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.
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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!
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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.
Entrepreneurial culture; According to Christopher Rea and Nicolai Volland, cultural entrepreneurship is “practices of individual and collective agency characterizing by mobility between cultural professions and modes of cultural production”, which refers to creative industry activities and sectors. Also learn, Intrapreneurs Inside an Entrepreneurs, this article explains to Creating an Entrepreneurial Culture.
Learn and Understand, The question How to Creating an Entrepreneurial Culture? are Explain.
Rea and Volland identify three types of cultural entrepreneur: “cultural personalities”, defines as “individuals who create their own personal brand of creativity as a cultural authority and leverage it to create and sustain various cultural enterprises”; “tycoons”, defined as “entrepreneurs who build substantial clout in the cultural sphere by forging synergies between their industrial, cultural, political, and philanthropic interests”; and “collective enterprises”, organizations which may engage in cultural production for-profit or not-for-profit purposes.
The relatively small amount of intrapreneurs in Latin America is due not to a lack of entrepreneurial initiative within businesses, but rather to a lack of an entrepreneurial culture in businesses. Unentrepreneurial companies are unable to generate an environment that encourages individual initiative among employees and are unlikely to attract entrepreneurial leaders. Intrapreneurs should be able to use their skills and knowledge creatively across different areas, and the company has to create a climate that encourages the development of this type of creativity. Also learn, What is Intrapreneurship? Meaning and Definition!
A business with an entrepreneurial culture is characterized by:
Having a system with information on the needs and opinions of clients.
Being at the forefront of technology and including these advances into their value chain.
Respecting individuals and the ideas that come from “lower down,” as an employee from any level can be a key player in terms of innovation.
Tolerating well-intentioned failures because they are a learning tool, although intrapreneurs must also follow the rules established for the development of new ideas.
Sharing knowledge and not allowing it to just stay within one department.
Encouraging informal networking, as creativity often happens outside of designated frameworks in excessively rigid organization designs.
Creating multi-skilled teams with different outlooks and complementary skills, mirroring what happens in the creation process in independent businesses.
Having a long-term objective, along with the pressures of a short deadline. Management allows new risky projects enough time to prove their viability.
Having available and accessible resources for the development of new projects, even though they may be high risk.
Higher management supports the initiatives and creating the conditions for intrapreneurs to strive in the development of their ideas.
Celebrating internal success. Successful intrapreneurs are the reward and recognize the organization.
An “entrepreneurial” company is one that integrates these characteristics, regardless of the people who are leading the entrepreneurial process. Thereupon, the organizations with an entrepreneurial culture achieve a balance between individual entrepreneurial initiative and a spirit of cooperation. As well as an overall innovative group identity. Thereby, the entrepreneurial culture can penetrate all levels of the organization, and the processes in the search for innovation can continue to strengthen in time.
Few Steps to creating an Entrepreneurial Culture:
Big businesses could drive economic growth and help their employees adopt entrepreneurial behaviors that foster innovation and growth by encouraging a culture of “entrepreneurialism”. The buzzword “intrapreneurs” was coined in the 1980s by management consultant Gifford Pinchot and often uses by organizations that recognize the need for new and innovative ideas.
Unlike entrepreneurs, who tend to run their own small start-up organizations, intrapreneurs usually work in larger organizations. Where they’re tasked with developing new ideas and concepts like an entrepreneur would. There’s no doubt that a successful business depends on innovative ideas and sound market strategy, but good people management is crucial to the long-term success of any business.
According to CIPD research advisor Claire McCartney, who recently authored a report on the issue.
“As start-up companies grow, it can be easy for the entrepreneurial spirit that made it so successful in the first place to wane, but the companies we’ve spoken to have proven that even the largest organizations can retain an innovative edge if they pay close attention to attracting, retaining, engaging and developing the right talent to live and breathe the values of the founders.”
McCartney said the top five secrets to entrepreneurialism success are:
Purposeful profit – It’s okay to care.
Entrepreneurs have a genuine desire to make a sustainable difference to their local communities and beyond and instill these values throughout their organizations. This clearly distances them from the sometimes unacceptable and uncaring face of larger corporates. Also Consider, How to Explain Observing Trends in Entrepreneurship?
One part entrepreneurial = 20 parts reach and impact.
Entrepreneurial organizations are not limited by their size, resource or money. Their entrepreneurial leadership and practices enable them to punch far above their weight. And, by catalyzing with other elements they create more value; clever use of social media, smart networking, and multiple strategic alliances all significantly amplify their impact and reach.
Deep and deliberate co-creation with customers.
