Monthly Archives: February 2015

Are Catalogs Still Useful?

catalogs

In the age of social media and digital shopping, is there still a place for paper catalogs? The short answer is “yes” as retailers continue to use direct mail to supplement both brick-and-mortar and online shopping. However, catalogs are not without problems and costs, including rising postage, production, and shipping expenses.

In a research study conducted by the American Catalog Mailers Association, findings included that consumers who receive and use catalogs consider them far more useful than other types of direct mail. Recipients stated that they open and look at two-thirds of the catalogs they receive each week. Almost all consumers who receive catalogs have made a purchase, and half do so within 30 days of receiving a catalog. On average, shoppers aged 55 and over receive more catalogs than younger shoppers, and women look at a higher percentage of catalogs than do men.

But do shoppers send in order forms or call 800 numbers to place orders? No. The most used method is to look at a catalog, and then purchase through the company’s Web site. Among other findings from the study was that consumers who receive catalogs spend an average of $850/year on catalog purchases. Catalogs remain a viable channel for consumers to promote goods and sell products.

Group Activities and Discussion Questions:

  1. Bring printed catalogs to class for students to examine.
  2. Poll students: How many receive catalogs? How many purchase from catalogs?
  3. Research paper from American Catalog Mailers Association:

https://www.memberize.net/clubportal/clubdocs/2129/ACMA%20Consumer%20Survey%20Final%20release.pdf

  1. For fun, show the IKEA video about its new catalog:

http://youtu.be/MOXQo7nURs0

  1. Discuss the five components of an environmental analysis (external forces on a market): social trends, technology, competition, regulatory issues, economic trends.
  2. Divide students into teams and have each team fill out a grid for the five forces.
  3. Debrief the exercise by compiling information on the white board. Does this give a good picture of the situation faced by catalogs?

Source: New York Times

Leave a comment

Filed under Classroom Activities

Target Exits Canada

Target

A little over two years ago, Target Corp. entered the Canadian market at full force, opening 133 stores and employing more than 17,000 staff. Today, the company is withdrawing from its entire Canadian operation, shuttering stores, and declaring bankruptcy protection in Canada. Depending on which news source is reporting, the loss is estimated to be between $2 billion and $5.4 billion. As Target CEO Brian Cornell stated, “Simply put, we were losing money every day.”

Losses happen. Mistakes happen. Businesses shut-down all the time. But, Target making such a giant misstep? And at such a high level? What happened?

This will be an excellent case study for years to come as business analysts examine the operation and look for clues to the massive errors. Among the more obvious errors: differences in suppliers, pricing, stock-outs, distribution network, culture, loyalty, competition, and lack of differentiation.

Group Activities and Discussion Questions:

  1. Use this case to illustrate how a SWOT analysis grid can be used by businesses. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats (internal and external factors).
  2. For entering a new market (such as Target entering Canada), break students into teams and have each team build a SWOT analysis grid. Strengths: what is company good at? Weaknesses: what needs work? Opportunities: what is going on in marketplace? Threats: what should company be wary of?
  3. Based on the analysis, what are the issues and risks that might occur?
  4. Debrief by building SWOT analysis grid on the white board.

Source: New York Times, Minneapolis Star Tribune, other news sources

Leave a comment

Filed under Classroom Activities

February 2015 – YouTube Trends Map

YouTube

If ever we forget that there are distinct differences between genders, this month’s YouTube Trends Map really highlights the difference between males and females. Each month, we highlight recent YouTube trends, and each month the different groups (gender, age, and region) show different preferences. But, this month viewers really showed a dramatic difference in the most-watched videos, skewing directly along gender lines. The most popular video watched by males (“Lars Anderson archery”) was completely different than the video watched by females (“How to mask dark under-eye circles”). What accounts for the dramatic difference, and how can marketers use this information?

YouTube posts a daily trends map based on demographics as reported by its account holders. Rankings are based on the number of views and can be separated by age, gender, and location. Through the aggregated data, YouTube Trends show us the most popular video in real time and gives ideas about trends that are developing within the YouTube viewing community. The map is a visual representation of the most viewed videos over the past 24 hours across the U.S.

Group Activities and Discussion Questions:

  1. Poll students: What are the YouTube videos they watch the most?
  2. What videos do they think are more popular for men vs. women? By various age groups?
  3. Bring up the YouTube trends map: http://www.youtube.com/trendsmap
  4. Divide students into teams. Have each team select a specific target market and geography and view the most popular videos in that area.
  5. Discuss how this information can be used by marketers.

Source: YouTube.com

Leave a comment

Filed under Classroom Activities