Coca Cola Life , A Healthy Addition ? – Place ( Distribution )

The Coca-Cola Company is the world’s biggest drink organization, invigorating buyers with more than 500 shimmering and still brands. Driven by Coca-cola, one of the world’s most profitable and conspicuous brands, our Company’s portfolio includes 20 billion-dollar brands including, Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitamin water, powerade , Minute Maid, Georgia and Dasani. Together with their packaging accomplices, they rank among the world’s main 10 private superintendents with more than 700,000 framework partners.

From a place and distribution point of view the coca cola company has targeted markets all around the world with particular advertisements based on the culture , language and standard of living of that particular region.

Also , commenting on the latest addition to the coca cola family , the new coca cola life has emerged with more then a few criticisms based on its marketing strategy that is to target a health conscious audience. In terms of distribution , i personally do not feel that this product can make a mark on the already existing range of products that coca cola has to offer , like the Diet coke and the zero sugar coke. With the introduction of this product , coca cola has tried to draw a line between its already existing original Coke beverage and the Coke with zero sugar.

First look - Coca Cola Life

First look – Coca Cola Life

Moreover ,

Well being specialists have blamed Coca Cola for ‘health washing’ purchasers with the dispatch of its new ‘lower-calorie’ soda as despite everything it contains everything of a grown-ups prescribed every day stipend of sugar.The soda pop Goliath’s most recent item, Coke Life, is part of the way produced using an actually sweet plant called Stevia, in an offer to target well being cognizant soda pop sweethearts.At the same time, a 330ml jar of Coca Cola Life still has 22g of sugar, likeness six teaspoons and 89 calories.At the point when contrasted with a 330ml jar of general Coca Cola which has 35g of sugar, likeness just about 10 teaspoons of sugar and 139 calories, that is 35 for every penny less sugar.On the other hand, the World Health Organization (WHO) prescribes that grown-ups of typical body mass list just eat 25g (six teaspoons) of sugar altogether every day.

My question being , if it is seriously sweet , with still a fair amount of sugar , and a reasonably large amount of calories for a small can , what makes it any different from other such offerings? Here is a picture i found where in the senior lecturer at the University of Sydney has made remark about the coca cola life being a healthy addition

“10 teaspoons of Sugar” – Beneficial or Harmful ?

In a general sense, this is around an organization propelling a sugary item to urge more individuals to expend a substance that adds to a scope of dietary and well being related issues, including diabetes. Coca-Cola gives off an impression of being utilizing the front of the administration’s disparaged obligation arrangement to search praise for drawing out an item that still contains more than 4 teaspoons of sugar for each 330ml can, which likens to one-quarter of a kid’s every day prescribed intake of sugar. As indicated by The Australian, Coke’s worldwide deals are under weight, and aggregate soda utilization in the US has declined more than 20 for every penny since 1998. In April, Coca-Cola Amatil cautioned financial specialists the organization’s assets were required to fall 15 percent for every penny in the six months to June 31.

HOW MUCH SUGAR IS IN YOUR DRINK? 
DRINK SERVING SIZE GRAMS OF SUGAR (PER SERVE) TEASPOONS OF SUGAR
Coca Cola Regular 375ml 40g 10
Coca Cola Life 375ml 27g 6
Diet Coke 375ml 0 0
Sprite 600ml 61g 15
Fanta 375ml 42g 11
Solo 600ml 72.6g 18
V Energy Drink 500ml 53g 13
Red Bull 250ml 27g 7
Gatorade 600ml 36g 9
Powerade 600ml 34g 8.5
Lipton Ice Tea: Peach Flavor 500ml 34g 8.5
Vitamin Water 500ml 27g 7

As indicated in the chart above ,in the metaphorical sense coca cola life is like the equator on earth , my point being it has more than half sugar as compared to Diet coke and just a bit more than half when compared to Regular Coke.While numerous are astonished by The Coca-Cola Company’s prerogative far from its famous red naming, there may be a much more unpretentious purpose behind it than the decency of green. The new item is said to contain impressively less sugar than regular Coke (in light of the fact that its sweetened with a plant concentrate), however doesn’t contrast positively and the two current items in the organization’s line-up. A container of Coca-Cola Life contains about 27 grams of sugar – contrasted with 40 grams in regular Coke and none in the two “eating regimen” offerings.Diet Coke and Coke Zero are sweetened with a mix of acesulfame potassium, a without calorie sweetener that is 200 times sweeter than sugar, and aspartame, additionally calorie free and 200 times sweeter than sugar.

