Tag Archives: marketing

Cases

Hide doors to be popular

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Nightjar

Most bar owners promote their places by placing a sign board outside or updating their menus on social network services such as facebook or instagram. Interestingly however, some bar owners “hide” their doors. I had a chance to visit the bar called Nightjar in London. Surprisingly, it has a super tiny metal sign on a wood door. Therefore, I passed over its entrance door several times and spent many minutes until I decided to knock on it just in case. When the hidden door opened, as expected, this bar was fully packed with drinkers.

I had a similar experience when I first visited the bar called Charles H Bar at the Four Seasons Seoul, Korea. Although this hotel is easy to find, it took me long time again to find the entrance door of the bar. Since this bar has literally no sign outside, I could not help but ask someone to guide me to the entrance door. Again, when the hidden door opened, this bar was crowded.

DML_Charles H bar door

Why did Nightjar and Charles H Bar decide to hide their entrance doors? At first glance, hiding doors fails to attract by-passers and thus fails to increase traffic, which is important for most spaces. However, this spaces may have different objectives. For instance, they want to make their spaces exclusive only for those who were invited previously. Although there is no research about space exclusivity, there are some studies about the effect of exclusivity promotion or AREP (Advertised as Retailer Exclusive Products). Contrary to managerial expectations, their findings suggest that AREP exclusivity promotions are ineffective at influencing consumers.

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Reference

Upshaw, D., Amyx, D., Upshaw, A., & Hardy, M. (2023). Do Products Labeled Retailer “Exclusive” Affect Consumer Behavior?. Journal of Marketing Development and Competitiveness, 17(3).

Many large retailers offer “advertised as retailer exclusive products” or AREPs. Retailers work with manufacturers to produce these unique, retailer exclusive versions of otherwise common products. While not all retailer exclusive products are advertised as “exclusive,” AREPs are advertised and labeled as retailer exclusives. The retailer exclusive product attributes are often “trivial,” but still may add customer value and discourage price comparison shopping. Here, two experiments assess AREPs effects on consumers. Contrary to managerial expectations, the findings suggest that AREP exclusivity promotions are ineffective at influencing consumers, but that the choice of exclusive, seemingly “trivial” attribute can sometimes be a significant negative influence on consumers. Further, the authors suggest contexts that may encourage specific responses to retailer exclusive product promotions and trivial attributes.

Cases

Do-It-Yourself chocolate kit for Valentine’s day

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DML_Valentine's day @ Fukuoka (2)

Valentines’ day is one of the most “commercially successful” holidays in Asian countries such as Japan and Korea. According to Wikipedia, this holiday was first introduced in Japan in 1936 when a company ran an advertisement aimed at foreigners.

Later in 1953, it began promoting the giving of heart-shaped chocolates; other Japanese confectionery companies followed suit thereafter. In 1958, the Isetan department store ran a “Valentine sale”. Further campaigns during the 1960s popularized the custom. The custom that only women give chocolates to men may have originated from the translation error of a chocolate-company executive during the initial campaigns. In particular, office ladies give chocolate to their co-workers. Unlike western countries, gifts such as greeting cards, candies, flowers, or dinner dates are uncommon, and most of the activity about the gifts is about giving the right amount of chocolate to each person. Japanese chocolate companies make half their annual sales during this time of the year.

Nowadays, many students around me complain expensive, poor-quality chocolates. However, some want to take this opportunity to express their feelings to others and make their own chocolates. Certainly, very few succeed in creating “the only” chocolate for their friends, colleagues, or significant others.

Recently, I met a clever solution at a Japanese department store: a do-it-yourself kit for chocolate. This is probably the best solution for those who do not want to waste money on buying ready-made chocolates but want to voluntarily invest an adequate amount of effort to create only one.

In one of my favorite research paper titled as “Why Consumers Enjoy Constrained Creative Experiences,” Darren Dahl and Page Moreau nicely articulated why DIY kits work.