Where entrepreneurial organizations really stand out is in their deep co-creation with clients and customers. This involvement goes way beyond simple one-sided communication to active involvement in shaping and even sponsorship of business strategy. They really listen to their customers and draw on their ideas and requirements to keep the business and brand fresh.
Headspace for innovation – support your hidden intrapreneurs.
A common theme across all the organizations involved in this research is the emphasis they place on employee innovation. They do this by supporting intrapreneurs using innovation days and cross-team working. Employees working daily with customers on the front line have the creative sparks or ideas that could really make a difference.
Go forward with failure.
Finally, fear of failure does not stop entrepreneurial organizations from doing things differently and innovating. In fact very little, if anything at all, holds back the entrepreneurial leaders and organizations featured in the report. They recognize that in order to create and innovate some failure is inevitable and realize the great potential for learning from mistakes and failures and even publicizing these as part of the learning process.
This is especially true for entrepreneurial companies, where what’s going on in the building of a business as well as a culture. Corporate culture must be led, nurtured, constantly monitored and adjusted. Much like a “culture” in a petri dish, it requires that you combine the right ingredients, in the right way, to ensure. That what you grow is not an aberration of your intentions.
Laying the Groundwork:
When I founded Net Daemons, my computer consulting company, I had very definite ideas of what I wanted to provide for our future employees. A safe and comfortable environment. Which enabled people to learn, grow and, at the same time, focus on their day-to-day work. Also learn Related to another Culture, How to explain Organizational Culture? Meaning and Definition!
From early on, I felt it was important to treat every employee with trust and respect. That meant assuming automatically that each was an honest, hard-working, reliable and dependable individual. Rather than requiring all employees show up at nine and leave at five, for example, I expected each person to do the job assigned, and to apply the right amount of time and quality of skills toward the accomplishment of each task.
While I wasn’t aware, back then, that I was creating what is now considered “corporate culture,” I knew I was looking to create a place of employment. Where employees were at once valued for, who they were and what they brought to the table. This was critical for our business, which sold knowledge and a system of collaboration between some 45 engineers providing network-administration and Internet-development solutions. If a team isn’t in sync, you can’t sell a team approach, and you’re no better than a single consultant.
What Makes a Culture Entrepreneurial?
As one of our engineers once put it, in an entrepreneurial culture, work is more than a job. It’s a lifestyle Employees are more like a team than most companies, and in some cases, we’re even a family.
Lear, What also evolved was a set of rules for creating and maintaining NDA’s petri dish. In creating your own, consider these rules:
Treat people with respect.
This is a very simple premise, which threads through each and every complicated issue that can arise within a company. Respect and trust provide the necessary base for a vibrant and sustainable corporate culture. Also take a look Difference between Leadership and Entrepreneurship!
Help employees stay healthy.
When employees get sick, they miss work, so it makes sense to offer health insurance as a benefit. We covered 100% of employee health plans. I never want an employee to experience a catastrophic illness and not cover by insurance. We also offered unlimited sick time. While I had seen this type of policy backfire elsewhere, it nonetheless allowed people to be sick when they really were sick, and not feel obligated to gobble up each “allotted” sick day. You may also want to add a wellness allowance for health-club membership.
Open doors to communication.
Create an environment where people can interact with each other, support each other and recognize each other’s efforts and achievements. Provide positive rewards for positive behavior. Share information, so that employees are aware of the direction of the company and are involved in it. Use all-hands meetings for financial and operational information, team-building, and social events. Offer incentive programs to reward effort and improve the quality of life.
Build camaraderie.
Make time for people to get to know each other and the company. We held an annual off-site meeting to build team spirit and discuss where the company was going. At such events, you can also distribute and share your business plan and discuss issues and ideas raised by your strategies.
Maintaining Entrepreneurial Culture:
Once you have healthy, trust and inform employees, don’t let the culture that’s evolving just be. It needs to watch so that it grows as you intended. The trick is standing back, but not too far back. In maintaining your culture, consider these rules.
Let the team build itself. Within that safe, comfortable, open environment, let employees grow together without being made to.
Participate without controlling. Let the culture thrive, without your either meddling with it or ignoring it.
Don’t forget the little things. Culture makes up of many small actions. When putting together, create something larger than the sum of the parts. There are many things a CEO can do to make employees feel a part of the company. Some are just common courtesies: hallway conversations, saying “hello” in the morning, opening doors, asking after people’s families and partners. Others are little extras, such as flowers to say thank you and happy-birthday e-mail messages. Eating lunch with employees, helping spouses find jobs and participating in team events show that you, the CEO, are involving with your employees.
Treating employees with respect helps enable them to do their jobs to the best of their abilities. If you challenge people to raise their bars, provide fun activities, keep people informed and humanize your management, you get culture. From these basics, you will grow in your petri dish a strong, healthy culture that will allow you, your company and your employees to flourish.