The coca Cola life promotions based on place vary in different regions. For example here is an image clicked on southern cross station in Melbourne , Australia which advertises this new product.

“Let life Surprise you” – small yet catchy

Interestingly , from a distribution perspective Coca Cola Life has all the presence of a shopper’s choice, not an organization impulse. In reasonableness to Coca Cola, while Coke Life resembles a strategic reaction to the natural issue, it is discreetly revealing the Plant container in nine unique nations. So it is not a joke. Likewise Coca-Cola Life is bundled in the organization’s Plant Bottle, which is the first recyclable container produced using petroleum-based materials and up to 30% plant-based materials. The trust is to make a 100% plant-based container later on.

Coca cola products have been one of the top competitors in the beverage industry in the past decades but the question to be answered here is weather the introduction of coca cola life would provide a boost or is it going to fail the aspirations of the company. In terms of targeting the market , success based on distribution of the product would also contrast the pricing of the product when compared to the already existing products. The stand out factor is what will determine the success of the coca cola life , unlikely of what region the product is expected to hit. Only time will tell !

“As we tried to instill in each of our subjects over and over, WICKED is good.”The subjects being the audience or the target market and the product being Coca Cola Life along with ‘WICKED’ being the debate.

References

http://www.theguardian.com/business/2014/jun/11/coca-cola-fewer-calories-less-sugar

https://www.business.tas.gov.au/growing-and-improving-your-business/marketing-your-business/doing-a-swot-analysis/checklist-marketing,-promotion-and-distribution-channels

http://www.findingdulcinea.com/news/on-this-day/March-April-08/On-this-Day–Coca-Cola-Company-Releases–New-Coke-.html

http://radiopaedia.org/articles/coca-cola-bottle-sign

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Place (Distribution) is at the Heart of Walmart’s Success

   Sagar

Walmart is unarguably the largest and leading retailer in the global retail industry with the net sales of $482.2 billion in the financial year ending 2015. The success of the company is based on various elements and strategies, and the effectiveness can simply be noted from the fact that it serves nearly 250 million customers every week, managing and operating over 1050 retail stores across the world in over 26 countries with more than 71 brand identities and corporate banners (Walmart, 2015).sagar2

However, the moist important yet interesting fact about the Walmart is defined as its supply chain and distribution strategy which is also considered as the industry benchmark. The main reason is the fact there is no other corporate player in the global marketplace owning the similar size of business portfolio and along with such diversified market existence. It is also revealed from the research studies that the place and distribution strategy that is designed and executed by Walmart is not only the key to its success, but also a source of its competitive advantage.

The company also claims that the primary reason behind its fast pace growth, continuous financial success and diversified product, market and customer portfolio is its distribution strategy which is further supported by the logistics and operations. The effectiveness of Walmart’s distribution strategy can also be noted from the fact that it claims to be seriving more than 250 million customers every week, which in practical context can only be possible, if the strategy is truly effective (Walmart, 2015).

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The company i.e. Walmart has established highly automated and centralized distribution units which operate round the clock and 365 days. In order to ensure that customers in each of its targeted regions are served and entertained effectively, the company has established multiple distribution centres in every regional zone. For instance, in the case of United States, over 45 distribution units are established which are dedicated to import goods from around the world and ensure each of the store within the US is managed with the demanded products. These 45 regional distribution units are further supported by over 150 distribution centres that are in direct contacts with retail units across the region. It is also important to understand each of the distribution centres caters the need of 75 to 100 retail stores (Walmart, 2015). This distribution strategy can further be defined as hierarchy which operates in most unique and systemized way to ensure the errorless flow of products from the suppliers to customers at their door step.

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Taking the global distribution context into consideration, it is observed that the company in total has established 158 distribution centres which are claimed to be the keys to organisational success. Unlike any other retailer in the world, the Walmart’s distribution network is also claimed to be the world’s largest and most effective within the retail industry. Its logistics activities are performed with the help of more than 6,450 tractors and over 54,000 trailers which are operated by more than 7,000 drivers (Walmart, 2015).

sagar5Furthermore, each of its distribution centres has high-tech and modernized systems to moves hundreds of thousands of cases each day. In addition, each distribution centre caters 90 to 100 stores on average that are strategically located with an aim to provide rapid responses to the connected retail stores.

