidence of the perilous future for traditional advertising. New York Times film critic (Elvis Mitchell) called the series “a marriage of commerce and creativity, straddling the ever-dwindling line between arts and merchandising.” BMWFilms is simply the latest and possibly the hippest Web site to make use of streaming video in order to lure prospective customers. Fast cars, mysterious passengers, Buddhist monks, rock superstars, and sinister enemies are all part of the film series, which are presented in installments by some of Hollywood’s top directors. These films are being advertised on television the same way that movie trailers are advertised; the difference is that instead of the catchphrase “coming soon to a theater near you,” this catchphrase reads “see it only on BMWFilms.com.”
The five initial films cost an estimated $15 million, and the three made in 2002 cost about $10 million. ‘‘The Hire’’ catapulted BMW’s exposure into film festivals, awards shows, and even an exclusive BMW DirecTV channel. By 2002 BMW sales were up 17 percent, while some of its competitors, such as Volkswagen and General Motors, floundered. By June 2003 more than 45 million people had viewed the films, overshooting the original goal of reaching 2 million viewers. ‘‘The Hire’’ garnered numerous ad industry awards. The campaign’s final spot, ‘‘Beat the Devil,’’ aired November 21, 2002.
#Advertising Strategy:
Initially, Fallon and BMW had decided to film one serialized 45-to-60-minute film featuring a suave hero who saved, kidnapped, and escorted people using different BMW models. Fallon approached production company Anonymous Content, headed by David Fincher (director of Se7en and Fight Club), to produce the film. Fincher recommended that the spots be broken into five different films in order to facilitate file downloading and allow more flexibility in attracting talent to work on the project.
Following Fincher’s advice, Fallon developed scripts for five short films. In producing ‘‘The Hire,’’ Fincher and Fallon went so far as to create a dossier, complete with FBI and CIA files, just to flesh out the films’ hero. Fincher then solicited some of Hollywood’s top directors. The final list included Ang Lee (Crouching Tiger, Hidden Dragon), John Frankenheimer (The Manchurian Candidate), Wong Kar-Wai (Chungking Express), Guy Ritchie (Snatch), and Alejandro González Iñárritu (Amores Perros). The scripts, ranging from dark to hilarious, were distributed according to each director’s style. Anonymous Content chairman Steve Golin told Shoot, ‘‘The good news is that these weren’t commercials. We had very few restrictions. The budgets were equivalent to [those of] high-end commercials.’’
Fallon flipped the advertising equation upside down by spending 90 percent of its budget on production and only 10 percent on media. The reduced media expenditure was initially seen as a huge risk. According to Advertising Age’s Creativity, a BMW rep warned Fallon, ‘‘Either nobody will notice, or this will be a smashing success.’’
For each of the six-to-seven-minute films, subplots were also created in an attempt to weave the film storylines together. British actor Clive Owen, whose character became the common thread for the entire campaign, always played the skillful hired driver. Frankenheimer’s ‘‘Ambush,’’ the campaign’s debut film, first became available for download on BMWfilms on April 26, 2001. It featured the hired driver saving a diamond smuggler from machine-gun toting assailants in a cargo van. Fallon released each of the following four spots every two weeks. Typical Hollywood methods, including broadcast spots, billboards, and free posters, were used to promote the films. Print ads ran in Hollywood trade magazines Vanity Fair, Entertainment Weekly, and Rolling Stone.
The trailers for ‘‘The Hire,’’ resembling regular movie trailers, aired on VH1, Bravo, and the Independent Film Channel. One of Fallon’s biggest challenges was to pitch the films as entertainment but to still disclose BMW’s involvement. ‘‘We wanted to avoid the ‘microbrew syndrome,’’’ Bildsten explained to Brandweek, ‘‘like where you look down and see that [your beer] was actually made by Anheuser-Busch.’’ ‘‘The Hire’’ was also uniquely filmed to fit computer screens. ‘‘No one had ever done an internet project of this magnitude, and we had a lot to learn,’’ Fallon producer Robyn Boardman told Advertising Age’s Creativity. ‘‘There are different things to keep in mind when shooting for the web. File size, for starters, and the fact that wide shots don’t play well.’’
Due to overwhelming Web traffic, ad-industry praise, and BMW’s bottom-line success in 2002, a ‘‘second season’’ consisting of three films began airing October 24, 2002. The second crop involved an equally renowned roster of names. Instead of Anonymous Content, all spots were produced by Ridley Scott (director of Blade Runner and Gladiator), who recruited directors Tony Scott (Top Gun), John Woo (Face/Off ), and Joe Carnahan (Narc). The actors included Gary Oldman, James Brown, Don Cheadle, Ray Liotta, and of course, Clive Owen, returning to star in the final three films. The last of the films was released at the end of 2002.
#Target Audience:
‘‘The Hire’’ largely arose from Fallon and BMW’s growing concern that past campaigns had been missing the company’s target audience: well-to-do, high-achieving males who usually researched purchases using the Internet and lacked the time to watch network television. Research showed that consumers inclined to purchase BMWs were also broadband-connected, tech-savvy males and that 85 percent of this population studied BMW’s cars online before even stepping into a showroom. As far as whom the campaign would appeal to, McDowell explained to Advertising Age, ‘‘We would have guessed that our central tendency would have been 25-year-olds, but actually, from our early measurements we got people older and more affluent than that.’’
Knowing that the mature target audience was keener on the viewing experience than on the interactive experience, Fallon purposely avoided using gaming software on the campaign’s website. To study the effectiveness of ‘‘The Hire,’’ BMW and Fallon devised units of measurement called ‘‘BMW minutes,’’ which calculated how much time viewers spent with the new Internet campaign compared to previous television campaigns. ‘‘We were astonished to discover that a major fraction of the total BMW minutes were Internet minutes,’’ McDowell told Advertising Age. Males made up 68 percent of the viewers, 42 percent of whom came from households with incomes greater than $75,000. The second suite of ‘‘The Hire’’ films featured BMW’s new Z4 roadster, which aimed at a demographic that could hopefully afford them. In late 2002 BMW began running its eight films on an exclusive BMW channel for DirecTV. The channel, which was available for a limited time, interspersed the films with behind-the-scenes footage and special ‘‘subplot’’ spots.
#Competition:
Mercedes-Benz, the German luxury arm of Daimler Chrysler, was the top-selling luxury brand in the United States in 1999, a position it maintained until losing ground to BMW and to Toyota’s Lexus in 2002. For the same year’s first 10 months Mercedes units sold dropped by 1,500, losing out to BMW’s incredible 17 percent sales growth that year. ‘‘Mercedes has been improving its quality but it hasn’t been keeping pace with the rest of the U.S. industry,’’ Brian Walters, director of quality research at J.D. Power and Associates, explained to Bloomberg News. In an attempt to reproduce BMW’s campaign success, Mercedes’s London-based ad agency, Campbell Doyle Dye, faked a movie trailer for a supposed upcoming film called Lucky Star. Never admit to being just an advertisement, the movie ‘‘trailer’’ broke in U.K. movie theaters July 4, 2002. Lucky Star pretended to be the next release from producer Michael Mann (The Aviator, Collateral) and portrayed Benicio Del Toro as a man acting independently to clean up Chicago’s commodities exchange. The spot periodically showed Del Toro masterfully speeding through Chicago in a $90,000 Mercedes 500 SL.
Toyota Motor Corp’s Lexus luxury division rose up to be the luxury-car industry leader, selling more units than BMW or Mercedes in 2001. Besides the sales success, Lexus dominated as the most reliable in its industry; according to J.D. Power and Associates, Lexus cars had fewer than half of the problems, after four and five years, that the average cars and trucks had. In 2001 Lexus decreased its ad spending. By 2002 the carmaker’s ad agency, California-based Team One Advertising, had focused its efforts on the remodeled ES300 sedan.
#The outcome of Ad Campaign:
‘‘The Hire’’ raked in a plethora of advertising awards, including two Grand Clio Awards and a Grand Prix Cyber Lion at the International Advertising Festival in Cannes, France, along with Best of Show at the One Show Interactive competition. The campaign was praised not just by the ad industry; it earned kudos within the entertainment arena as well. ‘‘Hostage,’’ from the second series of films, earned the award for Best Action Short during the Los Angeles International Short Film Festival in 2002. Entertainment magazines began reviewing the films.
Even the New York Times gave the films a favorable review. Their entertainment value garnered media coverage not accessible to the typical advertisement. ‘‘We’d hoped for a good response, but we never thought it would be as strong as it was,’’ Bildsten told Shoot in 2001. ‘‘BMW recorded over eleven million film-views. And according to their research, it really worked. [The films] got people to not just pay attention, but to buy cars.’’ By June 2003 the films had been viewed more than 45 million times. BMW’s sales rose 17.2 percent between 2001 and 2002, helping the automaker to outsell Mercedes and placing it second only to Lexus in the luxury-car market. From an ad industry perspective, the greatest pinnacle of ‘‘The Hire’’ may have been winning the first-ever Titanium Lion, the highest honor at the Cannes International Advertising Festival. The award recognized a campaign that caused ‘‘the industry to stop in its tracks and reconsider the way forward.’’
Case Study for American Express; American Express had built its reputation as a prestigious charge card. In 1976 the company began its fame ‘‘Do You Know Me?’’ campaign in which celebrities ranging from dancer Mikhail Baryshnikov to puppeteer Jim Henson appears in ads that picture them and an AmEx Green Card bearing their names. In 1987 the ‘‘Portraits’’ campaign follows a similar formula.