How to Creating an Entrepreneurial Culture? Also, the Image in Online,
Reference:
1. Creating – //gnp.advancedmanagement.net/article/2017/08/finding-intrapreneurs-inside-your-company 2. Few Steps – //www.insidehr.com.au/5-steps-to-building-an-entrepreneurial-culture/ 3. What Makes – //www.entrepreneurship.org/articles/2001/06/creating-an-entrepreneurial-culture 4. Photo Credit URL – //barrattgalvin.com/wp-content/uploads/2016/06/Regent-st-e1465453837129.jpg
Intrapreneurs is Inside an Entrepreneurs:Intrapreneurship refers to employee initiatives in organizations to undertake something new, without being asked to do so. Hence, the intrapreneur focuses on innovation and creativity and transforms. An idea into a profitable venture, while operating within the organizational environment. Thus, intrapreneurs are Inside entrepreneurs who follow the goal of the organization. Intrapreneurship is an example of motivation through job design, either formally or informally.
Learn, Business, Understanding Intrapreneurs is Inside an Entrepreneurs!
Entrepreneurship essay; Another important concept is the Corporate Social Entrepreneurship. Which is the intrapreneurship within the firm which is driven to produce social capital in addition to economic capital? Also learn, What is Intrapreneur? Meaning and Definition.
Understand by Example:
A classic case of intrapreneurs is that of the founders of Adobe, John Warnock, and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were frustrated because their new product ideas were not encouraging. They quit Xerox in the early 1980s to begin their own business. Currently, Adobe has an annual turnover of over $6 billion.
Employees or perhaps those engaged in a special project within a larger firm, are encouraged to behave as entrepreneurs, even though they have the resources, capabilities, and security of the larger firm to draw upon. Capturing a little of the dynamic nature of entrepreneurial management (trying things until successful, learning from failures, attempting to conserve resources, etc.) adds to the potential of an otherwise static organization. Without exposing those employees to the risks or accountability normally associated with entrepreneurial failure.
Many companies are famous for setting up internal organizations whose purpose is to promote innovation within their ranks. One of the most well-known is the “Skunk Works” group at Lockheed Martin. The group was originally named after a reference in a cartoon and was first brought together in 1943 to build the P-80 fighter jet. Because the project was to eventually become a part of the war effort, the project was internally protected and secretive. Kelly Johnson, later famous for Kelly’s 14 rules of intrapreneurship, was the director of this group.
Another example could be 3M, who encourage many projects within the company.
They give a certain freedom to employees to create their own projects, and they even give them funds to use for these projects. Genesis Grant is 3M’s intrapreneurial program which finances projects that might not end up getting funds through normal channels. Genesis Grant offers $85,000 to these innovators to carry forward their projects. In the days of its founders, HP used to have similar policies and just such an innovation-friendly atmosphere and intrapreneurial reputation. Besides 3M, Intel also has a tradition of implementing intrapreneurship.
Robbie Bach, J Allard, and the team’s XBOX might not have been feasible without Microsoft’s money and infrastructure. The project required 100’s of millions and quality talent to make the product.
Identifying Intrapreneurs:
Entrepreneurs are not born but are self-made. However, some common psychological traits make them stand out. Such as a strong will to achieve, the ability to take responsibility and risks, and the desire for independence and internal control. Also learn,What is the Difference between Leadership and Entrepreneurship?
Equally, corporate entrepreneurs tend to take initiative, accept challenges, and discover new opportunities for growth for the company that they work for. They look to be leaders and put their ideas into practice. Nevertheless, they have a lesser desire for independence and prefer the security of their work as opposed to the uncertainty of starting up their own company.
Traits intrapreneurs have in common with independent entrepreneurs: Intrapreneurs identify new opportunities for growth for the company. They develop a business model, they form teams, and they present their ideas and projects to the various evaluating committees at the company. Overall, they are aware that their success will depend on their ability to manage their network of internal supporters, namely those people who are higher up in the organization and who support their ideas.
Intrapreneurs can also identify by the following traits:
The main motivation for an intrapreneur is to achieve hierarchical independence and the possibility to move up the reward scheme within the company.
Their time orientation depends on the urgency to meet deadlines set by themselves and by the company.
Their activity is based on direct participation and team leadership instead of delegation and supervision of others.
Instead of carefully managing risks, which is a characteristic of management, intrapreneurs take moderate risks, as if they were independent entrepreneurs.
In terms of status, corporate entrepreneurs are not worried about traditional status symbols; they are looking for independence.