A part from the activities and operations within the context of distribution and place strategy, the company is also found to believe that its workforce assists it to generate enough power to cater its stores as well as every customer at the same time. Walmart therefore puts extra focus on its recruitment, selection, training as well as development and considers it as a part of its distribution strategy. Since the distribution activities involve the logistics too, the company ensures that each of its drivers is not only qualified, but also experienced. The strict company’s policy can be noted from the fact that it only hires drivers those have driven minimum of 300,000 accidental free miles (Walmart, 2015).

sagar 6sagar7In addition, the company also accepts its corporate social responsibility and ensures that its distribution and logistics activities are environmental friendly (Walmart, 2015). For this, the Walmart does not only follow the self-designed and self implemented code of conduct, but also ensures that the global standards in relation to corporate social responsibility are met at all times (Walmart, 2015).

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References:

Walmart, 2015, Our Story, retrieved 20th May 2015, <http://corporate.walmart.com/our-story/>

Walmart, 2015, Walmart Logistics, retrieved 20th May 2015, <http://corporate.walmart.com/our-story/our-business/logistics>

Walmart, 2015, Truck Fleet, retrieved 20th May 2015, <http://corporate.walmart.com/global-responsibility/environment-sustainability/truck-fleet>

Walmart, 2015, Reducing Carbon Emission in Our Stores and Global Supply Chain, retrieved 20th May 2015, <http://corporate.walmart.com/global-responsibility/environment-sustainability/greenhouse-gas-emissions>

By- Sagar Lakhisarani and Siyu Yue

How to win battle in this soft-drinks market–Coca-Cola

111Introduction

Last year’s sales increase, buoyed by some much-needed warm, sunny weather should serve as a reminder that this sector continues to provide opportunities for growth.Water and energy drinks stand out as the winners from 2013 and despite some of the claims by campaigners, the soft drinks industry continues to lead the way in providing choices for health-conscious consumers. Specialist food and drink consultancy, Zenith International, has been commissioned to produce the 2014 BSDA UK Soft Drinks Report. All data and insights contained in this report were produced using Zenith’s internal market databases and primary research.In compiling its research, Zenith relies on the goodwill and co-operation of companies active in the marketplace. During Zenith’s annual research into the UK soft drinks industry, over 100 soft drinks producers are contacted. This includes larger branded operators, retailer own label specialists, contract packers and a significant number of smaller independent companies.Based on individual producer volumes for the year, market sector and segment totals are calculated from the ‘bottom up’. At a sector and segment level, adjustments are then made for any double counting of contract and licensed bottling. Estimates for unauthorised soft drink imports sold through the ‘grey market’ are also included. This is more pronounced in categories such as carbonates rather than dilute-to-taste drinks, for example. The market figures presented therefore encompass all aspects of the market including: take home, impulse and on premise; water cooler volumes for the office; home dispensed carbonated soft drinks; and draught dispensed carbonates.Following a detailed review of all data files received, certain adjustments have been made to historic volumes. There is a soft drink for every occasion and consumers are entitled to choose from an ever increasing wide range of drinks. However, the industry recognises the role it can play in encouraging consumers to make healthier choices.Companies are investing heavily in sugar-free alternatives and the evidence from the first few months of 2014 suggests this is the direction consumers continue to head in.Investment in innovation and skills underpins the contribution the soft drinks industry makes to Britain’s economy. Analysis shows the wider supply chain has a value added impact of £7.7 billion and supports a total of 135,000 jobs.

Method–How to expend market share

Coca-Cola company use 5 to 6 methods for expending market share.