Learn, Explain, Discuss Case Study for American Express “Do More” Advertising Campaign!
By aligning the brand with stars, AmEx cultivated the notion that carrying one of its cards was more akin to joining an elite country club than making a financial transaction. Also, learn The Case Study Reference by the Encyclopedia of Major Marketing Campaigns, Thomas Riggs; Discuss Case Study for American Express “Do More” Advertising Campaign!
As later ads sniffed, ‘‘membership has its privileges.’’ In the 1980s, however, AmEx’s careful positioning began to backfire. According to Brandweek, while AmEx ‘‘clung to its old, elite ways,’’ the credit card industry went through monumental changes. With so many cards vying for consumers’ attention, Visa and MasterCard (specifically, the member banks that comprised the Visa and MasterCard consortia) began to cross-market with various businesses so they could offer incentives to consumers. For instance, by teaming up with airlines, Visa and MasterCard could entice consumers to charge purchases with the promise of frequent-flier miles.
Moreover, companies such as AT&T and GM allied themselves with the Visa and MasterCard brands and began to peddle cards that tied into phone service or car purchases. But while the entire industry became hyper-segmented; AmEx continues to sell itself on its reputation alone and lost market share as a result. Also damaging was Visa’s 1987 launch of an attack campaign that stressed Visa’s global acceptance by featuring countless businesses that decline to take American Express.
Now Explain:
Further limiting AmEx’s appeal was the fact that the company continues to charge its hefty $55 membership fee; while Visa and MasterCard offered fee-free cards and low-interest rates. Taken together these factors weakens AmEx considerably. More than 2 million AmEx cardholders canceled their memberships in the early 1990s; and, the company’s share of the domestic credit card market sank from nearly 20 percent in 1990 to 16 percent in 1995, according to Fortune.
In 1995 AmEx began to explore new ways to stanch the flood of cardholders abandoning AmEx and to persuade existing cardholders to use AmEx more often. After negotiating an agreement with Delta Airlines; AmEx was able to offer a frequent-flier program like those of its rivals. The company also debuted its Membership Rewards program; which gave consumers points for each AmEx purchase made. These points could then redeemed for bonuses such as gift certificates, travel vouchers, or car rentals at an array of participating businesses.
AmEx also introduced the Optima card, a revolving credit account similar to Visa and MasterCard in that consumers could carry a balance on it from month to month rather than having to pay it in full at the close of each billing period (as the Green Card required). Moreover, AmEx pushed more retailers to accept its cards. This effort was punctuated by the inauguration of the ‘‘Do More’’ campaign in June 1996. ‘‘This company has had a great history of reinventing itself,’’ Hayes told American Banker. ‘‘This is the next logical step.’’
Target Audience:
Because AmEx wanted to use ‘‘Do More’’ ads to gain new cardholders; the company crafted individual ads to appeal to distinct groups; especially, those that it had no target in its previous advertising. One of the keys approaches AmEx use to broaden its customer base was to employ spokespeople who counteracted the company’s image as; ‘‘a stodgy, premium brand that caters to older customers,’’ according to Wall Street Journal. In 1997, for instance, AmEx signed Woods, who had won the Masters Tournament that year.
As a 21-year-old phenomenon of mixed race; Woods provided AmEx an opportunity to reach younger consumers as well as African-American consumers. It was essential to AmEx’s future that it garners younger consumers; because they ‘‘tend to stick with the first credit card they use’’, explained USA Today. Furthermore, Woods was able ‘‘to cross every demographic line . . . and appeal to an audience that makes $250,000 a year; as well as an audience that makes $25,000,’’ an industry analyst told American Banker.
First goal:
Seinfeld, who pitched the Green Card in spots that aired during such high-profile events as the Super Bowl, was another figure that transcended the traditional AmEx audience. ‘‘The Seinfeld advertising has attracted a new and younger group to the franchise and has also helped promote everyday usage, which is key’’, Hayes told Brandweek. While AmEx was typically associated with the travel and leisure retail sector; the company wants to increase the routine purchases consumers charge each month to their AmEx cards.
Instead of presenting Seinfeld in the same sort of glamorous settings that permeated ‘‘Portraits’’ or ‘‘Do You Know Me?’’ AmEx showed Seinfeld wielding his Green Card at grocery stores and gas stations. One commercial paired Seinfeld with the animated figure of Superman and portrayed Seinfeld (rather than the caped hero) rescuing Lois Lane at a grocery store by pulling out his AmEx card. (She had forgotten her wallet; Superman’s costume had no pockets; Seinfeld paid for the food). Similarly, in the 1998 series of spots for AmEx’s Small Business Services division; the company focused on African-American, Latino, and female entrepreneurs. ‘‘We have represented the three groups who represent the strongest growth in new business starts,’’ an AmEx spokesperson told Brandweek.
Second goal:
In the 1998 ads that did present wealthy and prominent businesspeople; AmEx chose the likes of Jake Burton, a snowboarding pioneer; and, Earvin ‘‘Magic’’ Johnson, a basketball Hall-of-Famer who had been diagnosed with HIV, both of whom Hayes classified as; ‘‘people who have challenged the status quo and appreciated the service we give . . ., not just those that fit the traditional view of success.’’ Despite AmEx’s desire to broaden its consumer base; it was careful not to ‘‘move downscale,’’ as Hayes described it in Brandweek. The company had considerable brand equity rooted in AmEx’s reputation for superior service; and, it did not want to alienate its core group of affluent card users. ‘‘Creating the balance where the brand becomes accessible, yet . . . remains special at the same time, is a real challenge,’’ Hayes said.
AmEx relied on its spokespeople’s ability to walk this tightrope. Though Woods was young, he was nevertheless a golfer; a player of a sport popular among businessmen. Moreover, Woods was not a rebellious upstart. Though barely out of his teens, he was one of the best golfers in the world. Similarly, Seinfeld’s hit sitcom was watched by a huge audience. Popular with many viewers, Seinfeld was not exclusively a Generation X hero; and, the commercials featuring him also appealed to AmEx’s older cardholders as well.
Competition:
Industry leader Visa had persisted in its attacks on AmEx since the 1985 launch of its ‘‘It’s Everywhere You Want to Be’’ campaign. Although Visa’s share of the domestic credit-card market fell to 48.8 percent from 49.2 percent in 1996; it continued to portray businesses, restaurants, and entertainment providers that would not accept AmEx as a way to stress the universality of its cards. Like AmEx, Visa also addressed specific new markets in its 1998 efforts. Under the umbrella of the ‘‘Everywhere’’ theme, Visa targeted Generation X consumers in ‘‘The Attic,’’ a commercial featuring a trendy used-clothing store.
In ‘‘eToys,’’ a television spot for an online merchant, Visa linked itself to the growing e-commerce sector by presenting itself as the credit card of choice for Internet purchases. With a commercial highlighting, Jack Nicklaus’s golf school (which only took Visa); Visa tried to reach more affluent cardholders. A cornerstone of Visa’s marketing strategy was its sponsorship of sporting events.
First Comp:
In addition to being the official sponsor of the National Football League (NFL); horse racing’s Triple Crown races (the Kentucky Derby, the Belmont Stakes, and the Preakness), and NASCAR auto racing; Visa had been an Olympic Games sponsor since 1986. Visa used the 1998 Winter Olympic Games as a platform to reinforce its message of global acceptance. As a Visa executive explained on January 30, 1998; edition of American Banker, ‘‘nothing was better for a brand’’ than associating itself with the Olympics. Like American Express, Visa also endeavored to expand its empire—and its name recognition—beyond credit cards.
In 1998 Visa continued to promote its debit card, the Visa CheckCard, with big-budget advertisements depicting celebrities being hassled for identification when writing a check. Visa touted its small-business cards as well. According to the October 5, 1998, issue of Advertising Age, Visa’s long-term goal was to leverage ‘‘its brand equity into different kinds of payment.’’ MasterCard, too, vied to be consumers’ card of choice.
Second Comp:
Breaking free from a long period of mediocre advertising and negligible growth, in 1997 the company debuted ‘‘Priceless,’’ which ‘‘became one of the industry’s most admired campaigns, creating an almost nonstop buzz . . . [and] raising consumer awareness and consumer usage of the card,’’ Adweek raved. Using the tagline ‘‘There Are Some Things Money Can’t Buy. For Everything Else There’s MasterCard,’’ MasterCard’s agency, McCann-Erickson, made an emotional appeal to its viewers. These print and television advertisements show scenes of various activities, such as a father and child at a baseball game and an older couple celebrating a wedding anniversary.
The voice-over announced the cost of various aspects of these endeavors; and, the commercials all culminated in a ‘‘priceless’’ moment (such as a ‘‘real conversation with 11-year-old son’’ at the end of the baseball spot); followed by the campaign’s tagline. Buoyed by ‘‘Priceless,’’ MasterCard’s purchase volume rose 16 percent from 1997 to 1998 and its market share remains steady; increasing slightly to 27.8 percent from 27.6 percent, according to Credit Card News.
