Tag Archives: brand management

by | Thursday, June 15, 2023 · 6:54 am

Netflix Ends DVD Service

It’s been a long time coming, but Netflix has announced that after 25 years and 5.2 billion discs, it is ending its DVD-by-mail business segment.

We can still remember how innovative Netflix was when it started its mail movie rental business using its trademarked red envelopes. Just select a movie and add it to your queue, get in the mail, and return it whenever you want. No late fees. No postage required. No driving to stores. Genius.

Netflix truly was a pioneer, first in mailing DVDs directly to homes, then in recognizing that viewers would move to Internet streaming services. At its peak in 2003, there were an estimated 20 million Netflix subscribers receiving movies in the mail.

Today, Netflix has 232.5 million subscribers around the world and is the market-leader in streaming entertainment. The company continues to evolve services, adding a tiered payment system that lowers the price for viewers willing to watch advertisements. It also plans to crackdown on password sharing starting the new tier in four markets – Canada, New Zealand, Portugal, and Spain. Netflix has stated that the revenue growth in Canada is faster than in the U.S.

Netflix also attributes its growth to new seasons of existing shows, plus original series such as “The Night Agent” along with original films  such as “Murder Mystery.”

How do you watch movies?

Group Activities and Discussion Questions:

  1. Review Netflix in class. https://about.netflix.com/en
  2. Poll students: What streaming services do they have?
  3. Pick the top services named by students. Divide students into teams and have each team research a service, including company history, revenue, types of services, prices, number of subscribers.
  4. NOTE: As an alternative, teams could prepare a SWOT analysis for each company.
  5. Next, discuss the components of a situation analysis: company, general industry, trends, key competitors, technology, legal, etc.
  6. Ask students what data they would want in order to make a marketing decision for Netflix services. What data was used to determine it was time to cancel mailing DVDs?
  7. Divide students into teams. Have each team use laptops to do general research to answer the questions above. (ex: overview of industry, size, growth, new technologies, environmental impact, etc.)
  8. Debrief the exercise. What will be the next chapter in the entertainment streaming industry.

Source:  Sperling, N. (18 April 2023). Netflix will end its DVD service, 5.2 billion discs later. New York Times.

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by | Thursday, June 8, 2023 · 7:52 am

The Wienermobile of Love – Oscar Mayer’s mobile Wedding Chapel

We love it when brands come up with unique and fun ways to market products. A recent example that comes to mind is the Cheeto Duster product – a device that turns Cheetos into ground up dust.  

And we can’t forget Taco Bell with its pop-up hotel – matched by Oscar Mayer with its Wienermobile Hotel for rent on Airbnb.

Another big success for Taco Bell is its wedding chapel in Las Vegas. Now Oscar Mayer is matching that with its own ‘Wienermobile of Love.’

Yes, folks, the Wienermobile of Love held two-days of hot-dog weddings in Las Vegas in early April. The happy couples shared a live Wiener Whistle Quartet, wedding cake (in wiener shape of course) and a ceremony performed by the company’s Hotdoggers. All expenses were paid by the company and slots quickly snatched up.

We love the concept of ‘The Wienermobile of Love ‘ – it makes a lot of sense as a promotional tactic. The Wienermobile is a celebrity on its own; the company gets thousands of requests each year to have the Wienermobile appear at proposals and weddings. It’s a three-dimensional brand ambassador that travels the country staffed by a crew of Hotdoggers. It’s big. It gets noticed. Having it become part of couples’ love stories not only brings smiles, it generates a lot of positive feelings for the brand and keeps fans loyal.

Shall we get a hot dog and tie the knot?

Group Activities and Discussion Questions:

  1. Discuss using unique promotion tactics for short time periods. 
  2. Show the Wienermobile of Love link: https://www.oscarmayer.com/elopewithus
  3. Video link: https://youtu.be/SYUeGs9kInQ
  4. Taco Bell Wedding Chapel link: https://www.tacobellwedding.com/
  5. Poll students: Would they consider a wedding at the Wienermobile? Or Las Vegas Taco Bell?
  6. Divide students into teams. Have each team select a brand that has a visible icon similar to the Wienermobile. (Example – Planters’ Nutmobile.)
  7. Have the teams develop a marketing plan to bring that icon to life in a new way. The plan should include setting SMART objectives, along with description of event and timeline.

Source:  Century, S. (13 April 2023). Oscar Mayer ‘Wienermobile of Love’ becomes the wedding venue of superfans’ dreams. Advertising Age.

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by | Tuesday, June 6, 2023 · 7:46 am

Apple Launches its First Retail Stores in India

According to the United Nations, India is on track to pass China as the world’s most populous country later this year. This is an important demographic trend for marketers to recognize; China has held the rank of the most populous nation in the world since 1950.

Along with India, the two countries combine to equal roughly a third of the world’s 7.9 billion people (and likely more by the time you read this article). However, China has an aging population, with low growth. India on the other hand has a much younger population, higher fertility rate, and decreased infant mortality.

Recognizing these trends, Apple has finally opened its first two retail stores in India –  Mumbai and New Delhi, two of India’s wealthiest cities. Until now, Apple products were sold only by third-party sellers in India, which presented its own set of problems for the company. Apple sold 6.5 million iPhones in India in 2022; compare this with the volume of 50 million a year sold in China and the U.S. China is a growing market for technology and innovation.

Of particular interest will be the iPhone pricing. The iPhone is a relatively expensive phone for consumers there. Considered a ‘premium’ product, only 11% of the market could afford iPhones. However it was also the fastest growing segment.

For all these reasons, it’s easy to understand why companies do through analysis of countries for expansion. Population size is only one indicator of potential sales. The psychographic profile is also key. India’s population is more willing to pay a premium for phones and as a ‘premium’ product,  Apple is viewed as a status symbol there.

What does Apple need to do to succeed in India?

Group Activities and Discussion Questions:

  1. Show video of opening of Apple in India: https://youtu.be/cRiSSV5pfzk
  2. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  3. Which strategy is Apple using for this new venture?
  4. Why this marketing strategy?
  5. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market Apple.
  6. Have each team determine the marketing mix (4Ps) to support their strategy choice.
  7. Debrief the exercise.

Source:  Kharpal, A. (18 April 2023). Apple opens its first store in India as it looks for a new generation of iPhone users. CNBC.; Travelli, A., and Raj, S. (18 April 2023). Apple opens first store in India, a promising frontier for the tech giant. New York Times.; other news sources.

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