  1. Focus on the best lines – Coca-Cola concentrates on its most profitable lines. In 1984 77of Coca-Cola’s operating income came from soft drinks. Today the figure is 97 By selling off businesses not sharing the same attractive financial fundamentals as the soft drink business Coca-Cola now operates only in the area of high-return business.
  2. Reinvestment – Re-investing profits is the key to ongoing business development. If profits are made today it is important to make sure of a base from which profits may be made tomorrow. In the 199Os Coca-Cola has concentrated its profits on re-investment. In 1983 the company’s dividend payout ratio was 65i.e. most of its profits were paid out as dividends to shareholders. Since then Coca-Cola has been increasing dividends at a slower rate than earnings growth, so that today, 6Oof profits ($66O million in 1994) was available for reinvestment.
  3. Focus on the consumer – All successful businesses today are based on focusing on the consumer. If a company meets the requirements of its consumers (and indeed exceeds these requirements), then you have a sure-fire recipe for success.
    An important measure of success is the volume and value of sales that you make.
    The world-wide success of Coca-Cola is illustrated in the chart below:
    Coca-Cola has set out to become the world’s number one consumer marketing company by taking clear actions to differentiate their products.
  4. Differentiation with customers – The direct customers of Coca-Cola are outlets such as service stations, newsagents, leisure centres, cinemas, clubs, supermarkets and many other retailers selling soft drinks. In this area the emphasis in marketing has therefore been on providing superior delivery, promotional services and sales support. All of these elements clearly differentiate Coca-Cola as being the beverage supplier most likely to generate profits for retailers.
  5. Differentiation with consumers – The end consumers of Coke are the millions of people who consume soft drinks world-wide. Over many years Coca-Cola has expanded its markets horizontally in country after country, until there is virtually no place on earth where people do not drink Coca-Cola. Today this horizontal growth is almost total, with fewer than 20 countries not taking the product. Coca-Cola is therefore now trying to develop the brands vertically.

This simply means creating a deeper consumer desire for that brand than existed the day before. It involves giving people additional reasons to buy Coca-Cola brands instead of reasons to buy competing ones. That is the essence of differentiation. It is not an easy task, because already 5.6 billion people have a well established understanding of what Coca-Cola means to them. However, there are considerable strengths which support Coca-Cola in this task namely:

  • The trademark which is so widely known and part of the public imagination.
  • Coca-Cola is continually building on its existing expertise in marketing and consumer understanding, and is supported by access to a wealth of financial and creative resources.
  • Coca-Cola has an ‘action orientation’. Instead of waiting for change to happen it is at the leading edge, driving action forward.
  1. Win the largest market share – Being the major player in a business market is the key to business success. A company only becomes the major player in a market by being the best, and being the best means having a detailed understanding of its consumers’ requirements and then exceeding these requirements.

Once a company is a major player then it has considerable advantages to draw upon. These advantages are based on having a higher return on capital than its rivals and the opportunity to plough this return into fresh investment. Such areas for investment are marketing, product research and development, and other aspects of sound business growth.feat_coke32__01__970-630x420

Place – Success factor of ZARA

By- Hussain Bootwala

zara

Marketing is a collection to activities to transform the idea into tangible product and intangible services. Marketing mix is the crucial tool used to perform marketing activities, marketing mix refers to 4 P’s that include; product, price, place and promotion. Place is the third element of marketing mix, this refers to activities and processes used to make the product and service available to final consumer. Producer or manufacturer used different distribution channels to complete this process.

Distribution channel include different intermediaries like wholesalers, retailers, reseller, agent and franchise. Distribution options and channels are as follows:

zara 1ZARA is a well-known Spanish clothing brand famous for its quick response, which is considered as a success factor for the company and gaining competitive edge over its competitors worldwide. Fashion is all about new and trendy clothing, ZARA’s inventory management and distribution strategy are the key elements behind its quick response strategy. ZARA has outlets in 86 countries, including Europe, United States, Middle East and Asia. In 2012, Inditex the parent company of ZARA has claimed US$20.7 billion of total sales, out of which ZARA contributed 66 percent that is US$13.6 billion sales, which is a huge success.

ZARA’s outlet have new batch of clothes after every two weeks, the organization manufactures around 450 million items a year and deliver it to 1770 outlets all over the world. ZARA achieve this control and management over its placing strategy due to its strong supply chain management than many of its competitors.

zara 2ZARA has its production or manufacturing units at three distinct places. 50% of its manufacturing is done in Spain, 26% in Europe and 24% is done from Asia and even Africa. From the manufacturing units products are transported to or distributed to ZARA’s headquarter at Spain and then transferred to its outlets all around the world. ZARA’s distribution strategy is vertical integrated strategy and to follow this strategy company requires having a high amount of control from headquarter. Inditex proves to have a well-controlled management from it’s headquarter with the alignment of latest technology they make it possible to distribute its products to its outlets in minimum time frame of just 15 days. ZARA is enjoying the competitive advantage by adapting and offering the latest trend in the market with the use of Hybrid communications system which facilitates the company to produce unique and latest designs with the available material in short production time and expense.

