Tag Archives: environment scan

Culture Wars Impact Retailers

The world can be a tricky place for marketers and brands these days. Cultural differences can cause a big backlash when too many consumers take offense at certain topics that are endorsed by brands. It is a difficult balance that sometimes tips over to the negative.

Recently companies including Walt Disney, Anheuser-Busch, and Target have faced opposition to their support of the gay and trans communities. For example, June is Gay Pride Month and while many consumers and companies (such as Target, Walmart, Kohl’s, and JC Penney) fully support the issue, others may take an opposite view.

Target’s controversy relates to clothing, décor, and other Pride items which it was selling in support of gay and trans-gender rights. While the company has embraced the topic and products for a number of years, this year it went sideways. In some stores customers knocked down displays, threatened store employees, and posted on social media in opposition to the products.  

In response to the controversy, Target moved its Pride products away from the front of the store and pulled several products from sale, all in response to fears about employee safety. The response to Target’s move was disappointment from many consumers and organizations that supported gay rights.

How should we deal with sensitive issues?

 Group Activities and Discussion Questions:

  1. This is a tricky topic for discussion, but one that bears examination by students.
  2. Discuss how companies can handle divisive topics.
  3. How should marketers balance messages to communities.
  4. Poll students: What are topics that are divisive and controversial? What examples have students seen?
  5. Show video about the issue at Target: https://youtu.be/AvfuoXga77Q
  6. Show Target’s website for Pride items: https://www.target.com/c/pride/-/N-5589f
  7. How should marketers address controversial topics?

Source: Nassauer, S. (25 May 2023). Target lands in culture-war crosshairs over pride month. Wall Street Journal; Reid, H. (31 May 2023). Target Pride backlash exposes ‘rainbow capitalism’ problem, designer says. Reuters New service.

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Farewell to Google Glass, Again…

Poor Google Glass. It had a tough run but it has finally reached the end stage. Google stopped selling the Glass Enterprise smartglasses in March, and will likely end software support this fall.

Google Glass has had an interesting path over the years, beginning with the first prototype smart-glasses launched in 2013. Glass has a smart heads-up display and camera, allowing users to connect to data, and share information and images. Glass was originally priced at $1,500 and sold on a limited basis only to developers and some early technology adopters. Concerns quickly arose about security and privacy, and using the device to capture data for Google. The high price combined with limited availability and use had doomed the first version to end sales by 2015.

However, Glass came back to market a few years later as ‘Glass Enterprise Edition’ and was targeted at corporate customers and business users. That edition was revamped to focus on users such as medical personnel, workers in training, and manufacturing employees. The price was also lowered to $999.

But it still didn’t catch on, even as other companies such as Meta and Apple continue working on their own smart-glass projects using augmented reality.

What would you use smart-glasses for doing?

Group Activities and Discussion Questions:

  1. Explain the product and show videos about Glass: https://www.youtube.com/user/googleglass
  2. Poll students: Would they use the AR glasses?
  3. What are potential applications and target markets for AR glasses?
  4. What are the obstacles?
  5. Next, discuss the stages in the product life cycle.
  6. Illustrate how Glass has moved through the PLC.
  7. Divide students into teams. Have each team draw a product life cycle and place various products and services 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.

Source:  Leswing, K. (15 March, 2023). Google ends enterprise sales of Google Glass; its augmented reality smartglasses. CNBC.; Lukpat, A. (16 March 2023). Google Glass is going away, again. Wall Street Journal.; other news sources.

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Gen Z’s top 20 brands

Marketers recognize the importance of understanding demographics when deciding on target markets to pursue. Age is a significant factor as different generational cohorts have different tastes, aesthetics, expectations, and values. While different research firms may define the age cohorts slightly differently, the most-often cited years for Gen Z are 1997 to 2012, making Gen Z between 10 and 25 years old. This group is just forming their tastes and solidifying their values. This of course leads them to favor certain brands and companies over others. But which ones are their favorites?

Since this group makes up a large portion of traditional college students, it is critical for marketers to understand which brands they favor and why. Their evolving preferences can indicate how companies should adapt to the new group of consumers.

A recent study done by Morning Consult, which fields tens of thousands of surveys around the world, measured Gen Z’s favorite brands.  Data was gathered between May and August, 2022, with an average sample size of 2,031 Gen Z adults born between 1997 and 2004. Key insights and rankings include:

  • Tech brands are tops with Gen Z. The most favorable brand is YouTube at 86% favorable impression.
  • Major retailers such as Amazon, Target, and Walmart have high ratings hovering around 80% favorability.
  • In particular, gaming brands hold strong sway, along with food and beverage brands.
  • Top 10 most favorable brands: YouTube, Google, Netflix, Amazon, M&Ms, Walmart, Target, Doritos, KitKat, and Oreo.
  • Top 10 with Gen Z men: YouTube, Gatorade, PlayStation, Google, Walmart, Netflix, Microsoft, Amazon, Nike, M&Ms.
  • Top 10 with Gen Z women: YouTube, Google, Netflix, Target, M&Ms, Doritos, Amazon, Oreo, KitKat, Walmart.

Which brands are your favorites?

Group Activities and Discussion Questions:

  1. Poll students: What are their favorite brands? (Note: You might have students break into groups to arrive at a list of 20 brands.)
  2. Link to download the report from Morning Consult: https://go.morningconsult.com/2022-q3-pg8764a1-gen-z-favorite-brands-download.html
  3. Divide students into teams and have students analyze a data segment in the report. Teams can present their insights to the class.
  4. Have teams choose a brands that is NOT in the top (i.e., cars, household goods, consumer product companies).
  5. How can these findings be used to market weaker brands to Gen Z consumers?

Sources:  Jackson, S. (2 October 2022). From Amazon to Skittles, a new survey of the top 20 brands among Gen Z adults shows tech and snack brands reign supreme with the demographic. Business Insider.; Morning Consult. Gen Z’s Favorite Brands.

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