DML_Valentine's day @ Fukuoka (1)

We used a combination of qualitative research and CET to understand why consumers participate in creative activities and the conditions under which they enjoy these experiences… Respondents consistently noted a motivation for personal accomplishment, which was achieved by satisfying the needs of both autonomy and competence… Importantly, this study also provides insight into the influence of external constraints (e.g., target outcomes, instructions) on consumers’ creative experiences. Indeed, the pros and cons of these creative products (e.g., kits, models, patterns, recipes) highlight the tension between consumers’ desire for instructional guidance and their need for individualism. Hobbyists value the feeling of competence that creative products provide, and they create their own strategies to overcome the constraints that such products impose on both the creative process and the outcome. (Dahl and Moreau 2007, pg. 367)

Who knows? We may see a lot of chocolate-only chefs in the near future who do not follow given instructions but use their own ingredients to develop new chocolates!

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Reference

Dahl, D. W., & Moreau, C. P. (2007). Thinking inside the box: Why consumers enjoy constrained creative experiences. Journal of Marketing Research, 44(3), 357–369.

From cooking kits to home improvement shows, consumers are increasingly seeking out products that are designed to help them be creative. In this research, the authors examine why consumers participate in creative activities and under what conditions these experiences are the most enjoyable. A qualitative study explores the diverse motivations for undertaking creative tasks and identifies the role of constraints in such endeavors. Then, the authors conduct two experimental studies to understand the importance of constraints (e.g., instructional guidance, target outcomes) in facilitating a balance between perceived competence and autonomy for consumers involved in a creative task. When consumers engage in creative activities with a sense of both autonomy and competence, they enjoy the experience more. The authors discuss implications for managers and provide opportunities for further research.

Cases

Yido, a modern Korean pottery

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Yido is a widely-known premium pottery brands in Korea. It was found by Yi, Yoonshin, a ceramic artist. She successfully established herself in the business world not only because her work reinterprets traditional Korean ceramics in refined contemporary design but also because she paid attention to the two marketing lessons.

First, she listens to market. Recently, Yido launches a new collection called Cera/Mano. Differently from other collections which has four pieces of bowls for a family of four, this newly launched collection consists in only one piece designed for single family buyers.

DML_Yido

Second, she goes beyond products. In the four-story flagship store, only one floor is dedicated to ceramic-ware sales. on other floors, a Italian restaurant, a brunch cafe, a ceramic academy, and a art and living store run. If other ceramic designers learn these marketing lessons, I assume, they will be able to become market-savvy designers.

Reference

Joo J. & Peterson, S. (2012), “Learning about innovative risk mediation strategies from entrepreneurs in creative industries,” AAG 2012, Working with Freedom: Learning about innovative risk mediation strategies from entrepreneurs in creative industries, New York.

Creative entrepreneurial ventures are characterized by uniquely personal branded offerings with enormous potential for profit, combined with huge market and execution risk. What differentiate creative entrepreneurial ventures from that of technology ventures are their dependency on a few individuals’ intangible breakthrough ideas. The absence of process control and metrics for evaluating cost, risk and required time commitment makes Return On Investment (ROI) impossible to assess.

Consequently, private investments are virtually unattainable. The subsequent extreme financial pressure combined with ineffective processes leads to destructive behaviors. Traditionally, three independent and mutually supportive approaches exist to mitigate risk and increase profit in creative ventures. These are: (1) Education: Providing market and executions knowledge and experiences through schooling, internships and apprenticeships, (2) Funding: Government and/or trade association backed with coaching and financing, and (3) Collaboration: Pooling of resources and creative talent to leverage individual talents and mitigating risk.