zara 3 ZARA is following vertical integrated distribution strategy which allows ZARA to enjoy benefits like strong control, cost control, competitive advantage and differentiation. These advantages lead ZARA to be the market leader in clothing industry. ZARA is able to cut its cost and time or having cost and time control as it do not outsource its distribution, this also allows them to avoid the conflicts that usually arises because of adopting different distribution channels. Vertical integration is also serving as a point of differentiation between ZARA and its competitors, as usually retailing stores outsource its distribution and that can be the reason of delayed distribution or supply of products at retail outlets which do not happens in case of ZARA.

The company has highly competent staff which allows ZARA to produce 1200 designs per batch and make it available in stores after every two weeks, which is a big achievement and this hard work pays off ZARA in gaining reporting high sales volume. Customers visit ZARA’s outlet to check for the latest designs and trends, quick and effective distribution could be a best way to gain customer loyalty and good reputation, and these are the lessons that could be learned from the success story of ZARA. Supply chain management of ZARA can be summarized as follows:

zara 4Therefore, is can be said after analyzing ZARA’s case that it is the proof that success of any business organization depend on many factors and the most crucial is its distribution strategy or distribution channel followed by any company. Company needs to be further cautious about its distribution strategy to gain the maximum profits and maximum share in the market. On the other hand, marketing and promotion strategy is dependent on the distribution network of any company. It is very important to have a strong market analysis before adopting any strategy for the company.

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Moreover, customer is the ultimate focus of any business and all the efforts done by any business is due to its customers or selling the products for its customers. If the products do not reach to its target or potential customers then it would be useless to put so much effort on its production. Placing the right product to right people is the aim of and success of any distribution strategy. Company can get the maximum market share due to its strategy and also can lose the greater amount of market share with high quality goods at lower cost.

 

References

Dahan, G. S., & Peltekoglu, F. B. (2011). The effects of Zara to the SMEs of an emerging market. Journal of Global Fashion Marketing2(1), 1-10.

Dent, J. (2011). Distribution channels: Understanding and managing channels to market. Kogan Page Publishers.

Flylib, (2015), Supply Chain Management, accessed on 18th May 2015, available at: http://flylib.com/books/en/2.405.1.9/1/

Government of Western Australia, (2015), Marketing – Place (Distribution) Strategy, accessed on 18th May 2015, available at: http://www.smallbusiness.wa.gov.au/business-in-wa/about-sbdc/corporate-publications/business-guides/marketing-place-distribution-strategy/

Hartley, R. F., & Claycomb, C. (2013). Marketing mistakes and successes. Wiley.

Hemantha, Y. (2012). Indian Consumer’s Perception of Spanish Fashion Brand Zara. Advances In Management.

Royo-Vela, M., & Casamassima, P. (2011). The influence of belonging to virtual brand communities on consumers’ affective commitment, satisfaction and word-of-mouth advertising: The ZARA case. Online Information Review,35(4), 517-542.

Shi, H., Liu, Y., & Petruzzi, N. C. (2013). Consumer heterogeneity, product quality, and distribution channels. Management Science59(5), 1162-1176.

Alibaba forays into Online Banking Network Transform China financial industry

Featured

alibabaBy Chi S Siu  & Yan Ping Chau

“China’s finance industry, especially the banking industry, only serves 20 per cent of clients. I see the 80 per cent of businesses that have not been served,” Mr Ma, Alibaba’s outspoken founder and chairman, wrote in the People’s Daily on Aug 2013. “The financial industry needs disruption. It needs outsiders to come in and transform it.”

140911-alibaba_1502_f5f1f1d9bd6d93f0cce3929fe033ade4Mr Ma’s ecommerce group Alibaba, with its more than 500m registered users, has already reshaped the landscape in China’s retail industry. With its first foray into banking – a micro-loan business – growing quickly. Alibaba has encroached on banks’ deposit franchises with a new fund management service called Yu’e Bao, meaning “extra treasure” in Chinese, which allows Alibaba users to directly invest online cash in money market products. It is an attractive alternative to traditional bank accounts. The annualised interest is about 4.5 per cent, more than 10 times the 0.35 per cent rate on current deposits in banks but just as liquid: funds can be withdrawn at any time. Yu’e Bao notched up 2.5m users with Rmb5.7bn ($931m) of investments by the end of its first month.