When making decisions, they are not dependent on superiors. They can make others agree with them to achieve their goals.
Unlike a manager, who guides others, an intrapreneur guides themselves, their clients, and their internal stakeholders.
They predominantly establish transactional relationships with others, without being left out of the organization’s hierarchy.
All companies need employees with entrepreneurial instincts, and the challenge for businesses is to include tools in their human resources policy that attract and retain people with these characteristics. Correctly managing these employees’ motivation and competitive edge will stop them from leaving the company. Whether that be to start their own business or to join another company with a more entrepreneurial culture.
How far does intrapreneurship reach?
Even though corporate entrepreneurship encompasses the strategies and practices that companies use to look for new business opportunities via the promotion and management of entrepreneurial competencies, the overall impact of intrapreneurs can see in two ways. Why is the Need Entrepreneurship for Small Business?
On one hand, they may focus on generating new business for companies, or even new companies or spin-off companies. This involves searching for new opportunities to amplify the activities of the company in terms of its related sectors, as well as the development of new products, markets, and technology. They create fresh activities within the organization. Which of course involves a larger risk of failure than the company’s business lines, as well as an overall degree of uncertainty. Firms such as P&G, 3M, Google, and more recently Tesla are clear examples of strong intrapreneurial dynamics and continuous development of new business within the companies.
On the other hand, a strategic renovation can take shape, which can imply a new combination of resources and a full transformation of the company’s foundations, changing it into a different company from what it was before. The process of strategic renovation often includes the redefining of the company’s mission, the creation of a new business model, the reformulation of the competitive base strategies, and the acquisition or generation of new competencies. The success of this process mainly depends on the entrepreneurial instinct similar to what is seen when companies are first created. With a committed entrepreneurial leader who has the same motivation, attitude, and behavior of a traditional independent entrepreneur. Some notable examples of companies in which intrapreneurial leadership has driven relevant strategic renovation are IBM, Xerox, and Lego.
“Don’t Think Intrapreneurs Are Just Like Entrepreneurs”
Most people believe intrapreneurs are simply internal entrepreneurs, and that they should expect to act in the same ways, be driven by the same motivations, and respond similarly to a wide array of circumstances. These are naïve assumptions that, more often than not, will derail intrapreneurship.
So, if that’s not exactly true, what is? We asked Larry Myler, Forbes.com columnist, for advice. Larry strongly advocates intrapreneurship as the highest form of employee engagement. As a serial entrepreneur and intrapreneur expert, he shares four fundamental Intra/entrepreneur disconnects for you to consider if you are serious about implementing intrapreneurship in your organization.
1. Risk/Reward!
Myler observes, “Entrepreneurs willingly sign up for unlimited risk or boundless reward. Not so with intrapreneurs, who take a paycheck from an organization largely to avoid financial risk, and therefore do not expect huge financial gains”.
This is the main psychographic difference between the two, and the reason why motivations (both intrinsic and extrinsic) must carefully align for intrapreneurs.”
Intrapreneurs do take more risks than your average employee and you must reward smart risk-taking. Even though the product was a complete flop, the guys who invented New Coke were given raises and promotions instead of being canned. Why?
Because Coca-Cola executives love that they were forward-thinking and were willing to take a smart, calculated risk, even if it didn’t pay off. During the Intrapreneurship Conference, you’ll get to hear about the rewards systems other companies have adopted for driving intrapreneurship.
2. Autonomy!
“Intrapreneurs by definition are not as autonomous as entrepreneurs, although they’re typically made to believe they are. They are part of a bigger organization with well-establish operations, and that means they inevitably give up some autonomy.”
According to the bureaucratic theory of organization, when everyone does his or her specialized job as directed by the boss. The whole works together and creates value for the customer and the shareholders. This sort of hierarchical coordination once worked well enough. Today, it is increasingly unworkable and become obsolete.
The intrapreneurial challenge is to find the golden path: to firmly grasp a worthwhile dream in one hand and reality on the other. During the Intrapreneurship Conference, we will hear from Noam Wekser, a Member of the Board of Oracle. On the challenge of encouraging intrapreneurial behavior in a bureaucratic classic day-to-day business environment.
3. Resource attainment!
“Entrepreneurs hire marketing, advertising, R&D, design, engineering, and sales services. They call the shots from the vantage point of the boss or customer. Intrapreneurs, however, are employees and have to negotiate for these and other resources, subject to internal availability. The upside for intrapreneurs is that funding is generally offering by the organization, while entrepreneurs struggle to cobble together necessary funding.”
What support can you offer to your intrapreneurial teams? Think of resources, brain-power, assets, and intellectual capital. It makes their job easier, drives collaboration and creativity, but especially makes it more likely they will succeed, moving your business forward.