We propose using Design Research, Design Thinking and technology venture insights to develop methods and tools for sustainably running creative entrepreneurial ventures. First, we will identify best practices, by qualitative research within the creative fields of design, music, game, movie and art in the cultural settings of Los Angeles, Copenhagen and Seoul. Secondly, we identify knowledge transfer opportunities and conduct brainstorming sessions to synthesize new methods and tools. The outcome will be a creative portfolio management matrix, outlining how to best take ideas from concept to commercialization as a function of market and execution risk for the examined creative disciplines.

Cases

What is an advantage of having a popular first name?

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First name (or given name) is the name that identifies a specific person. It differentiates a person from other members of a group, such as a family or clan, with whom that person shares a common last name (or family name). While last name is normally inherited, first name is “free to choose” and thus can be unique.

In some countries, however, only a few options seem to be highly popular. Many of my friends who were born and live in US, UK, or Canada have common first names. In English-based countries, Coke’s massively-distributed-but-highly-customized “first name” marketing campaign will work: each bottle of coke has its own first name label such as John, Sarah, Emma, and Alex. However, popular first names seem to be avoided in other countries. Most of my Korean friends have their own unique first names. In this country, Coke marketers may find it difficult to find popular first names and launch a marketing campaign using them.

DML_London_Firstnames on Coke

Then, why do some people pick up popular first names and others avoid them?

Cases

Hands-on experience of 3D printing

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DML_3D printer (1)

Probably, I am one of few marketing people in the world who buy and use a 3D printer. I paid about $1000 and bought a printer called Rappy 32 from Stellamove two months ago and have been printing miniature buildings, animals, and mobile phone cases for fun. I want to share what I have learned about 3D printers with designers and marketers, in particular, those who are interested in but have never used them.

First of all, playing with a 3D printer woke up my “creator instinct.” Previously, I was a consumer; I simply purchased and used the products someone else created for anonymous people. After having a countless consumption experiences in my life, I came to unconsciously calculate the cost and benefit of a specific purchase behavior or habitually compared between one option and another. However, when I printed something using the 3D printer, I had a fairly different type of experience; I chose what to create and then waited until it was done. While waiting, my mental calculator did not turn on but I was overwhelmed by (some kinds of) mother-specific emotions such as wish, excitement, warm caring, and disappointment. In my opinion, printing something using 3D printers is easier and more entertaining than other professional creating tasks such as drawing and cook because it simply requires me to plan what to print at first and then fully takes care of the remaining procedures.

Second, playing with a 3D printer taught me that saying is one thing, doing is another. Many people talked about 3D printers without having any hands-on experience. Some are excited about the bright future they unfold; they can decorate cakes or replace the knobs and hooks printed at home. Others are concerned about the gloomy future 3D printers bring; someone else will print out and carry weapons or generate fake coins. However, my experience taught me that the future is not around the corner regardless of whether it is bright or dark. There are literally hundreds of issues that need to be addressed for a 3D-printer to work properly. I myself often dissatisfied with the print quality. I might have developed my taste of finishing too high (e.g., iPhones or Lego bricks).

DML_3D printer (3)

Cases

No skinny jeans, no skinny cans

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DML_HK Fashion (1)Skinny means very thin or unusually slender. Although it is a highly popular word, marketers avoid it but label their “sassier” products differently because the word, skinny, reinforces the stereotypes of women and body images. Interestingly, some items go for skinnier whereas others do not.

 

Fashion items want to be skinnier. According to J. Crew Sells “Toothpick” Jeans, Because Skinny Jeans Just Weren’t Body-Negative Enough, ” J. Crew has sensed that a lot of women are pretty over the use of the word skinny to sell everything from highly unhealthy, chemical-filled cocktails to stretch denims or it’s just an err in advertising. This clothier found that skinny jeans are not skinny enough and chosen “toothpick” to label their slimmest line of jeans.

pepsican.191ba184220.originalarticle-1355332-0D1A7ACD000005DC-295_87x249

 

This is not the case for the beverage items. Pepsi introduced a skinny can in 2011 at New York’s Fashion Week. According to the Diet Pepsi ‘skinny’ can stirs up big controversy, Jill Beraud, chief marketing officer for PepsiCo said in a statement, “Our slim, attractive new can is the perfect complement to today’s most stylish looks, and we’re excited to throw its coming-out party during the biggest celebration of innovative design in the world.” Unfortunately, it was blamed for offensiveness immediately. Within a few months, Pepsi launches new fatter skinny cans in aftermath of controversy. It fattened up its diet skinny can “with a redesign that aims, perhaps, to distance itself from a controversy that bubbled up earlier this year.”

