martes, 21 de abril de 2009

Blog 9

COMMENT ON TONI CANDINI’S BLOG: GUERRILLA MARKETING

In this blog, I would like to comment the topic of Toni Candini’s paper, which is Guerrilla Marketing. Although I am pretty sure he is going to carry out a very good paper, my main objective is to analyze some points I have already discussed with him in order to expose some different ideas.

Guerrilla marketing can be described as an innovative marketing technique to appeal customers and persuade them. What differentiates Guerrilla marketing from other “traditional marketing techniques” is that relevant issues to success are imagination, creativity and energy rather than huge marketing budgets.

As Toni clearly explains in his blog, Guerrilla marketing is a very useful marketing tool for small businesses. Budgets needed to develop this kind of marketing campaigns are easily affordable and if it is designed properly, impact on potential customers can generate substantial improvements in brand awareness. Nevertheless, small firms are not the only ones which can take advantage of Guerrilla Marketing. From my point of view, I think that big companies can be even more effective using it because they have enough power and financial resources to use it as a complementary tool to other marketing campaigns. Thus, by using Guerrilla Marketing or other cheap marketing techniques such as viral marketing, big firms can enhance and enforce the message they want to transmit in their “more traditional campaigns”.

In his blog, he literally comments that “new generations are immunized against TV, radio or newspaper marketing campaigns, so we need to take different roads, use different tools and convince these generations by using other techniques”. Although this is a real tendency, traditional advertising channels must be taken into account for all companies, even when they want to appeal new generations because using TV, radio or newspaper marketing campaigns does not mean that these campaigns will not be appropriate to have a clear influence on new generations’ purchasing decision-making process. One clear example of what I am trying to explain is the last Heineken’s TV advertising campaign (http://www.youtube.com/watch?v=nb2nnkai_Hg) because by being creative, Heineken has been successful in convincing its target.

Another important point to highlight is the effectiveness of Guerrilla Marketing. From my point of view, companies must be careful about when they can use this technique or not because depending on the product and the target, results of a Guerrilla Marketing campaign could have a bad impact on any company’s performance. For instance, if ROLEX wanted to improve its brand awareness, Guerrilla Marketing would not be the right method to use because the niche market ROLEX wanted to appeal would never be attracted by this kind of marketing technique. Therefore, before using Guerrilla Marketing, companies need to analyze their target in order to see if its use is coherent with their objectives or not.

Summarizing, Guerrilla Marketing can be useful to all kind of companies; small ones can be more easily recognized while big ones can use it as a complement of other marketing campaigns. However, companies must understand that although its benefits are commonly recognized, this is just another marketing tool that should be used only when it is required.

jueves, 9 de abril de 2009

Extensive paper outline

Zara

Is it common for you to think that the most expensive should always be the best option? I thought it until I met Zara.

1) Introduction

a) The Fashion Industry

b) The company

Zara is one of the largest international fashion companies with stores almost around the world. Its strategy and the way the company understand the industry has dramatically changed “the fashion background”, and now competitors must adapt their strategies to every Zara’s movement. Therefore, it is very interesting to observe the differences between Zara’s and the other competitors’ strategies so as to identify a different but effective way to do business and gain customer insights.

c) Zara’s current strategy vs. the traditional retailer

Zara differs from its competitors due to its core competences that provide them with a competitive advantage in the industry. Usually, traditional retailers in the industry outsource their production to concentrate only on distributing and retailing. Nevertheless, Zara works on the whole value chain, which means that they are able to have much more influence and control over the industry than its competitors.

2) Body

a) What makes Zara appeal to customers?

The key point to Zara’s success is that every time potential customers go to Zara, they realize that what they saw two weeks before is not in the store anymore. Controlling the whole value chain, Zara is able to be flexible in the variety, amount and frequency of the new clothing designs produced. Therefore, as customers only have a few opportunities to get the product wanted, purchasing in Zara becomes a unique and unrepeatable experience for them.

b) What makes Zara special?

When comparing Zara to a traditional retailer, the key point to understand differences is the climate of scarcity created in Zara’s stores. This allows them to minimize costs to sell their items at full price. In other words, they don’t have to reduce prices once merchandises become obsolete. Moreover, they take advantage of its quickness so as to respond to the demand better than competitors.

c) Gaining insights or “creating” insights

One of the features of Zara’s strategy is that they don’t have a strict department of marketing. By developing Zara’s philosophy, they can anticipate and persuade the customer habits. Therefore, they don’t follow fashion trends, they just create them.

3) Conclusion

Zara’s ability to control the whole value chain allows them to be the most efficient in the industry. This can be seen, among others, in the marketing strategy they follow which let them the opportunity to lead the whole market and persuade customer habits.