On September, 2014, The China Banking Regulatory Commission finally gave approval to start a bank to a financial affiliate of Alibaba Group – Ant Financial that also is the parent company of Alipay, which processes e-commerce payments and is crucial to Alibaba’s operations. Setting up a bank would allow Alibaba’s financial affiliate to collect deposits and give it greater freedom to offer other bank-like services.

ant-financial-services-groupOn the 29th of April, Yuan Leiming, Ant Financial’s finance division’s general manager, said that Ant’s new online bank, called MYbank, is scheduled to launch in June of 2015. The launch follows Alibaba’s rival Tencent Holdings own setting up its own internet bank, WeBank, which began initial operations earlier this year. Ant Financial’s and Tencent’s new online banks are just two of several recently approved private banks, as the Chinese government looks to upgrade and modernize its largely state-owned finance industry.

The launch of MYbank is a major step in the creation of a full-fledged internet finance platform for etailer Alibaba. Moreover, this new financial platform is expected to open up services such as banking, loans and credit, insurance, payment systems and investment to hundreds of millions of Chinese who previously had limited access to financial services.

What is Alibaba? 

Alibaba is China’s — and by some measures, the world’s — biggest online commerce company. Its three main sites — Taobao, Tmall and Alibaba.com — have hundreds of millions of users, and host millions of merchants and businesses. Alibaba handles more business than any other e-commerce company.

MARKET CAPITALIZATION

Screen Shot 2015-05-17 at 7.22.53 amAlibaba became one of the most valuable tech companies in the world after raising $25 billion from its U.S. IPO. It is also one of the most valuable Chinese public companies, ranking among some of the country’s state-owned enterprises.

E-COMMERCE

Alibaba is the most popular destination for online shopping, in the world’s fastest growing e-commerce market. Transactions on its online sites totaled $248 billion last year, more than those of eBay and Amazon.com combined.Screen Shot 2015-05-18 at 8.52.53 pmScreen Shot 2015-05-18 at 8.53.58 pm

Alibaba’s IPO is the largest in the world
Screen Shot 2015-05-18 at 8.59.35 pmScreen Shot 2015-05-18 at 8.59.45 pm

Banking Distribution 2015

As per the McKinsey report – Retail Distribution 2015, it expect the typical retail bank by 2015 to have undergone a radical change in its distribution mix and to have the following key characteristics:

Fewer branches, fully digital with a personal touch: ‘One click’ processes will allow clients to get key information, order key products and pay for them with their smartphone multifunction card and on iPad.

More tailored to individual needs: The banks’s product and service offering will be tailored, providing multiple value-added services to clients with targeted market- ing campaigns based on rich CRM data.

Increasingly complex processes: Growing numbers of channels and different plat- forms for digital delivery (for example, Apple and Android) will create enormous process complexities, especially given the way customers increasingly use mul- tiple channels while expecting the process to be seamless.

Enhanced profitability (for those that get it right): the bank’s financial ratios will be much more attractive than they are today. Based on our assessment, it should be possible to reduce costs structurally by 20-40%, mainly due to lower distribution costs and changes in the distribution mix that drive down opera- tions and indirect costs. Higher investments will be needed in new technology, the costs of which can be offset by savings on legacy systems.

Reference:

Journal, WS 2015, What is Alibaba?, March 15, 2015, http://projects.wsj.com/alibaba/%3E.

 RUWITCH, PCAJ 2015, Alibaba steps up China online finance network push with new index, bank, Reuters, retrieved March 14 2015, http://www.reuters.com/article/2015/04/09/us-china-alibaba-mybank-idUSKBN0N005N20150409%3E.

 Victor Matarranz, ES, and Radboud Vlaar 2012, Retail bank distribution 2015—Full digitalisation with a human touch, McKinsey & Co, retrieved May 15 2015, http://www.mckinseyonmarketingandsales.com/retail-bank-distribution-2015-full-digitalisation-with-a-human-touch%3E.

Zhu, G 2014, Alibaba Affiliate Wins Approval to Start Private Bank 

Alipay Parent Company Wins China Regulatory Approval, The Wall Street Journal, retrieved March 13 2015 http://www.wsj.com/articles/alibaba-affiliate-wins-approval-to-start-private-bank-1411970203%3E.