 

Cases

Apple logo-shaped fried rice

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I ordered a fried rice after having BBQ at a local restaurant in Korea. Interestingly, She first shaped the fried rice like an apple and then placed a small fried cake on top to make it look like the Apple logo. (What if I am a fan of MicroSoft? :)) Strong brands such as Harley-Davidson and Nike seem to induce people to express their brand loyalty aggressively (e.g., tattoo). Soft brands such as Apple, however, seem to nudge their fans to express their brand loyalty more creatively or softly.

DML_Apple-shaped fried rice

Cases

Car shaped ski lift

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There is nothing much skiers can do while they are sitting on the lift. Although some chat with other skiers sitting next to them or make/receive a few phone calls, others keep quiet and desperately search for something to kill their ten-minute boredom.

I have met an interesting OOH (Out-Of-Home) advertising at Yongpyong, a Korean ski resort. The marketers of the Tiguan at the Volkswagen made its back side using paper and then attached it to the lift. Most skiers including me who take this lift cannot help but look at the rear side of this car for over ten minutes until they get off the lift and hit the slope. Cutting/painting papers like a car may not cost much but doing so seems to work; I now become very familiar with this car, at least, its back side!

More importantly, I find this advertisement interesting and infer that the brand, Volkswagen, might be interesting as well. This way of thought is well established in a classic paper in which the attitude toward the advertisement (Aad) plays a key role in shaping the attitude toward the brand.

DML_VW Tiguan
DML_VW Tiguan
DML_VW Tiguan

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Reference

Mitchell, A. A. (1986). The effect of verbal and visual components of advertisements on brand attitudes and attitude toward the advertisement. Journal of consumer research, 13(1), 12-24.

This article presents the results of a study designed to obtain a better understanding of the effects of using valenced visual information in advertising. In the study, subjects saw advertisements for hypothetical products that contained affect-laden photographs with different valences (Picture Type Manipulation). The results indicate that the affect-laden photographs had an effect on both attitude toward the advertisement (Aad) and brand attitudes; however, no differences were found in the product attribute beliefs that were formed. Photographs that were evaluated positively created more favorable attitudes toward the advertisements and brand attitudes, whereas the reverse was true for photographs that were evaluated negatively. The results of an analysis of covariance indicate that the inclusion of both the predicted attitude from structured scales (ΣΣbi,ei) and elicited beliefs did not eliminate all the reliable Picture Type effects on brand attitudes; however, the inclusion of Aad did eliminate these effects. In addition, Aad was found to affect brand attitudes for advertisements that contain only copy, and evidence is presented that Aad and brand attitudes are separate hypothetical constructs. Finally, a Dual Component model is presented to explain the effects of visual and verbal information in advertisements.

Cases

Marketing in Chinese Language

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DML_Window of the world

I have long believed that marketing is a unique business discipline because it cannot be translated into Chinese. Different from Marketing, other business disciplines have their own Chinese names: Accounting is 會計, Finance is 財務, Manufacturing is 生產, OB/HRM is 組織/人事, and Strategy is 戰略.

DML_Marketing in Chinese

Interestingly, however, marketing department at the Window of the world (世界之窗) in Shenzhen, China, was written in market (市場) department. I wish Chinese marketers either accept the English name of marketing or invent a new name of it in Chinese because marketing, the activity through which people understand a given market or create a new market, clearly differs from market.