Mentorship has proven to be one of the most effective; especially when provided by seasoned entrepreneurs. During the Intrapreneurship Conference, you’ll get to know various strategies for implementing such a mentorship program.
4. Culture!
“Entrepreneurs have the luxury of building a company’s culture from scratch. While intrapreneurs fight against a long history of many deeply held and widely. Shared beliefs and assumptions—some of which run counter to intrapreneurship itself.”
Culture – it’s a strange thing. Most innovative companies once in the market, end up following customers’ requests and fail to be able to renew their perspective. This is the classic innovator’s dilemma. Intrapreneurship strategies reveal themselves as very solid ways of quenching these structural and cultural shortcomings. By reconnecting teams that have become risk-averse to the innovation playfield. Philippe Méda will deliver a keynote on this topic.
Intrapreneurs are not just entrepreneurs who happen to work inside an organization. There are some fundamental differences in their motivations, the skills they possess, and the environment they need to thrive. If you want to know how you can implement intrapreneurship in your organization.
How to Intrapreneurs is Inside an Entrepreneurs?
Reference
1. How? – //www.mbaknol.com/modern-management-concepts/what-is-intrapreneurship/ 2. Intrapreneurs Inside Your Company – //gnp.advancedmanagement.net/article/2017/08/finding-intrapreneurs-inside-your-company 3. Just Like – //www.intrapreneurshipconference.com/intrapreneurs-are-not-entrepreneurs/ 4. Photo Credit URL – //www.raconteur.net/wp-content/uploads/2016/09/professional-development-image-Klaus-Vedfelt-Getty-Images.jpg
Following are the Importance Benefits of Corporate Retreats in Business!
Corporate retreats should handle in such a way that they are loved by everyone. Not only executives or big leagues, but also other employees should keep in mind while planning an office retreat. Office retreats have a lot of benefits, including Rewards – Corporate retreats are a good way to reward your employees. On corporate retreats, management can show their gratitude and appreciation toward their employees through many recreational and meaningful activities. Second Skill building – Besides team building, skills building is another important advantage of corporate retreats. Office retreats ensure that employees are able to build skills as well as know how to perform as a team. Why Small Business needs Corporate Retreats Good for Productivity? Now, learn Corporate Retreats in Business.
Increases in Revenue
Increasing sales and revenues are related but different goals, and each needs its own strategy. Although the tactics for each might be different, they should complement each other. Understanding how sales and revenue are related and how to balance your need to increase both helps you market efficiently and optimize your profits. What is Revenue? The income generating from the sale of goods or services, or any other use of capital or assets. Associated with the main operations of an organization before any costs or expenses are deducted. Revenue is shown usually as the top item in an income (profit and loss) statement from which all charges, costs, and expenses are subtracted to arrive at net income. Also call sales, or (in the UK) turnover.
Increase the number of new customers
After the corporate retreat, the employees will have a wider global perspective and confidence in dealing with people from different cultures and countries. With this values learn, the employees are able to increase the number of new customers. By increasing the number of new customers the organization is the most direct approach to increase the revenue of the organization. With a wider perspective, the employees are able to look into more opportunities and have a larger target market.
When the target market is enlarged the employees are equipped with the confidence in dealing with people from different cultures and countries. Which make the have better opportunities to capture the market. Also, the organization is able to increase the market share due to the huge diversity of the target market. As a result, they can be the market leader in the industry as they are able to capture the most diversity of customers.
Increase the value of each sale made to customers
The communication and influencing skills gain after the corporate retreat are able to help an organization to increase. The revenue by increasing the value of each sale made to customers. It means that the employees will have the power to communicate. Influence and persuade the customer to increase the value of each purchase. For example, if the customers normally purchase 500 units. The employees can persuade and influence the customers to increase the value of each purchase to 800 units. The employee might come out with packages to convince the customer to purchase more. Therefore, the employees can apply the innovation and creativity skill to design valuable packages to generate more revenue for the organization.
Increase the number of times that customers buy from you
Besides, corporate retreat trained employees in building and maintaining relationships. Through this skill, the employees are able to utilize this skill to generate more revenue. By building and maintaining a good relationship can increase the number of times that customers buy from you. The employees are should keep in touch with the customers so that the customers will do purchasing more frequent with you. For example, many organizations such as Hotels and Airlines which come out with loyalty cards. Where have a lot of strategies to increase the number of times you visit? There are various ways to build and maintain relationships with the customers such as e-mail, mail, text messaging, phone call and point and benefit given to attract the customers visit them often. Hence, innovation and creativity play important roles in developing strategies for building and maintaining relationships.