Advertising Strategy:
Because the primary goal of ‘‘Do More’’ was to establish the brand’s relevance to diverse consumers; AmEx used a targeted strategy to pair specific messages with specific groups. For instance, the print executions portraying small-business entrepreneurs ran almost entirely in publications such as Success, Entrepreneur, and Forbes. The initial Tiger Woods ads touting American Express Financial Advisors favored major newspapers (especially the Wall Street Journal, the New York Times, and USA Today); and, newsweeklies (including Time and Newsweek) over lifestyle publications.
AmEx chose to air the Seinfeld commercials on mainstream, high-profile television programming; because, the company hoped the comedian could connect a mass audience of credit-card users to the Green Card. ‘‘Superman’’ first appeared in NFL playoff games, which reached viewers across demographic lines. The message of ‘‘Does More’’ was that AmEx—not Visa or MasterCard—could improve one’s ventures and that AmEx was a global solution always available to make things better (or easier). Part of the way AmEx delivered this message was by making its ads attention-getters.
First part:
The spokespeople chosen to represent the various facets of the brand were not only well know but also had a certain renegade charm. Certainly, Johnson was one of the greatest basketball players of all time; and, his excellence was intended to mirror AmEx’s reputation for service and prestige. But Johnson had also shocked the nation when he announces he was HIV-positive. Pundits had decried him, and some fellow basketball players even shunned him. Using him in the AmEx spots was a daring choice and attracted much notice.
Similarly, the ‘‘Superman’’ spot was designed ‘‘to break through the commercial clutter,’’ Hayes said. Instead of banking on Seinfeld’s celebrity, AmEx created a commercial that juxtaposed him with a comic book character; and, spoofed the notion of any credit card (or personality) being able to ‘‘save the day’’. As he took his AmEx card out of his pocket, Seinfeld spun around in a blur. An onlooker asked, ‘‘What’s with the spinning?’’ ‘‘He idolizes me,’’ Superman wryly explained. ‘‘It’s embarrassing.’’ Again, the notion was to twist the genre slightly; to prompt viewers to sit up and take note that American Express was not quite what everyone assumes it to be.
Second part:
In 1999 AmEx extended its association with Seinfeld. One noteworthy spot shows the comedian embarking on a cross-country road trip after observing that he needed to ‘‘get some kind of real-life’’. In keeping with his persona, his adventures were simultaneously largescale and trivial: among other activities; he saw Mount Rushmore, held a cup of coffee that was too hot, had a conversation with an attractive blond woman, and visited Saint Louis Arch.
American Express updated the ‘‘Do More’’ concept in 2000; adapting the tagline to a sub-campaign dubbed ‘‘Moments of Truth,’’ the first phase of which consisted of five TV spots featuring ordinary people. Each of these commercials focused on the fact that AmEx offered ‘‘more’’ services than its competitors. For instance, American Express’s travel-assistance benefits were touted in one spot that shows a woman waiting fruitlessly at an airport baggage claim. Another spot emphasized American Express’s partnership with the bulk-sales supermarket Costco; yet another focused on the company’s online-banking offerings via the juxtaposition of a ‘‘wired’’ young woman with her ‘‘analog’’ father, who was paying bills by hand.
Third part:
The tagline’s flexibility was further demonstrated by that year’s highest-profile and most imaginative spot; which features Tiger Woods playing an outsize game of golf on the streets of Manhattan. Woods was shown swatting a ball over the Empire State Building and then from Central Park all the way downtown to Wall Street; before sinking a putt in a paper cup positions on the Brooklyn Bridge. In this case ‘‘do more’’ was intended as a suggestion that American Express could help cardholders realize their most ambitious hopes.
American Express Company’s ‘‘Do More’’ campaign truly was a global one, running in 23 different countries simultaneously. Although the same basic ads were used everywhere, the ad agency Ogilvy & Mather changed small details when appropriate. ‘‘We’ve created an overall platform for positioning,’’ John Hayes, the company’s head of global advertising, told Advertising Age. ‘‘We make modifications and customizations everywhere to make sure what we do is right.’’ Golfer Tiger Woods proved an especially valuable global representative—particularly in Japan; where golf was a passion among a large percentage of the population.
Discuss Case Study for American Express “Do More” Advertising Campaign. Image from Pixabay.
Campaign Outcome:
When AmEx inaugurated ‘‘Do More’’ in 1996, critics predicted that the company would lose its ability to differentiate itself by shedding some of its snobbish images. Ogilvy and AmEx quickly seemed to prove the skeptics wrong; however: the company’s 1996 purchase volume rose 15.6 percent, and ‘‘after years of decline’;’ its 1997 share of the domestic credit-card market climbed to 17 percent from 16.4 percent, according to Advertising Age. AmEx posted global market share declines in 1998 and 1999; but, this was partly a result of the Visa and MasterCard emphasis on debit cards; a product AmEx did not offer.
AmEx countered with its most successful product launch in recent memory, the Blue Card, aimed at college-age consumers and other young adults. The ranks of Blue Card holders steadily increased in 2000 and 2001; and, AmEx unveiled a Blue Card designed for small-business owners. Although Blue Card’s marketing did not fall under the ‘‘Do More’’ umbrella; it did build on the strategy of democratizing the traditionally upscale AmEx brand image; an approach whose merits were no longer questions at the beginning of the new century. This change in perception was perhaps a measure of the success of the brand re-positioning accomplish through the ‘‘Do More’’ campaign.
The Seinfeld and other ‘‘Do More’’ spots aired through 2001; but AmEx, like many advertisers, struggled to find appropriate ways to promote itself in the somber months after the terrorist attacks of September 11, 2001. AmEx’s post-9/11 difficulties were compounded by the fact that the company’s headquarters were located at the World Financial Center, adjacent to the Twin Towers, which had collapsed. In early 2002 the ‘‘Do More’’ tagline was dropped in favor of ‘‘Make Life Rewarding’’. Both Seinfeld and Woods continued to involve with the American Express brand.
In the Case Study of learning and Discussing Doves Campaign for Real Beauty. In the case, you learn the Campaign how to start, and how to be part of Dove Real Beauty Campaign. Unilever’s Dove brand was launched in the market as a cleansing bar soap in 1957. The soap was based on non-irritating cleaner and moisturizing component. By 1970s, Unilever had enhanced the soap into a beauty bar, which was milder and promised women of moisturized skins.
The popularity of the soap at this time soared, and Unilever started expansion into the global market and by 1996, the brand was sold in over 80 countries. Between 1995 and 2001, Unilever expanded the range of products under the Dove brand to include moisturizers, face creams, deodorants, shower gel, shampoos, conditioners, among other wide range of beauty and care products. Also, More know it, Discuss Case Study for Dove’s Campaign for Real Beauty!
Learn, Discuss Case Study for Doves Campaign for Real Beauty!
Image: #Dove
The key features and attributes of the brand such as its soft colors focused on promoting it as a rejuvenating, calming and exfoliating product brand with milder effects on the skin and high-performance moisturizing abilities for dry skins. As the Dove brand mainly targeted women, its dove logo and tagline represent gentleness and softness at a higher sophistication in performance.
#The Campaign’s Inspiration:
In 2004, the Dove Brand commissioned a report “The Real Truth About Beauty: A Global Report – Findings of the Global Study on Women, Beauty, and Well-Being.” It is rooted in the increasing concern that representations of female beauty in the popular culture fed a definition of beauty that was both inauthentic and unattainable. The Dove Brand theorized, resultantly that women are in this way prevented from appreciating beauty in themselves.
Furthermore, in a culture women are so highly valued on their physical appearance, these standards have the potential to negatively impact women’s self-esteem, happiness, and overall well-being. Dove commissioned researchers from Harvard University, the London School of Economics, and StrategyOne to examine the relationship women have with beauty, determine how women define beauty, learn the level of satisfaction with women’s beauty and the impact beauty has on the well-being of women.
The findings were based on interviews with 3,200 women between the ages of 18-64 and were largely disheartening. Worldwide, only 12% of women are satisfied with their physical appearance. No women described themselves as “gorgeous,” 1% of women described themselves as “stunning” and 2% of women describe themselves as “beautiful.” However there was a market demand for broader, more inclusive definition of beauty: 68% strongly agree that the media sets an unrealistic standard of beauty and 75% with the media did a better job of representing the broad range of women’s physical attractiveness, including size and shape and age. Furthermore, components of true beauty extend beyond mere physical attractiveness, to happiness, kindness, wisdom, dignity, love, authenticity and self-realization.
With this in mind, the management team at Dove saw a great opportunity. At the time they were just introducing their line of beauty products.
#Real Beauty Campaign:
The campaign developed by Ogilvy and Mather focused on interacting with the consumers. With Dove branding itself not only as a beauty brand but also one that cares about and reaches out consumer’s needs. Adopting a reality-based campaign using everyday girls in their advertisements. Dove not only enhanced self-confidence but also showed that Dove provides effective. Accessible and affordable products that real women can confidently use to care for their skins. Philippe Harousseau, Dove’s marketing manager noted that the Dove campaign sought to challenge the stereotypical beauty of young, tall and blond, and rather change the way beauty is perceived by emphasizing the beauty of each woman.
The first phase of the campaign
In 2004, Dove launched the first phase of its campaign to combat the problems revealed in their global study. They rolled-out a series of advertisements featuring women whose appearances are outside of the stereotypical norms of beauty.The Dove campaign recruited women recruited off the streets (at coffee shops, bookstores, grocery stores, etc.) instead of professional models. The women in the print ads are between the ages of 22 and 96 and a range across a variety of sizes (from 6 to 12).
