Monthly Archives: August 2017

by | Wednesday, August 23, 2017 · 10:23 am

Changing Cigarette Packaging

Does packaging make a difference? With the recent change in European regulations for cigarette packaging, the tobacco companies hope that packaging doesn’t matter, while consumer health advocates hope it does make a difference.

The change in Europe is new EU legislation that determines how tobacco products are manufactured, produced, and sold across Europe. The revised rules, named the Tobacco Products Directive, ban flavored cigarettes as well as describe standardized packaging of tobacco products to minimize the impact of brand images, logos, colors, and names. The result is a standard package with sickly colors, standardized font and text, and very unattractive images of how smoking impacts consumers’ health.

Since packaging is part of marketing and advertising, the new regulations remove brand features and increase the size and type of health warnings. It is hoped that the new packaging will reduce the attractiveness of smoking, particularly to young people.

Will the new packaging matter?

Group Activities and Discussion Questions:

  1. Poll students: Who smokes, how much, when did they start?
  2. Discuss the role of packaging in branding and advertising.
  3. View the EU Tobacco Products Directive Web site: https://ec.europa.eu/health/tobacco/products_en
  4. View video about the directive: https://youtu.be/UPNwVsj1bCw
  5. Discuss the new packaging with students. How might it impact consumer behavior? Would the new package change any of their habits?

Source:  Brandchannel.com

 

Leave a comment

Filed under Classroom Activities

Tagged as , , , , ,

by | Friday, August 18, 2017 · 6:08 am

Economics of Airline Class Seating

Plane fares are frustrating. From the time someone searches for a flight in the morning, until they book it later in the week (or day), the price changes. And don’t even get started about how little leg-room and seat space there is in the economy class section! But then again, the economy class is not how airlines make money. How does an airline make money on fares?

First class and premium cabin seats!

Here is an example of a flight’s pricing: British Airways 777, round-trip, non-stop between London and Wash. D.C.

  • 224 seats total
  • 122 economy seats @ $876/seat = $106,872
  • 40 premium economy seats @ $2,633/seat = $105,320
  • 48 business class seats @ $6,723/seat = $322,704
  • 14 first class seats @ $8,715/seat = $122,010

The front sections of the plane account for 45% of the seats, but generate 84% of the revenue! While this model does not always hold true, in general airlines get 66% of revenue from the premium, business, and first-class seats.

In essence, airlines are able to sell the same service (transportation) to different people, at vastly different prices (enhanced amenities and the onboard experience). Airlines realized that passengers could be segmented into two categories: tourists, and business people.

What else will future air travel hold?

Group Activities and Discussion Questions:

  1. Pricing is usually a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  2. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  1. Show this video that explains the basic economics of airfare:
  2. https://youtu.be/BzB5xtGGsTc
  3. Draw the price structure on the board.
  4. Divide students into teams. Have each team work on a possible re-design of planes to address more market segments.

Source: Wendover Productions, YouTube

Leave a comment

Filed under Classroom Activities

Tagged as , , , , , ,

by | Wednesday, August 16, 2017 · 6:05 am

10 Healthiest Brands in the U.S.

What makes a healthy brand? According to YouGov Brand Index, overall brand health takes into account “consumers’ perceptions of a brand’s quality, value, impression, satisfaction, reputation, and willingness to recommend the brand to others.”

Which brands are ranked the healthiest? There are few surprises in this year’s list. Here are the top brands across all categories:

      1. Band-Aid
      2. Amazon
      3. Google
      4. Craftsman
      5. Dawn
      6. YouTube
      7. Clorox
      8. M&M’s
      9. Lowe’s
      10. Quaker

The index also included ranks for various industries. For example, in airlines, Southwest ranked number one. Toyota topped the car category, and Dove topped the hair and skin care category.

Top brands with the best advertising awareness were also included. Leaders in this year’s list include Geico, McDonald’s, Verizon, AT&T, and Walmart. Brands that made the biggest awareness gains since 2016 include Uber, Blue Apron, Trivago, Dollar Shave Club, Lyft, Hulu, and Nintendo. Consumers value innovation and usefulness when evaluating brands. Each company on the list works hard to be the top in its category.

Which brands do you value and recommend to others?

Group Activities and Discussion Questions:

  1. Class discussion: What makes for a strong brand?
  2. What are favorite brands in the different industries such as automotive, appliances, cars, hotels, food, etc. (see the industry list on YouGov).
  3. Show the YouGov brand index: http://www.brandindex.com/ranking/us/2017-index
  4. Compare the students’ list with the rankings and discuss the findings.
  5. Now have students list brands that are weak or for which they have negative feelings.
  6. What could those brands do to improve their overall rankings?

Source:  YouGov Brand Index, Brandchannel.com

Leave a comment

Filed under Classroom Activities

Tagged as , , , , ,