Decreases in Cost
What is Low-Cost? A type of pricing method where a business sets a comparatively low price in order to enhance the demand for its product among consumers, as well as its competitive position in the market. A low-cost pricing strategy is an alternative marketing approach that a business can use as an alternative to differentiation and focus pricing strategies, and it tends to be most successful when the product is fairly generic and high volume production is possible. Also, call a low price strategy.
Employee feedback for cost reduction
After the corporate retreat, the employee will motivate. So this will be the best time to get their contribution to the company. The managers can get feedbacks through personal interview, daily communication or improvement box. The reasons the managers should get feedback’s from the employees because employees have a direct relation to the work process and have more experience regarding the daily operations of the company. On the other hand, managers make cost reduction decisions based on theories such as studies, reports, and charts. But, the company has to start using feedback’s given by the employees so that they will contribute more as they feel they are part of the solution. Besides, rewarding them is very important to encourage feedback.
Decrease in Turnover Rate
The main key to decrease the turnover rate is through job satisfaction. The satisfied employees will show positive attitude and morale during the job. In order to create job satisfaction, the organization should fulfill the employees’ needs. Hence, after the corporate retreat, the employee’s relationships built or maintain, communication & influencing skills are enhanced and more towards team focus. Therefore, the employees will have job satisfaction as the company fulfilled the social need of the employees.
According to the Maslow’s hierarchy of Needs Theory of Motivation, human beings have a social need. Moreover, the employees will more loyal to the company as they feel the sense of belonging. This is because they are given attention, opportunities, and recognition in the company. According to Maslow’s hierarchy, this fulfills their self-esteem need. Besides, according to the Herzberg’s Two Factor Theory of Motivation, it wills the motivators factor for the employees which will create satisfaction. As a result of job satisfaction through the skills develop from the corporate retreat which fulfilling the need for employees, the organization will able to reduce the turnover rate in the organization. How to Get Benefits of Corporate Retreats in Organizations?
Reference
1. Importance Benefits of Corporate Retreats – //www.mbaknol.com/modern-management-concepts/benefits-of-corporate-retreats/ 2. What is Revenue? – //www.businessdictionary.com/definition/revenue.html 3. What is Low-Cost? – //www.businessdictionary.com/definition/low-cost.html 4. Photo Credit URL – //www.yourworldwithcreflo.com/wp-content/uploads/2015/01/bigstock-Group-Of-Friends-Having-Fun-To-58863764.jpg
Here are Following Tips Get Benefits of Corporate Retreats in Organizations!
Corporate retreats can be of any type, such as a sports retreat, or a seminar-style retreat. They are to promote a feeling of teamwork and to build a better understanding among company employees. Corporate retreats can also help employees gain some problem-solving skills that lead to better teamwork and better overall productivity. These team-building activities focus on events where everyone has to work together to reach a common goal.New Roles of Human Resource Management in Business Development. The study of learning, Benefits of Corporate Retreats in Organizations.
The examples are river rafting, rock climbing, mountain climbing, everyone hiking blindfolded while holding on the same rope, team scavenger hunts, friendly competitions between company departments, etc. Corporate retreats can be customized to fit the company’s need. They can make the employees learn about what the temporary retreat goals are, as well as the long-term results that the company is striving for.
Why can corporate retreats increase productivity? This is because organizations can derive some valuable skills from corporate retreats. These skills include team spirit, problem-solving, leadership, innovation, and creativity.
Team Spirit
Corporate retreats promote a feeling of teamwork among company employees. For example, a company organized a corporate retreat where the employees had to build a bridge out of boxes and unstable wooden planks. The employees are working towards a common goal which is building a bridge. This will get them to see the power of acting as a team. They will be able to understand success in each activity depends more on teamwork than individual effort. Under the pressure of reaching a difficult goal, each individual undergoes rapid growth. This growth occurs in group efforts then enhancing the relationships between employees. Employees become connected with shared experience. They share the commitment and help from one another. Trust can also build through corporate retreats.
Problem-solving
The second skill gain from corporate retreats is about problem-solving. Take rock climbing as the example. Rock-climbing is a problem-solving in the vertical world. We can see varying degrees of linear thinking skills, pre-planning skills, impulsivity vs. thoughtfulness, decision-making skills, focus and concentration, frustration, tolerance, self-confidence vs. insecurity, introversion vs. extroversion, emotional lability, risk-taking vs. caution, and the list goes on. Rock climbing offers the added mental element of continuous problem-solving in the midst of a physical workout. The climbers attempt to ascend a select route without falling. Through rock climbing, they can train on those skills.