The images were shot by in-demand fashion photographer David Rankin. Dove guarantees the images in the campaign have not been airbrushed in any way. The advertisements were placed on billboards and bus stops throughout New York, Chicago, DC, LA, and other top urban markets and asked viewers to go online to cast their vote. Whether the models were “Fat or fab?”, “Wrinkled or wonderful?”, “Grey or gorgeous?” and “Freckled or flawless?”
The second phase of the campaign
Launched in 2005, was the most iconic and featured six women with “real bodies and real curves.” This phase’s mission was to directly challenge the stereotypical assumption that only thin is beautiful. The ads promoted Dove’s firming lotion.
In response to the news and media outcry that erupted after Spain banned overly-skinny models from runways in 2006. Dove expanded on this phase of the campaign with three notable video ads: Evolution, Onslaught, and Amy. Each one of these videos tells a little bit about their campaign.
Evolution is a video about the beauty industry’s efforts to change women’s appearances into something completely different in the pursuit of publication. The video starts with a woman walking in the frame and sitting on a stool. A man can be heard shouting directions to some crew. The screen fades to black and then words appear on the screen.“A Dove film” followed later by “evolution.” As the woman comes back onto the screen, lights begin to turn on and people start to surround her, doing her hair and make-up.
As the music swells the viewer, the artists transform an average-looking blonde woman into a creation filled with make-up and hairspray. The video is on time-lapse, so what likely took over an hour to complete takes mere seconds to watch. After the transformation, the woman models for a photographer, as noted by the flashing lights. A photo is selected and then placed into photo editing software. Her neck is elongated, her hair expanded, her eyes enlarged along with a myriad of other small details to alter the image. The camera starts to zoom out and the viewer can see that the image is now on the billboard overlooking a busy street.
Then “No wonder our perception of beauty is distorted” appears on the screen. The video ends with the Dove self-esteem fund logo. This video serves as a way to inform viewers about the Dove fund and to speak out against the rampant use of cosmetics and technology in order to alter women to appear as something they are not. They took a woman and made her into something that she could never be, with features not physically possible. But in a packaged way that made her seem normal nonetheless.
Onslaught is similar to Evolution in that it also targets the beauty industry. And how they make an attempt to change women or tell them to change. Onslaught also starts with a black screen and then the “a Dove film” and “Onslaught” appear on the screen. A young redheaded girl appears on the screen. Cheery music starts in the background, but transitions to more of rock music with the words “here it comes” repeated five times each time heightening the anticipation of the viewer.
The final repetition
It is joined with the little girl disappearing and images of ads with small women taking her place. The ads are shown for less than a second each, not enough time to actually see what they are advertising. But enough time to notice the often scantily clad women. The body part in the clips varies between buttocks, legs, chests, lips, and every other imaginable body part. The video pauses at what can be assumed as a music video with two women in bathing suits gyrating.
The video returns to clips with ads for things to alter appearance. Keywords can now be made out and strung together they say, “You’ll look younger, smaller, lighter, firmer, tighter, thinner, softer.” As the barrage continues, the adds show a woman on a scale. Her body gets smaller then larger and then smaller again in alternating clips spread through ones for losing weight.
Then the montage of plastic surgery—everything from breast augmentations to rhinoplasties. The ad then flashes to a few young girls walking across the street. “talk to your daughter before the beauty industry does” appears on screen right as the young redhead crosses the street looking at the audience. The ad finishes with the Dove fund logo.
The name of the video is quite telling about what Dove is trying to say. The little girl is meant to be a symbol of innocence and purity. She has not be affected by outside influences, yet. She soon will be noticing images everywhere, an onslaught. In fact, that will be influencing her perception of the ideal body. Dove is urging parents, mothers specifically, to warn their daughters about how companies advertise and to have them get their confidence from internal sources rather than external ones.
Amy again starts in a similar fashion to the other two videos. The video shows a young boy, roughly 12 in age riding his bike to a house. He sits outside saying, “Amy” repeatedly. He looks disappointed that she is not appearing. After it is clear that he has been waiting a while, “Amy can name 12 things wrong with her appearance.” Preceded by a pause, “He can’t name one” then flashes followed by “Sent to you by someone who thinks you’re beautiful” and the Dove fund logo. Amy is supposed to be a young girl who has been affected by the beauty industry. She is self-conscious and is likely seeing problems that others don’t actually see.
#The Campaign’s Effect:
The campaign received free advertising space from media coverage on national television shows that reached 30 million viewers. The Oprah Winfrey Show aired the campaign daily for a week straight. The Ellen DeGeneres Show, The Today Show, The View, and CNN also featured in the campaign. Over the following year, profits from these advertisements increased dramatically and the campaign returned $3 for every $1 spent which is encouraging. Because it suggests that making profits and promoting ideas of positive beauty aren’t mutually exclusive goals.
In her book, Enlightened Sexism, Susan Douglas writes that the year that Dove started the Campaign for Real Beauty. Their sales rose 12.5% and 10% the year after, hardly something to ignore. Clearly, women were responding to their ad campaign. Women flocked to the company that was putting real women in their ads.
Powerful moving the campaign
This campaign was powerfully moving for many women who were extremely relieved to see the everyday diversity of feminine beauty celebrated by a prominent beauty company. Stacy Nadeau (one of the six Dove Beauties, now a public speaker and promoter of self-esteem in young girls) gave a lecture at Colgate in 2010 during which she told a story about a public appearance the six of them made shortly after the unveiling of the 2nd phase.
One middle-aged woman approached the group, crying and holding Dove advertisements and a picture of her daughter, who was recovering from anorexia. She said her daughter’s prognosis was extremely dire until the launch of this advertisement campaign at which point these photos became an inspiration for her daughter. In an emotional moment for all, still openly crying she thanked the women for saving her daughter’s life.
As a whole, Dove’s campaign for real beauty was a pioneering attempt to challenge the conceptions of beauty that are so limiting and harmful to women.
#Campaign Critiques:
In a world that is inundated with images that give women a narrow view of what the ideal body. Dove’s Campaign for Real Beauty is a refreshing change. It opens up the conversation about how young women are influenced by the media and how the media can distort images to give unrealistic expectations. However, the Dove campaign also falls victims to some of the old tricks. Such as consumerism and sexualization as a means to empower women. Critics voiced concerns about the authenticity of the brand’s movement. Their parent company’s questionable associations, and the actual product the ads are selling.
As previously mentioned, the campaign generated double-digit growth for Dove in the second quarter of 2005. As evident in Dove’s case study, which is very blatantly focused on the economic advantages of this campaign. Women influence or buy 80% of products sold, thus marketing to women is crucial for Dove’s success. Author Jonah Bloom remarked, “ You think Dove hatched ‘Campaign for Real Beauty’ because it cares about women’s self-esteem? No, it simply wanted to play to the pack-following newsrooms all over the country that it knew would give the campaign more media coverage than it could have bought with a decade’s worth of marketing.”
But, by going and buying these products, women were, and still are, falling victim to consumerism. Dove’s campaign is giving women a means to overcome the stick figure expectation. But, they must purchase their products to do so. In order to break free of the pressure from some companies, they buy products from another. Assumed power and control are only given through consumerism.
The Dove Brand’s parent company is Unilever which owns many off-shoot brands including AXE, Slimfast, and Fair and Lovely. AXE commercials depend heavily on sexist stereotypes and overtly sexualized women to sell their product. Slimfast is clearly in direct contradiction of the message of the Dove campaign as it’s products perpetuate the same body-insecurity problems Dove’s is trying to fight.
Fair and Lovely is a skin-lightening product that is marketed to dark-skinned women across the world. This product reinforces the stereotype that light skin and beauty are somehow related. While the creators of Dove’s campaign for real beauty may not be in the position to directly influence the actions of these other products. The mere association is enough to slightly tarnish the image of the campaign.
Another issue with the Dove’s campaign for real beauty is the sexualization of women. The most well-known ad for the company is a series of “real” women clad only in white underwear posing for a camera. They are heralded as a change in times. In order to show that the women are comfortable in their own skin, they are showing nearly all of it. In most cases, ads targeted towards women do not have scantily clad women in them.
Those are typically for men. Many of Dove’s products are for smoother or softer skin, which is easily shown with the half-naked women. White is generally associated with purity and cleanliness. By having white undergarments for the women to model, they are being given an underlying nature of cleanliness and purity. In this case, the purity can come across as sexual purity.
Since it is an ad about women celebrating their bodies, of course, it is not about sex. In fact, it is the opposite. Because of the nature of the ad, the marketers were able to be more sexual without off-putting their female consumers who would normally oppose such a move. The ads are telling women that they can be empowered by being sexual, i.e. by still being attractive in their underwear. The ads from Dove still fall victim to sexualization.
Case Study for GoDaddy Super Bowl Commercials; What is the case study? First, we know about the company, how they startup? what is the service they provide to us? GoDaddy was a small group in the crowded internet domain name registration, domain buys, and sale. They Started in 1997, the company has grown mainly through word of mouth. Bob Parsons sold his first successful company, Parsons Technology, in 1994, and in 1997 he used the proceeds to start a new company, Jomax Technologies. Unsatisfied with the Jomax name, Parsons and his staff came up with the more arresting moniker Go Daddy.
Learn, Explain, A Case Study for GoDaddy’s Super Bowl Commercials.
