Holiday Shopping: Black Friday/Cyber Monday 2022

Black Friday has become almost another holiday for consumers – and a challenge for marketers.  After two years shopping online, people were ready to go back to the stores.

The day after Thanksgiving saw millions of American consumers hit the stores and malls. In pre-pandemic years it was wild with crowds of shoppers piled into big box stores and malls for doorbuster promotions. But fewer people were out shopping early this year. Probably because retailers were offering Black Friday (early) deals in October to entice earlier holiday purchases (and lighten excess inventory).

Sales at brick-and-mortar stores grew roughly 18%; online purchases were up nearly 4%. Cyber Monday was definitely the biggest shopping day online with sales of $11.3 billion, an increase of 5.8% from 2021.

According to the National Retail Federation shopping survey, top gift categories are clothing, gift cards, and toys. But the national economy has an impact on spending, with most households planning to buy fewer gifts this year.

Some additional shopping highlights:

  • Shoppers spent an average of $325.44 on holiday purchases.
  • Overall shopping increased 8% from 2021.
  • Roughly 197 million shoppers visited stores or bought online between Thanksgiving and Cyber Monday.
  • Traffic in physical stores increased 17% from 2021.
  • Online spending reached more than $9 billion on Black Friday.
  • Online shoppers increased only 2.3% from 2021.

Despite inflation fears, we still like to give gifts.

What did you buy?

Group Activities and Discussion Questions:

  1. Discuss the changes in U.S. consumers’ shopping habits now that pandemic restrictions have been lifted.
  2. Poll students: What new shopping habits have the students formed?
  3. Where do they shop? Why? Online and in person?
  4. Show WSJ’s photos/article about the changes in store for Black Friday shopping: https://www.wsj.com/story/black-friday-is-back-with-smaller-crowds-5e22045b?mod=Searchresults_pos7&page=1
  5. Poll students about their shopping over Thanksgiving Week – Cyber Monday.
  6. Divide students into teams.
  7. In teams, have students tally how much they spent, which products were sought after, etc. See which teams are the biggest spenders.
  8. Have each team design a holiday sales promotion for a company of their choosing.

Source: Nassauer, S. (29 November 2022). Black Friday weekend drew millions of shoppers back to stores. Wall Street Journal.: WSJ Staff (25 November 2022). Black Friday is back, with smaller crowds. Wall Street Journal.

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Contagions Apply to Both Sickness and Health

Trends are contagious, both when they are growing as well as when they are declining. Think about it. We see new trends nearly every day, adopt them, but then just as often we quit those trends. This is not just a lone event of one person though. Social networks are strong components in helping us decide what to adopt.

According to research, many health behaviors are fundamentally contagious ideas. Basically, your social network can predict health, weight, and exercise (even stock prices). A timely case that illustrates this movement is Peloton, which reached a high during the pandemic, only to plummet a year later as the pandemic waned.

How do we get ‘infected’ with the contagion? Social networks lead consumers to catch the trend, live with it, and then move on to new trends. During the pandemic, it was all about fitness at home, online training, and connected exercise equipment. We couldn’t go to the gym and many sports were suspended, leading to more investment in home-based fitness. However, now that pandemic restrictions have been removed, we’ve gone back to the gym and sports teams.

Research conducted by the American College of Sports Medicine shows us how trends move in cycles: Pilates, Zumba, Cross Fit, spinning, and boot camps are all examples. Even exercises with staying power, such as yoga and running, move into new variants and practices to survive. Some of the top fitness trends for 2022 include:

  • Wearable technology
  • Home exercise gyms
  • Outdoor activities
  • Strength training with free weights

What trends do you think will stick around?

Group Activities and Discussion Questions:

  1. Divide students into teams. Have each team list past fitness trends they have tried?
  2. What helps a trend stick around?
  3. What leads trends to quickly fade out?
  4. Using Peloton as an example of trends, show video about Peloton’s life cycle: https://www.wsj.com/video/series/wsj-explains/why-peloton-spun-out-what-happened-to-the-bike-and-treadmill-firm/30FEB49E-85EE-4719-9B6D-F7E44D195CE5
  5. View ACSM report on fitness trends: https://journals.lww.com/acsm-healthfitness/Fulltext/2022/01000/Worldwide_Survey_of_Fitness_Trends_for_2022.6.aspx
  6. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
  7. Divide students into teams. Have each team draw a product life cycle and place various fitness and health trends into each stage.
  8. Next, have students brainstorm on how to reposition or revise products/services to that they can move into an earlier stage of the life cycle.
  9. Have teams draw a product life cycle. Place different fitness and health trends on the PLC.

Source: American College of Sports Medicine (30 December 2021). Wearable tech named top fitness trend for 2022.; Zumbrun, J. (9 September 2022). Both sickness and health, it turns out, are contagious. Wall Street Journal.

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2022 Top Global Brands

As marketers, we know that brands influence consumer purchasing decisions. But really, what is a brand? Does a brand have a financial value? Does it drive growth?

These are critical questions that drive the strategic marketing decisions of corporations around the world. In general, marketers define brand as the position that a company/product holds in the minds of the consumers. It follows then that if the brand holds a position in consumers’ minds, then it would definitely translate into a financial value for companies.

Each year, Interbrand does a financial analysis that seeks to define, in dollars, the value of a company’s brand – the result is the annual Best Global Brands ranking. In order to be included in the report:

  • The brand must be global – it must have successfully crossed geographic and cultural boundaries.
  • At least 30% of revenue must come from outside the brand’s home region.
  • The brand must have a significant presence in at Asia, Europe, and North America, as well as geographic coverage in emerging markets.
  • There must be sufficient publicly available data on the brand’s financial performance.
  • Economic profit must be expected to be positive over the longer term, delivering a return above the brand’s cost of capital.
  • The brand must have a public profile and awareness above and beyond its own marketplace.

Interbrand’s brand valuation methodology seeks to determine, in customer and financial terms, the contribution of the brand to the company’s business results. There are three key components in the methodology for the valuations: analyses of the financial performance of the branded products or services, of the role the brand plays in the purchase decision, and of the competitive strength of the brand.

Brands in the top five  in 2022 include Apple (number one for the 10th consecutive year), Microsoft (moving up a spot to number 2), Amazon, Google, and Samsung. Indeed, the top 10 brands have a cumulative brand value greater than the combined value of the 90 brands.

The fastest risers from 2022 in terms of brand value percentage change are Microsoft, Tesla, Chanel, Ferrari, Lego, Google, Hermes, and Dior. New entrants to the list in 2022 include Airbnb (#54), Red Bull (#64), and Xiaomi (#84).

How many did you correctly guess?

Group Activities and Discussion Questions:

  1. Ask students to define “brand.” What is it? Does it have value to a company?
  2. Have students take out a piece of paper. Ask them to choose what they think are the top 10 most valuable brands in the world.
  3. Then show the top 10 list from the Global Brand report: https://interbrand.com/best-global-brands/
  4. How many did they get correct? What surprised them?
  5. Show a video on the methodology used to evaluate brand value: https://youtu.be/tK2ozWQ0HA4
  6. Show students several of the sections within the site and view the videos as a class.
  7. Divide students into teams and assign each team an industry category to examine: automotive, apparel, beverage, electronics, energy, etc.
  8. Have each team present key findings from the industry sector they examined.
  9. How can these findings be applied in marketing strategies?

Source: Interbrand.com; PR Newswire

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