Defensive Strategy

Thrilled to Make $11 an Hour at Apple

26 Jun 2012  

The New York Times ran a fascinating article on Sunday about Apple’s store employees. I pasted the link below. The article focused on a rather interesting situation: Apple manages to hire highly skilled and motivated people despite paying them about $11 per hour and providing no real career path. These people could likely make far […]

Defensive Strategy

Learning from Michael Francis

20 Jun 2012  

You can learn a couple important things from J.C. Penney’s Michael Francis. Francis, of course, was President of J.C. Penney until he abruptly departed earlier this week. He was at the company for about eight months.   Learning number 1:  It is all about the results. J.C. Penney is in the middle of a major […]

Career Advice

Advice for the Graduates

14 Jun 2012  

Tomorrow more than 500 students will graduate from Kellogg. Many of them are my students; I’ve had the joy of teaching almost half of the group in my marketing strategy and biomedical marketing courses. I’ll be at the ceremony but I won’t be addressing the students tomorrow; I was a finalist for professor the year […]

Defensive Strategy

J.C. Penney Retreats

8 Jun 2012  

J.C. Penney is in the midst of a major transformation. As I noted a couple weeks back, the company is moving away from its reliance on discounts; J.C. Penney has lowered everyday retail prices and is doing less price cutting. This year the company stopped using the word sale entirely, instead focusing on what it called “month-long […]

Brands in the News

Sara Lee becomes Hillshire Brands

5 Jun 2012  

Sara Lee announced today that it is changing its name to Hillshire Brands after it spins off its coffee division. This is a smart move but I wonder if the executives at Hillshire missed an opportunity. There was little chance the company would keep the Sara Lee brand. Sara Lee is closely associated with frozen desserts, […]

Brands in the News

Apple’s Big Expectations

30 May 2012  

According to CEO Tim Cook, Apple will soon be launching some amazing new products. Yesterday at the D: All Things Digital conference Cook said, “The juices are flowing. We have some incredible things coming out.” Cook is clearly raising expectations for the new products. You don’t use the words amazing and incredible lightly. Is this a […]

Super Bowl

GM’s Odd Super Bowl Decision

24 May 2012  

General Motors announced last week that it will not buy any spots for the 2013 Super Bowl. This is a fairly surprising decision because this year  General Motors made a huge investment in the Super Bowl; GM ran four spots, including three for Chevrolet and one for Cadillac. The company also spent an enormous amount […]

Defensive Strategy

Good News for the Coffee Industry

18 May 2012  

We got a lot of rather tough news this week, from more financial issues in Europe to slumping sales at J.C. Penney. But it was a good week for the coffee industry: the New England Journal of Medicine published a study showing that coffee consumption had a positive impact on mortality.  And the more you coffee […]

Defensive Strategy

J.C. Penney’s Predictable Stumble

15 May 2012  

Retail giant J.C. Penney reported some fairly grim results today. Fiscal first-quarter sales fell a remarkable 20%, the company lost $163 million and it suspended its dividend. The news apparently caught many investors by surprise; the stock dropped more than 10%. But if you’ve been following J.C. Penney the results are quite predictable. There is nothing […]

Brands in the News

Lipitor, Pfizer and Pharma’s Branding Problem

11 May 2012  

The Wall Street Journal reported this week that Pfizer is giving up on Lipitor, dramatically cutting back on marketing support. This isn’t surprising. Lipitor, Pfizer’s multi-billion dollar cholesterol lowering medication, lost patent protection at the end of 2011. A number of generic medications will soon enter the market, so Lipitor won’t be able to maintain […]

Brands in the News

Best Buy and the Great Amazon Tax Subsidy

8 May 2012  

Best Buy is certainly struggling.  The company’s stock was above $50 per share back in 2007.  Today it is trading at about $20. The company is closing stores and analysts are skeptical about the future. The company has a number of issues to address but I suspect the most important issue is what I call the […]

Defensive Strategy

Marketing Strategy Review: Nespresso

4 May 2012  

Earlier this week Nespresso announced that it was investing in its first national television campaign in the United States. This is big news. Nespresso, of course, is Nestle’s remarkable growth engine, a highly profitable business with 2011 sales of over $3 billion, growing about 20 percent per year. The national television advertising is a big […]