As Parsons told Wall Street Transcripts, the name worked ‘‘because the domain name GoDaddy.com was available; but, we also noticed that when people hear that name, two things happen. First, they smile. Second, they remember it.’’ After an unsuccessful attempt to establish the company as a source for website-building software; Parsons reinvented Go Daddy as a registrar of Internet domain names; buying unused website names and then reselling them to individuals and businesses in need of an online presence.
Go Daddy also offered auxiliary services and products enabling customers to launch their sites after the domain-name purchase; including (as in the company’s early days) software for building sites. Domain-name registration; however, was a burgeoning industry as America became increasingly wired and more and more businesses found it essential to establish a Web presence.
By 2004 Go Daddy had sold nearly seven million domain names and was the world’s leading registrar of domain names. Up to that point the company had done little marketing, relying primarily on word-of-mouth buzz and low prices; Go Daddy offered domain names for $8.95, compared with fees of $35 at the industry’s high end.
This Case Study Reference: Encyclopedia of Major Marketing Campaigns. -Thomas Riggs.
In late 2004 Go Daddy enlisted New York agency the Ad Store for its first sustained offline advertising campaign. The company announced that the campaign would make its TV debut during the 2005 Super Bowl; a move that drew widespread criticism, partly because of the recent history of Super Bowl advertising undertaken by dot-com companies.
Dot-com advertising on the Super Bowl had been prevalent in the late 1990s and the first few years of the new century but had been nearly absent from the game since the bursting of the Internet bubble, leading many industry observers to connect such Super Bowl airtime purchases with the fiscal irresponsibility characteristic of failed dot-coms. Parsons argued that his company was different.
As he told Brandweek,
‘‘Back in ‘99 . . . dot-coms raised money on ideas that weren’t viable. But we are the leader in our industry and actually, do make money.’’
That Super Bowl played on February 6, 2005, was the first since the infamous ‘‘wardrobe malfunction’’ that had resulted in pop singer Janet Jackson’s breast being exposed on the air during the previous year’s halftime show. Among the results of the public outcry following the incident was increasing pressure on Super Bowl advertisers to avoid risky images and themes.
More things;
Go Daddy chose to fly in the face of this pressure by running a sexually suggestive commercial that lampooned the prevailing climate of censorship. With a 30-second Super Bowl spot costing $2.4 million; Go Daddy’s decision to advertise twice during the game represented a considerable risk for such an unknown company. Additional production expenses approached $1 million.
The spot featured a buxom woman undergoing Congressional questioning to gain approval to appear in a commercial for GoDaddy.com. As the woman pointed to the GoDaddy.com logo on the front of her tight tank top; one of the shirt’s straps broke a wardrobe malfunction that was met with camera flashes and shocked exclamations as the woman continued to explain what GoDaddy.com was.
The commercial aired as planned during the first quarter of the Super Bowl; but then, apparently because of the protests of a National Football League executive; Fox neglected to run the spot during the second on-air slot that Go Daddy had purchased. The spot was rated one of the Super Bowl’s most memorable; but, it was the controversy surrounding the network’s refusal to air it a second time that proved to be Go Daddy’s true marketing coup.
The numerous media stories about Fox’s censorship of a commercial about censorship gave Go Daddy nearly $12 million in free publicity. The company continued to run TV spots featuring the tank-top-clad woman; including a spot during Super Bowl XL that referred to the previous year’s commercial.
Target Audience:
Parsons told Brandweek that Go Daddy targeted ‘‘everyone who wants a Web presence.’’ Go Daddy’s domain-name prices were among the industry’s least expensive; and, it offered a range of website-management services that comparably priced competitors did not; therefore, Parsons and his colleagues believed that the company would continue to grow rapidly as long as it could make a wider public aware of its brand.
The Super Bowl, of course, offered one of the last giant television audiences in an age of fragmenting viewership; and, it was annually the most-watched television program in America by a wide margin. Super Bowl XXXIX was expecting to reach 130 million U.S. viewers; though the actual number of viewers watching the game at any given time was estimated at closer to 90 million.
If Go Daddy could make a splash with an audience of this size; it could count on a much greater degree of brand awareness among the American population at large. Though that year’s restrictions on the content of Super Bowl commercials limited the degree to which advertisers could use provocative imagery and messages; Go Daddy and the Ad Store nevertheless charted an intentionally controversial course as a means of standing out from the field of high-profile advertisers. The Go Daddy commercial thus featured an attractive female model in sexually suggestive attire and in a context that directly parodied the political hysteria surrounding the previous year’s halftime incident.
Campaign Strategy:
The official price for 30 seconds of Super Bowl XXXIX airtime was $2.4 million, and Go Daddy bought two such blocks of time, intending to run the same commercial twice; once in the first quarter of the game and once just before the two-minute warning at the game’s end. Media-industry insiders contended; however, that publicized Super Bowl advertising rates were akin to sticker prices on automobiles and that advertisers ultimately did not pay the full amount.
Go Daddy’s expenses were not limited to the media-buying cost;
The company invested close to $1 million in the production of its Super Bowl commercial, an amount of money equivalent to the yearly marketing budget of comparably sized companies. Part of this expense was a result of unforeseen problems with Fox in the weeks leading up to the game.
As Tim Arnold, managing partner at the Ad Store, recounted after the fact in Adweek, Fox approved storyboards of the Go Daddy commercial on December 3, 2004 (just over two months before the Super Bowl, which was played on February 6, 2005); only to withdraw that approval on December 22, after the commercial was already in preproduction.
After Fox placed new restrictions on the commercial—including a demand that the words ‘‘wardrobe malfunction’’ remove from the script—the Ad Store shot ‘‘16 and a half’’ versions of the spot to account for all possible objections the network might yet make.
The network continued to reject proposed versions of the commercial until the week before the game; at which point Go Daddy finally received grudging permission to use the airtime for which it had already paid more than $4 million.
What banner Ads;
The commercial reproduced the look of the C-SPAN network (known for its live coverage of Congressional matters); with a banner at the bottom of the screen informing viewers that they were witnessing; ‘‘Broadcast Censorship Hearings’’ in Salem, Massachusetts. A woman named Nikki Cappelli (played by Candice Michelle); wearing a tight-fitting tank top and jeans in an otherwise formally dressed crowd; explained to the Congressional committee that she wanted to be in a commercial.
When asked what she was advertising; she stood and pointed to the chest of her tank top, on which the GoDaddy.com name was printed; and, as she began to inform the panelists about the company’s identity; a strap on her top snapped, threatening to reveal her breasts and triggering a flurry of camera flashes and gasps from onlookers.
Asked what she would do in the commercial, Cappelli stood and danced with her arms in the air, again triggering shocked gasps and camera flashes. A Congressional panelist then said, ‘‘Surely by now you must realize that you’re upsetting the committee.’’ Cappelli earnestly replied, ‘‘I’m sorry, I didn’t mean to upset the committee,’’ as an elderly committee member was shown putting an oxygen mask to his face.
A black screen featuring the message ‘‘See more coverage at GoDaddy.com’’ then appeared—a reference to an uncensored and more sexually suggestive version of the ‘‘hearings’’ that was available for viewing on the website; and, the commercial closed with the voice of a female committee member saying, ‘‘May I suggest a turtleneck?’’ The commercial never made its second appearance on the Super Bowl. After airing it in its assigned first-quarter spot, Fox decided not to run it in the fourth quarter, reportedly because of complaints made by a high-level National Football League executive.
Competition:
Among Go Daddy’s top competitors was Network Solutions; which was introduced as a technology consulting company in 1979; making it a veritable ancient in the online world. Network Solutions was awarded a grant from the National Science Foundation in 1993 to create a single domain-name registration service for the Internet; which effectively gave the company a monopoly in the industry of domain-name registration until 1999 when the field was opened to competition.
The Internet-security and telecommunications company VeriSign acquired Network Solutions at the height of the dot-com bubble in 2000, for $15 billion (the largest Internet merger in history at that point). The company’s 2003 sale to Pivotal Equity was a measure of the changes in the dot-com world in the interim: the purchase price this time was $100 million. Register.com was another of Go Daddy’s rival domain-name registrars. The company was founded as a domain-name registrar in 1994; and, it was one of the five original companies selected for entry into the newly opened market in 1999.
Like Network Solutions, Register.com had Internet-bubble baggage. The company made its initial public offering on March 3, 2000; a week before the Nasdaq peaked, for $24 per share; by the end of that first trading day, Register.com is pricing at $57.25 per share. Register.com shares climbed to $116 before the dot-com bubble definitively burst. By 2005 the company’s shares were hovering between $5 and $6 and were considered by many analysts to be a good value for the money.
A Case Study for GoDaddy’s Super Bowl Commercials; Image from using.
Campaign Outcome:
During the Super Bowl, traffic to GoDaddy.com spiked by 378 percent; and, a survey conducted one and then two days after the Super Bowl found; that the Go Daddy commercial was the most memorable of all spots that ran during the game. It was the story of Fox’s decision not to air the commercial a second time; however, that proved most useful to the company. The censorship of a commercial that itself poked fun at overzealous censorship proved irresistible to the media; especially in the context of the ongoing commentary about standards of broadcast decency.
The year 2005;
As word of this incident spread, Go Daddy became by far the most talked-about Super Bowl advertiser. The buzz surrounding the brand in the game’s aftermath—measured as ‘‘share of voice,’’ the percentage of times that Go Daddy mentions in stories about the Super Bowl that ran on national, cable, and the top 50 local TV networks; calculates at 51.4 percent between February 7 and 11, 2005.