Leadership
Through corporate retreats like mountain climbing, rock climbing, river rafting, etc. individuals gain an awareness of faith in their own ability to lead and follow. They have opportunities to test their ability in critical group decision-making and thereby become more confident leaders. Besides, team building events often allow people who are not usually in charge at work to take the reins and direct their teams. This can not only help them work on their leadership skills but also give them a better understanding of what it means to be a leader. The result of this is that they can have a better understanding of their superior’s working situations. They can also aid communication channels within the workforce.
Innovation and Creativity
Another skill derives from the corporate retreat is innovation and creativity. Employees are more able to think out of the box outside the working environment. In outdoor settings, they are taken out of their ‘comfort zone’ and immerse in a changing environment. By handling new circumstances, the team learns to turn problems into opportunities for success. Each challenge mastered is a satisfying achievement that prepares them for even more opportunities. Besides, some team-building activities may require innovation and creativity. Like the previous example, company’s corporate retreat is about building a bridge out of boxes and unstable wooden planks. In this case, in order to build a better and safer bridge with those limited resources, the employees need to innovative and creative.
Other Good Tips also Better, Benefits of Corporate Retreats
There are only two sides to a corporate retreat. It is either loved by employees or hated by them. But nevertheless, corporates retreats have a lot of different advantages to offer. Corporate retreats should handle in such a way that they are loved by everyone. Not only executives or big leagues, but also other employees should keep in mind while planning an office retreat. Office retreats have a lot of benefits, which will we discuss in this article.
Interaction
One of the major benefits of corporate retreats is team building. People may work together for years in an organization. But as soon as they go on an offsite retreat to have sun fun, new and everlasting bonds are built. It is a known fact that people tend to be their true self when they are relieved from pressure. Corporate retreats help remove this pressure and let a person open up. Every employee of an organization is considered to the same on an office retreat. There is no bias or preferences towards anyone. This makes a person feel important and he is easily able to get connect and interact with others.
Rewards
Corporate retreats are a good way to reward your employees. An informal announcement of a bonus or an incentive may come as a lovely surprise. Moreover, it will do wonders when the employees would already light head and in a fun mood. On corporate retreats, management can show their gratitude and appreciation towards their employees through many recreational activities which maybe follow with presents.
Goals and Objectives
During office hours, people are not as focus as they are on a retreat. They are their true self and can give great ideas. Moreover, due to bonding and relationships which are built on a retreat, people move in the same direction and start working to achieve the same goals and objectives. This is because, after a retreat, not only business relationships but also personal feelings come into play while working in an office.
Recruitment
Executives and HR managers also use corporate retreats as a chance to hire and recruit professionals. Corporate recruits give them a chance to learn more about the people they are thinking about hiring for the organization. As mentioned earlier, a person is his true self during a retreat. Due to this, HR managers are able to study their behavior and relationship or rapport with other employees of the organization. This will give them an idea if the newly appointed employees will be able to work in the office environment or not.
Skill building
Besides team building, skills building is another important advantage of corporate retreats. Office retreats make sure that employees are able to build skills as well as know how to perform in a team. It does not matter if you have a low budget. A short retreat in a local area will help you as much as an expensive retreat. Just make sure that you include educational as well as creative recreational activities.
Corporate retreats have the negative side too. Burger King’s corporate retreat in 2001 is a failure. A dozen Burger Kings employees burn themselves while participating in a fire walk-a team building exercise that requires teammates to walk barefoot across an 8-foot pit of burning-hot coals. The results were injuring employees and some very negative publicity for Burger Kings. The concept of this corporate retreat was that when the employees experience humiliation together, they will feel bonded. In fact, organizations should steer away from ridiculous physical challenges, and then they can get benefits from corporate retreats.
Reference
1. Benefits of Corporate Retreats in Organizations – //www.mbaknol.com/modern-management-concepts/benefits-of-corporate-retreats/ 2. Others Benefits of Corporate Retreats – //www.business2community.com/human-resources/what-are-the-various-benefits-of-corporate-retreats-0279236 3. Photo Credit URL – //www.doorwaysarizona.com/wp-content/uploads/2015/01/bigstock-Group-Of-Friends-Having-Fun-To-58863776.jpg
Small Business needs Corporate Retreats Good for Productivity with Make a Comeback!
Small business owners can improve productivity by investing in a company retreat. Simply getting away from the stressful atmosphere of the workplace can do a world of good. Your employees can work only so hard before cracking. A company retreat allows them to regroup and rediscover their passion for their work. When they return, their stress levels will be lower, meaning they’ll have the energy to work as hard as necessary without sacrificing quality.
