[20700059 - 3rd Entry] Starbucks tale underlines marketing strategy

20700059 - Kyu Chul Kim - Entry #3

Walking along the street, you can find people holding a coffee cup with their confidence in their face. And usually that coffee brand is Starbucks. Some even say that their dreams are to become successful and start a day with a Starbucks coffee. As it is, the brand of Starbucks has become a premium brand to many numbers of people.
John Moore, a former Starbucks marketing executive, spoke to the business leaders in an Auburn Montgomery Breakfast this Friday. As a former marketing executive, he pointed out that a small company needs to look big and for large one, small, focusing one basic matter. The image of one company is a big part in business, therefore a starting company needs to look big. On the other hand, big companies need to stay focused on what their mission or vision statements are.
He gave his personal experience as an example to clarify his point. In 1990’s when the company was becoming large, its focus was out of track. The Starbucks began drive-throughs, sold stuffed animals and music records, which is irrelevant to its motto: to sell the coffee experience. Its stock went down, and the company went into serious underperformance. What he did afterwards was to retrain employees to convey the coffee experience to the customers.
He also said that his competitors were trying to undercut the price on coffee by introducing coffee products but he never really cared on that because be believed that known coffee is more important than loved coffee. He believed that everyone has different opinion and loved the way people make opinion about his former company’s product.
This article reminds me again the importance of the image-making process of a company, which is marketing strategy. Specific image would make a specific impression about a certain company. One great image will play big time for the company but a poor image can make your business go down pretty quickly. Strategic marketing plan is what each company needs in order to survive. John’s point on small company becoming big in marketing and big company acting small is one of the market strategies for a company to grow more. The small company is likely to be unknown by many people, so in order for it to be known, the image should be exaggerated. Vice versa, big companies have to go back to their original purpose of founding a company and try to focus it and fit it into their changed environment, because a company can become out of track when their size goes larger.
The reason why the sizes of cups in Starbucks are different in names were always my question but after reading this article, I’ve realized that it is for specializing the coffee shop, to say to the customers that Starbucks is a uniquely different coffee shop. I’ve realized that changing just the name of even small ones can make a whole lot different image to the company.



The journal is based on the following link:

http://www.montgomeryadvertiser.com/apps/pbcs.dll/article?AID=/20080329/BUSINESS/803290340

20700395-entry4:Do Wibro!

Summary
The company, KT has been popular by doing ‘curious marketing’. KT Wibro showing several online and offline performances has been known for mobile internet services named KT Wibro. KT shows new six commercial firms for online. The marketing team which had planned this advertisement noticed that the episodes will be posted on Wibro homepage and several famous internet portal sites. These episodes are composed of the experiences needing a mobile phone in life. Three ‘W brothers’ who performed mainly in a commercial firm describe the merit of huge contents services not to be disconnected on being moving. One of the advertisements is about a news reporter. This news reporter is covering the big monster haunting on Han river in advertisement. But he missed cars and was nervous. At that time, the W brothers helped him to send a article to a broadcasting station by providing KT Wibro and he became a exclusive news reporter. The other is about a husband who forgets a wedding anniversary on an official tour. But he could also give a wife gift through e-commercial firm by KT Wibro.

Opinion
KT Wibro got strategies to expose six advertisements at online only. Their online commercial firms are the one of various marketing strategies to conquer online markets where main consumers are and show the characters of mobile internet. The contents of advertisements are also very fresh. KT Wibro shows the situations that mobile internet is needed essentially and W brothers help them by providing KT Wibro. The situation is general thing that everybody could experience. So everyone could sympathize it and understand well. Like this, the contents of advertisements are excellent, however, it is not enough to succeed for it only. Unless consumers are interested in products through advertisements, there is no way even if very good products exist. But they succeed to get consumers’ interests. KT Wibro shows various both online and offline performances and induces participation of consumers. The marketing strategy without consumers can not succeed at all.

http://www.ddaily.co.kr/news/news_view.php?uid=32627

20700395 Haegeun Yeo

4th entry 20400347: ‘Any’ series- Branded entertainment.