Measuring the degree of corporate social media use

Facebook is a convenience tool social media tool which is very famous in terms of internet. The official report of Facebook indicates that the number of registered increasing dramatically. Though the data and analysis of Facebook itself might be unrealistic in some extent, but it does prove that Facebook plays an important part in the life of many users. Besides, many of these users prefer to log on Facebook every day in order to share what happened in their life daily, or showing their favourite like for friends, big shots and so on. It seems that Facebook could be able to consider as a representative one when talking about social media and the network. However, the definition of social media is so widely that Facebook is just one of the examples in this definition, especially in the field of marketing. In other word, social media does more than Facebook.

images

According to related researchers, social media is not restricted to social network, blogs, business networks, enterprise social network, video sharing and social gaming could all be considered as different contents of social media. Besides, social media has become one of the standards to critic whether a company is success or not. In marketing field, social media has become a compulsory part for many enterprises and business agencies’ strategy. However, it is a long way for a company assess to the area of social media. There might be many unpredicted difficulties and issues need to overcome. As an example, as the developing of technology, it is very simple to broadcast useful information to almost every corner of the world. Therefore, delaying reply users confusions or requirements may cause the customer dissatisfaction. This will lead to many customer decide to purchase other substitute productions and then resulting the decrease profit of a company would be gained. Based on the analyses, a successful combined social media and business company needs to be both of careful and adopt suitable, then evolving potential customers. By this way, an enterprise could be able to distinguish that whether the current strategies is correct and when is the most property time to response consumers and suppliers. It does very helpful in terms of related interactions of a company.

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It is worth to point out that on the corporate level, social media is not only important to decision objectives but also necessary of measuring success or not by the way of using relevant metrics. Those metrics are not limited by the number of visits, page views, members/fans, impressions, incoming links and the average time of visitors preferring to spend on websites. Besides, there is no doubt that not every single platform of social media is suitable or relevant for business. As an example, photo sharing, and social gaming might be limited to business as their specific characters. What’s more, some consumers prefer to use internet to browse some websites which focus on purchase such as Alibaba and Amazon. Although many costumers might not like some of the companies which are combined with those online purchase, but the influence of the website itself are more than those companies. As an example, though consumers may not be very sacrificed with those companies, assume the situation that their first-choice company are out of stock occurs, they might choose the company even they do not like. This is because they have been accustomed to use the website which they prefer to.

Generally speaking, just depending on by registering a simply account or an official website to complete social media for a company, is not enough. What they need to do is updating useful information regularly and trying to reactive customer in order to reach a higher communication with consumers. According to related studies, the better communication a company does, the better a company doing well in social media comparing other competitors.

facebook_like_designs

Overall, it can be told that Intel is posting the highest number of messages and uploading most videos, but receives the lowest number of views, ‘likes’, comments and shares, while Samsung Mobile’s and Disney’s posts seem to be more popular among their fans and followers.

Sources:

Aichner, T, & Jacob, F 2015, ‘Measuring the degree of corporate social media use’, International Journal Of Market Research, 57, 2, pp. 257-275, Business Source Complete, EBSCOhost, viewed 11 May 2015.

Katona, Z, & Sarvary, M 2014, ‘Maersk Line: B2B SOCIAL MEDIA–“IT’S COMMUNICATION, NOT MARKETING”‘, California Management Review, 56, 3, pp. 142-156, Health Business Elite, EBSCOhost, viewed 11 May 2015.

Shopping at ColesWorths? What’s the real cost?

Marketing Management Blog T1 2015

Fintan Magee

It’s a race to the bottom; to be the cheapest. In Woolworths parlance it’s “Cheap Cheap” whilst over at Coles aging rock-stars are pointing “Down Down” at their genitals with large red hands. The two dominant players in the Australian supermarket industry are engaged in a price war and most of us won’t bemoan the fact that both have decreased their prices over the last three years – Woolworths by 11 per cent and Coles by 6 per cent.

coles v woolcoles v woo

However, there is a cost to be borne in what most would view as healthy competition. Consider the plight of their channel partners; farmers, manufacturers, processors and distributors. Coles and Woolworths are the 19th and 15th biggest selling retailers in the world and, between them, command a staggering 74% market share of our supermarket/grocery sector. They both wield incredible power over their channel partners with a number…

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