Go Daddy received nearly $12 million in free publicity, and many of the TV stories about the incident replayed portions of the commercial. Bob Parsons said in a press release, ‘‘Go Daddy accomplished exactly what it set out to achieve with its first-ever Super Bowl ad—increased brand awareness. Today, millions of people now know about GoDaddy.com, which in turn has generated significant new business.’’ The magazine Business 2.0 declared the Go Daddy Super Bowl effort the ‘‘Smartest Ad Campaign’’ of 2005.
Though Go Daddy allowed its contract with the Ad Store to expire soon after the 2005 Super Bowl; moving its creative duties in-house; the company’s subsequent advertising conformed closely to the model established by the Super Bowl commercial. The actress who played Nikki Cappelli, Candice Michelle, continued to appear in Go Daddy spots that drew overt attention to her sexual appeal; and, she became known as the ‘‘Go Daddy Girl’’.
The year 2006;
In 2006 she appeared in a Go Daddy spot that ran during the NFL Playoffs; and, Go Daddy again struggled to get a spot approved for the Super Bowl. The Super Bowl XL commercial; which rehashed material from the previous year’s spot, again ran in an extended form on the company website; as did alternate versions of other Go Daddy commercials.
Website visitors could read a detailed history of Go Daddy’s attempt to gain approval for its 2006 Super Bowl entry and could also view numerous spots that had been denied; suggesting that the company’s battles against censorship had become increasingly self-conscious and premeditated. Go Daddy continued to grow rapidly.
Merger Between US Airways and American Airlines; On December 9th, 2013 the two airlines, US Airways, and American Airlines merged to form the American Airlines Group that turn out to be the major airline in the world. Case Study, Merging American Airlines, and US Airways using change management models like Kotter; This merger was structured by the enlarged competition that airlines are countenancing in the business at present. The merger offered a prospect for both airlines to make use of the benefits of an extensive network. That would affect after merging as countered to when each one operates separately. One of the foremost circumstances that encircled the merger was the imminent insolvency of American Airlines.
Learn and Understand, Case Study on the Merger Between US Airways and American Airlines!
The company in 2011 had filed for bankruptcy even though it relapsed to profitability the same year in July. The merger would enhance admission to opportunities of business for both airlines, particularly American Airlines that would decrease its coverage to financial risks. Which were the preliminary rounds for the corporation filing for bankruptcy? The merger would generate enhanced synergies that would be apparent in the course of increased flexibility and financial strength in the market.
Each of the entities merged would have admission to further destinations and bigger clientele. Each of them would admit to a bigger destination network i.e. 300 destinations all around the world. They as well had a codeshare contract where customers would impeccably book. Their flights from any US Airways or American Airlines networks. Such controls are an enhancement to each of the airline’s abilities and results in bigger business and performance.
Explain 01:
There are a variety of positive traits of this merger. One of the major advantages is that both airlines will have an imminent penetration of the market than what they had beforehand. This is since they will be creating daily more than 6,500 flights to above 300 destinations in additional. Then 50 countries all around the globe, affected enlarged revenues and improved governance of the most important routes. The American Airlines Group after the merger is a foremost player in Latin American. The global market for the airline (CAPA center for aviation). The exploitation of these prospects directs to enhanced market performance and superior capability to compact with aggressive pressure. This is since the fresh airline company, after the merger, has additional resources at its disposal that direct to superior performance.
An additional advantage of the merger is the increase and diversification of the products offered by the airline. Alongside the code-sharing contract that permits air travelers to book. Their trip from any of the websites of the company. There is improving access to one world association. This entails the improved opportunities of networking for the airline in the course of business agreements with further players in the industry, for instance, Iberia, British Airways, and Finnair. It lets the customers’ additional choices of air travel and unforgettable experiences of traveling crosswise a superior and more improved network. This develops levels of customer satisfaction and is necessary for developing loyalty to the customer.
Explain 02:
The merger as well generates one of the finest-developed programs of loyalty i.e. Advantage. Customers have superior access to prospect to possess and redeem miles crosswise the joint routes of both airlines. It constructs the customers gain from increased utilization of opportunities and capabilities in the wider market. It as well results in increased expediency for travelers, ensuing in cost savings.
The fresh organizational structure has perceived the Doug Parker retention as the Chief executive officer of the fresh entity. The merger has, consequently, seen the construction of simply one chief executive’s place as opposed to two because of the fact. That each one of these companies had its individual chief executive formerly. There were as well considerable changes in the Board of Directors for the fresh company. The newly appointed Board of Directors incorporated four representatives of US Airways employees and as well five representatives for creditors of American Airlines. The preceding Boards of the separate entities did not have such representatives.
Doug Parker was formerly the chairman and chief executive of US Airways. On the other hand beneath the new position, the chief executive will not be the chairman of the board. The preceding companies in particularly US Airways had a variety of groups that exercised to operate underneath the chief executive. Such groups incorporated corporate affairs, marketing and revenue group, and finance, in addition to the operations groups. However, underneath the new corporation, there are no such groups.
Explain 03:
There were no chief changes in the practices of human resources after the merger. The fresh company, American Airlines Group, adopted the majority of its human resource strategies from US Airways and maintained the majority of its top managers. The foremost reason the corporation made no important changes in their human resource strategies is owing to reasons of business.
They wanted to preserve their combined market share where employees contribute a vital role. They were acquainted with the fact that preserving. Their existing employees to a certain extent than recruiting new ones would simply utilize the more forceful worldwide network they had access to. This was reflecting in the fresh setup where representatives of employee straightforwardly represented concerns of the employee in the board of directors. This was intended for enhancing the satisfaction level of these workers. This is since advanced levels of satisfaction enhance employee retention levels. The majority of these employees had served a lot of years in both airlines and their knowledge was very important for the success of the fresh airline company.
The management at both companies had instituted that the majority of their non-impressive performances formerly. For instance, those in 2011 that made American Airlines file for bankruptcy were primarily owing to callous market conditions. Employees had not added to the under-performance. The merger rendering the new entity to huge resources that might facilitate it to triumph over these market challenges. In actual fact, the merger was seen as a prospect where the company would present. Benefits of using The Theory of Human Relationship Management!
Explain 04:
The employees better compensation and benefits for their services. It was perceiving as an opportunity to close up the boil feuds. That had been relentless among the two companies’ management and labor unions representing workers. This was additional widespread in American airlines than at US Airways. It concludes with union representatives being integrated into. The Board of the fresh entity to make certain employee concerns were not looked down upon. Also read, Market Research Coffee of “Starbucks” Entry into China!
The retention of the majority of the employees and practically. A parallel organizational structure is owing to the effectiveness of training such personnel on leadership qualities. This is since the fresh entity would sustain minimal costs training these employees on facets of leadership because of the fact. That the airline had obtained a bigger global presence, as it turns out to be the biggest in the world. The development of leadership qualities in all its employees is decisive to the utilization of the opportunities offered by the bigger and more composite global market. Such employees are previously familiarized with the internal operations of the airline industry. As opposed to new employees that would need substantial spending on induction and training.
Nike Brand Image Case Study; Nike, Inc. is an American multinational corporation that engages in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. The company headquarters is near Beaverton, Oregon, in the Portland metropolitan area. It is the world’s largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue over US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. In 2014 the brand alone was valued at $19 billion, making it the most valuable brand among sports businesses. As of 2017, the Nike brand image value at $29.6 billion. Also learn, a Case Study on the Marketing Strategy of IBM!
Case Study on Nike Creating a Global Brand Image!
The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike, the Greek goddess of victory. Nike markets its products under its brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, and subsidiaries including Brand Jordan, Hurley International, and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) from 1995 and 2008, and previously owned Cole Haan and Umbro. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high-profile athletes and sports teams around the world, with the highly recognized trademarks of “Just Do It” and the Swoosh logo.
Nike Brand Image History!
The idea of Nike began way back in the 1950s. A track coach by the name of Bill Bowerman was at the University of Oregon training his team. Bill was always looking for a competitive edge for his runners, like most of us today look for any advantage we can get. He said he tried using different shoes for his runners as well as trying other things to try and make his athletes better. He tried to contact the shoe manufacturers in an attempt to try out his ideas for running shoes. This however failed.
1955;
In 1955 a track runner by the name of Phil Knight enrolled at Oregon. He was on the track team under Bill, Phil graduated from Oregon and acquired his MBA from Stanford University.
Phil went on to write a paper that talked about how quality shoes could makeover in Japan and they would be cheaper. He called a company in Japan and became a distributor of Tiger shoes in the United States of America. He sent some pairs of shoes to his old track coach trying to get Bill to buy the shoes. Instead of buying these shoes, Bill offered Phil a partnership to create better running shoes.
1964;
In 1964 Bill and Phil shook hands and formed Blue Ribbon Sports. The companies’ first move was to order three hundred pairs of shoes from the company in Japan. While Bill examined these shoes and tried to make them better Phil was outselling the shoes.
Bill had his track team at Oregon try out his new creations. This became the foundation of Nike. Because Bill and Phil still had full-time jobs, they hired Jeff Johnson as their first full-time employee. Jeff soon became an invaluable utility man for the company.