This is the Video clip " Any motion"

‘Any’ series: Branded entertainment.
Summary
Branded entertainment becomes popular among big companies’ marketers. Branded entertainment is common name of the entertainment contents based on the brand name. It will be easy to understand to think about “Anymotion.” Branded entertainment is different from PPL(product in placement) in movies and dramas on the point that the company products contents by their own. In PPL, the product is artificially inserted in a certain movie or a drama which are not related to the product. However, this branded entertainment is made for only the promotion of the product itself. In this point, branded marketing is more up and coming than PPL. Branded Entertainment started with dissatisfaction of PLL. The cost increased a lot, but the effectiveness was not same as before. Samsung Anycall’s B.E was also started with that problem. Video Clip ‘any motion’ and ‘any club’ tried to restraint to use their Logo ‘Any call’, but people recognized automatically that the image of the video clip represented their brand. Branded entertainment gives some amusement. At the same time it also looks like high quality because it reveals the company’s image. The case of BMW, real famous movie directors joined in the production, Toyota in Japan, 4 top famous actors participated the branded entertainment movie. It was same as Korea. ‘Any series’ was made by Cha, Eun teack, and famous talents; Lee, Hyo-lee, Eric and so on, acted for the Video clip. One of its strength is that it does not need to force the people to see it, because they came first to see it. One of marketing department insider said that “This trend means that marketing power is moving from makers to the receivers.”
Opinion
“Ga ro bon nung” What am I just saying? That means “the intrinsic of width” in Korean. It was from Samsung Any call, when they first lunched their width phone. Its LCD screen could rotate by horizontal, and it started from Samsung first. I thought that was too big and seemed not fancy, but it was extremely successful. All the other company followed its design and tried to copy it. When people said “Ga ro bon nung” that it said Anycall, and all those kind of shape phones. It actually became a name of it. How did it work? When Samsung started lunching the phone, they were also playing the video clip “Any motion” on the music channels on and on. The “Any motion” was not just a commercial advertisement. It had a perfect story and nice characters, even the song was perfect. The street was full of this music and the entire music channel had requests to play “Any motion” Video clip and music. The ring tone and color ring (the tone of waiting) sold greatly. This was an advertisement, but it did not look like. They did not have to pay a lot to play video clip on the TV, because people came to see it. In the video, they were using “Ga ro bon nung”, and their life style looked attractive. “The entire movie is advertisement!” It was really new in Korea, and that was enough to get peoples interest. They did not stop at “Anymotion,” they kept making the other Any series, Any Club and now they are making Band “Any Band”. This Any band has their own single album and they had their own concert. The members are BoA, Tablo, Xiah in Dongbangsingi and so on. I heard that advertising is important to expose a lot to the people. In this point of view, this Branded Entertainment is a good method. The content does not need to be short as same as CF, and also it can make the people to their fan. People does not put the CF into their i-pods, but put the music and video clips. It was fresh and unprecedented try, and successful. I am wondering their next Any series.

these are my resources
http://news.naver.com/main/read.nhn?mode=LPOD&mid=etc&oid=044&aid=0000051733
Anyband
http://www.hankyung.com/news/app/newsview.php?aid=2007110703331
Anyclub
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=112&aid=0000018394
Anymotion http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=105&oid=001&aid=0000959181
Branded Marketing
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=103&oid=112&aid=0000021118

20400347 Shim Hajung

20700596 entry 4 Use and Buy

Use and buy!

20700596 Jang Jeong-Hwa

‘I-zone’ is going to enforce experience marketing to commemorate inventing their new product ‘E-Sign’ made by DID, digital information display used centralization of control. In the marketing period of time, you can use this product if you apply to the company. Then they visit and set up the high quality DID with no charge in the place where you want. Although DID is portable display, it can be used as a form that people want like a large size electric ads display. That function gives us various ways to use in accordance with each situation. So the product is also possible to use for target marketing. ‘E-Sign’ has a touch screen function. Looking the ads through the screen, customers can make use of other contents in the ads like playing a game.

Experience marketing causes effects of killing two birds with the same stone. That undertakes parts of marketing, spreading information and oral marketing to hidden customers about a new product. Specially, an enterprise that has confidence in their quality prefers experience marketing because that is the certain way made up brand image of the new product. Experience marketing strategy is helpful not only marketer but also customer because they can decide more carefully to buy or not after they use these products.

Krispy Kreme also has used experience marketing. When Krispy Kreme opens a new shop in a city, they give people thousands of free doughnuts. People make a line in order to take a free doughnut. A few people may go there just take a doughnut, but most people who go there already may have known a legend of Krispy Kreme’s doughnut. After they eat the doughnut, they are talking about the doughnut to their friends or a family. Maybe they recommend and take friend to the shop. Here is a core of Krispy Kreme’s success.

Sneezer (some talkative people spreading about a nice product or a service that they had experienced like spreading saliva when they have a cough) exposed to experience marketing becomes a second marketer of the product. The marketing strategy is so efficient because recently customer do not have a concern in many TV or radio ads because they can’t bear these a huge amount of information. So many potential buyers depend on information from their closer.
One thing that we must consider is making remarkable product first. If this precedence process do not fulfill, experience marketing may have no usefulness.

The source is http://www.newsprime.co.kr/news/articleView.html?idxno=48985