Cooperation
Retreats that include team activities build camaraderie, training you and your workers to identify and incorporate the personal strengths of individuals to achieve group goals. The cooperative skills gained at a retreat will improve the performance of your workforce by showing employees how to work together effectively. As the owner, you might feel separated from your employees and find it hard to fit in during group activities. Hiring an outside facilitator instead of running the show yourself allows you to participate on the level of your employees, according to the book “201 Great Ideas for Your Small Business,” by Jane Applegate.
Improve Morale
Low morale hurts productivity, making workers sluggish. Often, low morale is a problem of perspective. For example, after putting in long hours to complete a difficult project, your employees might have forgotten the more pleasant aspects of their jobs. Company retreats remove workers from their typical contexts, revitalizing them and inspiring them to take pride in their work again. How Do You Know Your Company Wants Help From The Outside?
Fun
When your employees stop having fun at work, they are more likely to leave, so a company retreat can improve staff retention, according to “Rejuvenile: Kickball, Cartoons, Cupcakes and the Reinvention of the American Grown-up,” by Christopher Noxon. Having fun also stimulates creative thinking, which can improve productivity.
Communication
When workers relax, they communicate better, both with you and each other. Opening lines of communication build connections, spurring conversations that might not have happened otherwise, allowing employees to gain new perspectives on the business.
Considerations
Some company retreats have an agenda in addition to relaxation. For example, the relaxed atmosphere of a company retreat can foster effective brainstorming sessions for new company strategies. The key is to define a reasonable agenda that doesn’t overload the employees with work during the retreat. After all, the goal is to stimulate future productivity by helping your employees reconnect and relax. Asking them to do too much will decrease the retreat’s beneficial effects.
Instead, corporate retreats have transformed to perform a vital service for businesses. That ultimately generates more revenue without the wastefulness of past generations. Here’s why your business needs to budget for a corporate retreat in 2014.
It Builds Morale
Like spending vacation time, going on a corporate retreat allows. Your employees to renew their enthusiasm and excitement for work.
If your company prefers sunnier climates, a beachside retreat could provide the dose of Vitamin-D your employees need to recharge. Or, if a wilderness corporate retreat sounds more enticing, you and your employees can hold your retreat while admiring the great outdoors. It’s been found that connecting with nature can improve the work performance of your employees.
Mark Duvall of Old Man’s Cave Chalets is an advocate of such retreats:
“We see a lot of repeat business from our corporate clients. Getting away from the office and computers allows them to connect with one another and focus on high-level strategy, without the usual distractions.”
No matter where you go, the time away from the office will make your employees more excited and productive after returning to work.
It Genuinely Forges Bonds Between Your Employees
Your company may spend time trying to encourage your employees to build relationships with the office, but this often results in some common workplace challenges.
Attempts to make your employees be friends often feels inauthentic, and can actually damage your business. Plus, if your office has difficult employees, the efforts spent managing them can place. An expensive strain on company time and financial resources. There may also be very little your employees have in common with each other (other than who processes their direct deposits), limiting their incentive to build relationships.
When you spend time at the corporate retreat, however, your employees will participate in common activities they can talk about when normal work life resumes. This allows them to genuinely get to know each other better and develop authentic friendships based on shared experiences. This new found common ground will also increase their attachment to your company as an organization, decreasing expensive turnover rates.
It Provides Valuable Training
A highly-skilled team of employers means your business will run more efficiently and need less constant supervision from management. The retreat environment is the perfect place to develop creativity, teamwork, problem-solving and other valuable skills that result in increased productivity (and profits) for your company.
Plus, skill building. You can use the skill building training at retreats as a way to focus in-office training efforts throughout the year, or until the next retreat (that is, as long as your retreat includes more productive activities than three-legged races).
It Can Lure New Talent To The Team
Trying to court new employees, especially ones in high demand, takes more than a few free lunches. Inviting a prospective hire to your company’s retreat can quickly integrate her or him into your corporate culture. Show off your company’s assets in an environment that highlights company strengths and make choosing your company the natural decision. It also decreases the amount of time needed to help the new employee feel part of your team. Allowing them to begin effective work sooner.
To begin planning your corporate retreat, begin planning your budget and choosing one of the many attractive retreats along the country. Your corporate retreats don’t need to be the pinnacle of luxury retreats to be a smart investment for your company.201 Great Ideas for Your Small Business.
Reference
1. Are Company Retreats Good for Productivity – //smallbusiness.chron.com/company-retreats-good-productivity-37136.html 2. Corporate Retreats Need to Make a Comeback – //www.huffingtonpost.com/john-rampton/why-corporate-retreats-ne_b_4374384.html 3. Photo Credit URL – //community.mystar12.com/wp-content/uploads/2015/02/People-Group-2.jpeg