1971;
In 1971 Jeff created brochures, marketing materials and even shot photos for a catalog. The very first Blue Ribbon store was opened by Jeff. Meanwhile, the relationship between Blue Ribbon and the company from Japan was starting to deteriorate. Bill and Phil made the jump to manufacturing and designing their footwear. The trademarks swoosh which was introduced at this time.
The Nike line of footwear was unveiled in 1972, during the U.S. Track and Field Trials. One pair of shoes had a huge impression on a dozen multiple runners that wore the new shoes. These shoes incorporated a new style of soles that had nubs on them that resembled the ridges of a waffle iron. These shoes were also a lot less heavy than most running shoes at the time.
With the new image, Nike started looking for athletes to wear, promote and elevate the new shoes. The first athlete they found was Steve Prefontaine. Prefontaine never lost a race that was over a mile in distance in his college career between 1969 and 1973. Prefontaine challenged Bill, Phil, and their new company to stretch their talents. In turn, Prefontaine became an ambassador for Blur Ribbon Sports and Nike.
1975;
In 1975 Prefontaine died at the age of 24, but his spirit still lives on within Nike. Prefontaine became the “soul of Nike”. When 1980 hit Nike entered the stock market and became a publicly-traded company. Once this happened many of the people that started the company moved on with their lives. This included Phil Knight who resigned from his president spot for over a year. In the mid-1980s Nike started to slip from the top of its industry. This started to change when Michael Jordan released a new shoe through Nike. When this happened Nike’s bottom line got a boost.
1988;
In 1988 the slogan that we all know today “Just do it” was introduced as a way for Nike to build on its momentum from their “Revolution” campaign. The Just do it campaign included three advertisements in which a young athlete by the name of Bo Jackson was involved. By the end of the decade, Nike was at the top of their industry once again. The ’90s brought a series of outreach for Nike. At this point, Nike deepened their commitment to other sports such as soccer and golf. In 1995 Nike signed the whole World Cup-winning Brazilian National Team. This also allowed Nike to create jerseys for the team.
Nike also landed contracts with both the men’s and women’s teams for the United States. The biggest thing that Nike existed criticized for was when they signed a young golfer by the name of Eldrick “Tiger” Woods for the huge deal. All of the competition said this was a dumb idea till Tiger won the 1997 Masters by a record 12 strokes.
2000;
In 2000 a new shoe existed introduced. This shoe went by the name of the Nike Shox. This shoe combined more than 15 years of dedication and perseverance. Nike is still the industry leader in its markets and continues to grow more and more each year around the world. This company will have much more to offer in the future.
Brand Equity!
Having and holding customers is likely to be a competitive battle which each brand tries all efforts to win. They compete for functional attributes, distinctive services, or innovative technologies. So what are the emotional and functional benefits which Nike provides for their customers?
Since Nike stood set up by someone who has a deep passion for athletics and running; it should come as no surprise that the product is important. Products that are comfortable, authentic, functionally innovative, and uniquely designed. The innovative technology considers as one of the defining dimensions of Nike’s brand identity and corporate culture.
The simple driving concept has led to some impressive innovations; which consider as one of the defining dimensions of Nike’s brand identity and corporate culture. The first highlight was Air cushioning, using pressurized gas to cushion impact and new materials such as Urethane; which existed used first with the Air Max running shoes.
More recently, to obtain maximum performance, Nike Sports Research laboratory has discovered innovative technology such as Shox; which make most of rubber and spring back adding more power to a runner’s stride, and Total 90 Concept, a range of equipment to help players perform over 90 minutes of a soccer match. Such innovative technology which Nike has used has gained a stronghold in consumers’ perceptions.
The functional benefit is the fundamental and classical features to communicate with customers. However, if Nike just provided high-quality running shoes to enhance athletic performance, Nike would not be a strong brand. Big brands need to be beyond purely functional relationships. They should create a more strong emotional attachment with core consumers because emotional benefits add richness and depth to the brand and the experience of owning and using the brand.
Offers;
Nike offers emotional benefits which are “the exhilaration of athletic performance excellence; feeling engaged, active, and healthy; exhilaration from admiring professional and college athletes as they perform wearing “your brand” – when they win, you win too”.
The associated brand with the top athletes, Nike tells the story of brands whose main themes are sportsmanship and unrelenting effort. These are the story of Michael Jordan who won a record 10th scoring title and existed selected as one of the 50 Greatest Players in American’s National basketball association championship. Lance Armstrong survived and won a second straight Tour de France while Tiger Woods completed the career Grand Slam, ensuring his place in golf history at the age where most of us are still wondering what we will do when we grow up.
The most three prominent athletes have generated inspiration for the young and next generation of athletes. Nike has succeeded to transfer their inspirations to every single purchaser. Wearing every pair of Nike shoes is to engage a passion for excellence and encourage you to do your own thing. “Just do it” – the tagline could sum up all the greatest values of the brand which is.
“Just Do It” Campaign!
Products are no longer just products, they move beyond the functional meanings. Nowadays, they are social tools serving as a means of communication between the individual and his significant references. Product considers as a symbol of individuality and uniqueness, and also the symbol of affiliation and social identification. It’s particularly true with fashion brands. Fashion brands such as clothes, bags, shoes, etc satisfy opposing functions, both social identification, and distinction among individuals.
Nike must have understood the recipe well. The “Just Do It” campaign in the early 1990s would be a perfect example. Losing ground to archival Reebok which was the quick initiative on designing “style”, “fashion” aerobics shoes in the 1980s, Nike responded dramatically and forcefully by launching the “Just do it” campaign which was mainly focused on the person wearing on products instead of the product itself.
Sales;
Purchasing an athlete-endorsed product is one means of symbolically and publicly demonstrating aspirations to be a part of the group and such behaviors direct influence by the extent to which a fan identifies with an athlete endorser. Heroes and hero-worship were being built as the main themes of advertising. Celebrity endorsements such as Bo Jackson, John McEnroe, and Michael Jordon appealed to the consumer’s sense of belonging and “hipness”.
In other words, American consumers were convinced that wearing for every part of their life was smart (the shoe design for comfort) and hip (everyone else is wearing them; you too can belong to this group). “Just Do It” campaign succeeded (Nike increased its share of the domestic sports shoe business after launching this campaign in America from 18 percent to 43 percent, regained the leader position) because it could fascinate customers in both separating ways. Wearing Nike as a self-fulfilling image declaration – “if you are hip, you are probably wearing Nike”. But perhaps most importantly, it could create the desirable needs -“if you want to be hip, wear Nike”.
Brand Loyalty!
Luring by the good shoe with innovative functionality and athletic aspiration value, Nike has indeed come to the mind and heart of its customers. By the mid of the 1990s, 77 percent of male Americans from the age of 18 to 25 chose Nike as their favorite shoe. The figure remains stable despite that “up” and “down” year Nike has been experiencing, gaining the high score of customer satisfaction at 79 percent rated by The American Customer Satisfaction Index Organization.
It could say that loyalty to the Nike brand image stands driven by many external and internal factors such as brands’ subjective and objective characteristics and loyalty-building programs. One visible example of creating an innovative method to capture the strong relationships with Nike users is that creating Joga.com, a social network site for football fans.
Launching quietly in early 2006, the site became an instant hit, peaking at 7.5 million viewers when Nike showed Ronaldinho video clips. More than 1 million members from 140 countries signed up by mid-July. On this site, fans can create their blogs, build communities around favorite teams or players, download videos and organize pickup games. By enrolling consumers in building and shaping the content of the website, Nike pulled their loyal customers closer, nurtured deeper bonds of loyalty and advocacy.
Brand Awareness!
Brand awareness is the first and crucial stage of a consumer’s preference. It refers to the strength of a brand’s presence in the consumers’ minds. Nike has been successful in building awareness. The “Swoosh” symbol has been appeared everywhere, on shoes, hats, billboards, and soccer balls across the globe too remarkably to such extent that one author used the title “The Swooshification of the World” on Sports Illustrated column that imaged a future in which the swoosh could surpass sports to become a letter of the alphabet and the new presidential seal, among other things. True told the recognition of the ‘swoosh’ is extremely high.
As of 2000, 97 percent of American citizens recognized the brand logo, as the strong brand penetration. Nike could recognize consistently without the identification of the brand name, even by the youngest group (aged from 4 to 6 years old). This perhaps may reflect the general level of advertising and promotion that children expose to.
How has Nike done to build brand image awareness?
Sponsorships, advertising, and experience-focused retailing (Nike town) are three vivid channels that Nike has applied to enhance its brand image and awareness. Among these strategies, athlete endorsements could consider as the most significant success of the Nike brand image.
Nike has been invested millions of dollars to associate their brand names with easily recognizable athletes with the aim of brand image building. Athletes at the top of their respective sport such as Micheal Jordan, Tiger Woods, and Lance Armstrong who are well-liked and respected by members of the brand’s target audience chose as endorsers to associate the Nike brand image with the athlete’s celebrity image. This strategy has been paid off; for example, since Tiger Woods and Nike cooperated, annual sales for Nike Golf have exceeded nearly 500 million dollars with an estimated 24 percent growth per year in the first five years of the agreement.
International Business Machines Corporation, better known as IBM, is a multinational IT company involved in the manufacture and retail of computer hardware and software applications, and IT consulting services. The company has established itself as one of the selected information technology companies since the 19th century. Adoption of marketing strategies for IBM has been a planned structure since the 19th century and by means of these strategies, it has earned enough success all over the world. With its growth in the manufacturing as well as marketing domains of computer hardware and software, it has gained the nickname of “Big Blue”. On marketing grounds, IBM follows strict infrastructural services, added by hosting provisions and consulting services in various areas from mainframe computers to the persuasion of nanotechnology. Also learn, Tata Motors Acquisition of Jaguar and Land Rover, Case Study on Marketing Strategy of IBM!
