This week Gap introduced and then promptly pulled a new visual identity. The new logo was a rather dramatic change and consumers quickly expressed their unhappiness with the new look. Gap reversed course in just three days. The company announced the decision on its Facebook page: “Ok. We’ve heard loud and clear that you don’t […]
In my marketing strategy course at Kellogg I periodically ask students to review different marketing initiatives. The goal is to evaluate each initiative from a strategic point of view. Will it build the brand and build the business? After showing an initiative to the class, I ask students to grade it: A, B, C, D or F. […]
You might presume from the title of this post that I’m opposed to Southwest’s acquisition of AirTran. But that isn’t actually the case. I’m just confused. Why would Southwest do this? I don’t follow the logic. I can easily identify reasons why this deal isn’t a good one for Southwest. Southwest has a very distinctive and […]
Yesterday Starbucks announced that it was increasing prices. You can read an article about it here: https://online.wsj.com/article/SB10001424052748703860104575508292633972562.html?mod=crnews The announcement isn’t a surprise. The price of green Arabica coffee has risen dramatically this year; it is now close to a 13 year peak. With that sort of increase in cost, Starbucks had to do something to maintain profits. […]
Nokia continues to clean house. On Monday Nokia announced that the head of its smartphone division was leaving. This follows a change in CEOs. Rumors are that Nokia’s chairman, Jorma Ollila, will leave later this year. These moves seem very appropriate given Nokia’s stunning collapse. Several years ago, Nokia was one of the dominant global […]
Yesterday Chicago Mayor Richard Daley announced that he would not seek reelection in 2011. This was surprising news; Daley has been mayor since 1989 and would easily have won reelection to another term. Daley’s decision is a big loss for Chicago’s brand. Mayor Daley is a brand builder; he understands the power of branding and has worked […]
This week automakers released sales numbers for August. The results were dismal. According to The Wall Street Journal, sales in the U.S. fell 21% versus 2009. Sales at Nissan, GM, Toyota and Honda all fell more than 25%. These results aren’t a surprise, since U.S. government’s Cash for Clunkers program boosted sales last year. The Cash […]
The big marketing story last week was that the Gap offered a hot deal on Groupon and a remarkable 441,000 people took it. At one point Groupon was apparently selling more than 500 of the deals per minute. Groupon is an on-line promotion site. It is free to sign up and everyday Groupon sends out […]
You can learn a lot about marketing at a 4-H market pig auction. Last week I went to the Northwest Michigan Fair, a charming, old-time county fair, complete with the corn dogs, snow cones and “The World’s Biggest Alligator.” My kids and I had a grand time inspecting farm animals and studying the newest Massey […]
Procter & Gamble announced somewhat disappointing earning this week. While fourth quarter revenue grew by +4.7% to $18.9 billion, profit fell from $2.5 billion to $2.2 billion, a decline of -11.3%. The company’s stock fell by over $2 per share due to the news. P&G executives explained that the weak results were due to an […]
Yesterday while preparing for a class I read through Apple’s third quarter 2010 results. I was simply astonished. Three points of note: 1. The overall financial results are impressive indeed. Apple’s revenues were a record $15.7 billion in the latest quarter, up +61.4% versus year ago. Profits were $3.25 billion, up +77.6% versus year ago. […]
The press conference on Friday was an all too familiar scene: a somewhat grumpy CEO making a reluctant apology, noting that the press has blown things way out of proportion and complaining that the company isn’t being treated fairly, since everyone in the industry has similar problems. The company was: BP? Goldman Sachs? Toyota? Nope. […]