Well – devised and efficient marketing strategies have been the key to IBM’ global success. The company strongly believes that devising effective marketing strategies requires making appropriate decisions that can well enhance all kinds of competitive advantages and can create all kinds of new sources of value for the purpose of improving the organizational revenue growth. According to Luq Niazi, Leader of Strategy and Change at IBM, “when the leaders of an organization think about their business as components, it becomes clear which ones they need to own – and which they do not”. This clearly indicates the great emphasis that IBM places on the performance and decision-making capabilities of leaders in devising effective marketing strategies. In addition, the firm also considers understanding the requirements and needs of customers as crucial for developing effective marketing strategies. Understanding the innovative demands of customers lies at the core of developing effective marketing strategies.
Based on IBM’ market share and dominance in the IT industry, the firm can be aptly described as a ‘market leader’. Being a market leader, an important marketing strategy which IBM uses against its competitors is the defensive marketing warfare strategy. The defensive marketing strategy involves the firm employing tactics to maintain its market share. There are several tactics that firms use for defending their market shares, such as fortification, counterattack, mobile defense and strategic retreat. Being the courageous market leader that IBM is, the firm adopts the best defensive marketing strategy which is “self-attack”. IBM’ strategy is “cheaper and better than IBM”. Aware of IBM’ tactic, customers wait for IBM’ new prospects as they know that the Big Blue will constantly introduce new and better products which makes the firm’ own products obsolete. Another key marketing strategy employed by IBM for sustaining its market leadership is product differentiation strategies.
Product differentiation can be achieved using a variety of factors such as distinctive products, reliability, durability, product design etc. IBM uses a product differentiation strategy based on the quality of performance. In line with its quest for further growth and market leadership, the firm adopts a diversification strategy. The importance of IBM’ growth strategy has heightened in the current economic situation with companies in the computer industry had faced a massive drop in the industrial production and productivity of computer hardware and the future growth for this segment also appearing dim. In such a context, IBM has strategically reduced its exposure to hardware by diversifying into software and services.
IBM also realizes the importance of maintaining good relationships with its customers and in line the firm lays great emphasis on trust-based marketing strategies. Trust-based marketing strategies stress the need for organizations to gain ethical hold over consumer dealings and also be honest and open about its products and the services. For IBM, adoption of this strategy has been very effective in developing its brand identity and image. In all of its marketing activities, the firm strives at building customer trust and loyalty.
IBM and E-Business Strategies!
The motive of any electronic business is to efficiently meet consumer demands through internet networking. The internet provides a medium for businesses to reach out to customers globally at very low costs. It is an exclusive means adopted through the dealings related to information and communication technologies. In case of IBM, the role of e-business is very strong. Through e-business strategies, IBM is equipping itself with all kinds of external activities and is applying determined relationships for respective business dealings; with individuals, diversified groups and corporate clients. According to ‘Who Says Elephants Can’t Dance?’; a book by a former CEO of IBM, Louis Gerstner (2003), IBM’ approach for e-Business strategies is handled by specialized e-business teams operating under IBM’s marketing department.
It is through its e-business strategies that IBM is able to link it’s internal as well as external data processing systems with greater efficiency and flexibility. E-business helped IBM in reaching closer to its consumers, conveying the message of reliability and inurn enhancing customer loyalty to the brand. The proceedings led by IBM for the development and implementation of e-business concentrate on the diversified functions occurring through electronic capabilities. IBM is also a part of the entire value chain proceeding for more profitable dominance over the local as well as global market. There are some predominant sectors where the e-business strategies are applied to gain more trust and money from the consumer. These activities are noted below;
Electronic purchasing.
Supply chain management.
Processing orders electronically.
Handling customer service, and.
Cooperating with business partners.
These proceedings add special technical standards in the e-business structure of IBM. The firm also utilizes e-business strategies to exchange of data between its partners and associate companies. As a matter of fact, the e-business strategies of IBM are not much different from the other marketing strategies. The basic difference, however, depends on the expansion of management for sending and receiving contracts from the consumer. Case Study on Corporate Governance for Satyam Scam!
It is under this strategic implementation that IBM has adopted many local dealers to be a part of its services. These dealers are of course selected through some professional modes. The reputations of these dealers are marked by IBM first before offering the partnership. In terms of services for each product sold through e-business, IBM provides appropriate training to all those people who are a part of this structure. With strategic planning, IBM is also in the dealings related to integrated intra and inter-firm business proceedings.
Importance and Use of Information in IBM Marketing Strategy!
The importance and use of information are vital to gaining success. In line, IBM adopted the strategy to take up Social Networking to the workplace. It is an absolute means of sharing ideas, complains and letters of appreciation in public. By means of adopting networking opportunities, IBM established its stronghold over competitive market. It is through the provision of Social Networking (SN), that IBM established its commitment to technology and developed an enterprise-wide SN mindset. IBM is the first major IT supplier that has got potential provisions for social networking and is in the process of changing the entire enterprise along with a credit application to address the market.
By means of investments made in the social networking domain, IBM has gained enough market strengths in the enterprise lineage, global services, deep pockets and above all in gaining loyal customers. By the success of social networking, IBM proved to be a fine player in the domain of information networking. The proceedings have added many advantages to its organizational global services. Social networking for enterprises have been implemented with enough marketing strategies and this is what is providing IBM with technical expertise in the field of organizational/adoption issues.
The launching of more facilities related to social networking is relevant to the competition of the market. The launcher came up with a new idea and launched it much before the thought had developed in anyone’ mind. The second big thing to the adoption of marketing strategy is the IBM’s mindset in the launching of Lotus Connection. It is an informal networking process with the collaboration-centric approach to social networking and helps in information sharing and uninterrupted workflow. By few minutes of exploration, anybody can well get hold over its functionalities. IBM kept it easy and user-friendly; the basics of marketing strategies. Google’s Acquisition of Motorola Mobility for Case Study!
When it comes to the use of information system in IBM, the adoption of unique kind of marketing strategies is predominant. The basic approach is in being innovative and adopting something that is very user-friendly and easy for the customer to adopt. Complicacies in the same field can lead to failure of the same. This is the reason that IBM lays emphasis on making it simple, easy and sharing more than the consumer can expect. Once there is a kind of trust and sense of being facilitated gets into the consumer, he hardly will opt for any other company and this is what IBM believes to the core. Application of innovative ideas in the field of information sharing units can be at great risk, but under the marketing strategy of IBM, this risk has been taken again and again with enough success.
Global Context in IBM Marketing Planning!
In the global context, IBM has proved itself as a strong contender by managing to sustain in the most difficult situations. It has overcome the twists and turns it initially faced in adjusting to the ‘bricks-and-clicks’ business structure. Overcoming all the hurdles IBM is now achieving milestones through the advantages forwarded by brick-and-click enterprises. It is through this enterprise structure that IBM has transformed into a major player in terms of getting hold over global marketing plans. Its formalizations are inclusive of creating a global brand blueprint. It is a mode that usually gets expressed locally and after attaining some success approaches on global grounds. IBM always follows the process of establishing the central framework and then architects the relevant consumer experiences to gain consistency with the brand.
IBM always concentrates on gaining the single view from its consumers and that helps in assessing the risk factors of global marketing strategies. In order to meet the diversified point of views, IBM follows the structure noted below;
The process of analyzing the context of ‘when’, ‘where’ and ‘how’ the appropriate and relevant customer data can be collected. This is an approach that is done under the provision of the practical market survey.
The means to create absolute governance framework with special attention led by management policies and overall practices. These are the sources that are collected through the purpose of encouraging customer centricity added by the scope to safeguard customer privacy.
Approaches led by institute consistent processes for target customer is the next step. In this process, the relationship led by the management across all the domains of sales and provided services of the organization are scrutinized professionally.
The process of appointing efficient team leaders and strong management initiators. IBM also appoints a leader who can perform as a single customer advocate and is very much accountable for all the sorted touch points.
The marketing strategies adopted by IBM to meet global demands and competitions are well inclusive of a robust infrastructure. It has the provision for optimizing flexibility and a hub-and-spoke architecture for collecting consumer demands on the global arena. There is also well-marked acknowledgment for all the innovative ways adopted by the partners of IBM. Developments attain by the partners of IBM in global terms is also directly related to the marketing strategies followed by IBM. IBM understands the fact that partners can add much hold over the local market and can reach the consumer with more in-depth formulations. This is the reason that they believe in developing the capitalized relationship with these partners for future opportunities.
Inference!
It can be well concluded that the marketing strategies adopted by IBM are very much structured on the basis of trust-based marketing strategies. It is through this theoretical approach that IBM has established itself very strongly, amidst burgeoning and very unpredictable online as well as the global marketplace. IBM concentrates on providing its consumer every possible facility that he demands and that too with very balanced services. It is more about having the trust of every single consumer, rather than having lots of them without the trust. The products and services provided by IBM can guarantee their utility to the customer’s satisfaction. In a nutshell, IBM has got professional and the courage to take a risk for innovative ideas. It explores the consumer’s domain through proper hold over the local and global proceedings.
