Tag Archives: global marketing

Rent and return these shoes

Let’s start with a quiz: How many running or athletic pairs of shoes do you own? How long do they last? How much do you spend?

If your closet is like mine, you probably have at least six pairs, of which five pairs are very used and dirty. It would be nice if we could wear running shoes until they are worn or dirty, and then just trade it them in for a new pair. Well, as luck would have it, Swiss footwear company On Running is now offering a new running shoe called “Cyclon.” But Cyclon is not for sale – only for rent. Yes, rent. Use, wear, and return them for a new pair.

Cyclon is available for a monthly fee of $29.95. It is a subscription service for not only a performance running shoe, but a fully recyclable plant-based shoe. Castor beans are used as the base, and the shoe upper is sewn from a single piece of fabric to help reduce waste. On Running focused on the challenges of not only creating a fully recyclable shoe, but also making sure that the shoes were returned to be recycled. Thus, the subscription model of ‘rent and return’ gives On control of the recycling process.

It seems to have resonated with the market – in the first 48 hours after launching Cyclon On signed 2,000 subscribers! On needs 5,000 people to sign up per region in order to ship the shoes at reduced carbon footprint of the transportation.

Let’s go for a run!

Group Activities and Discussion Questions:

  1. Discuss a subscription business model. Poll students: What subscription services do they use? Other services they can name? (Ex: meal kits, shave clubs, entertainment, etc.).
  2. Poll students: On average, how much do they pay for a running shoe and how long does it last? How many pairs of athletic shoes do they have currently?
  3. Show On Running website: https://www.on-running.com/en-us/cyclon
  4. Show video of founders discussing Cyclon: https://youtu.be/VtosSdRZcsA
  5. What is the target market for Cyclon?
  6. What elements should be in the marketing program for this shoe?

Sources: Outside Online; other news sources

 

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Amazon Drones get U.S. Approval for Delivering Packages

Drones seem to be ready to take over the skies, but are they really ready for prime time? Can they deliver the goods? And how does this change delivery services around the globe? We may soon find out the answers to some of those questions.

Amazon is the latest company to receive FAA approval to operate a fleet of delivery drones. The approval gives Amazon Prime Air broad privileges to “safely and efficiently deliver packages to customers.” Amazon will test its drones with the goal of achieving 30-minute deliveries for packages of up to five pounds within a 15-mile radius of a warehouse. The company has been working on using drones for deliveries since 2013, continually innovating the drone models. The FAA approval gives Amazon permission to operate a fleet and is not tied to a specific model of drone.

Amazon isn’t the only game in town though. Last April, Wing (owned by Alphabet) received FAA approval for commercial deliveries. UPS also received approval to operate a fleet of drones as an airline last year. However, in all these cases, widespread use is likely still years in the future as the FAA needs to establish new, automated air-traffic systems as drone operations will exceed what human air controllers can handle.

Ready for your drone delivery?

Group Activities and Discussion Questions:

  1. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  2. Show Amazon drone video: https://youtu.be/3HJtmx5f1Fc
  3. Optional: Here is an older version of the Amazon drone model: https://youtu.be/MR9PoBAssw0
  4. Show competing drone services:
  1. Discuss which industries and services will be most impacted by drones. Why these?
  2. Will drones benefit consumers? How?
  3. Divide students into teams and have each team develop a positioning map for drone delivery services. What will be most important to consumers?

Sources: Associated Press; CNBC; New York Times; Wall Street Journal; other news sources

 

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The Era of the Fashionable Face Mask

So far the year 2020 has drastically altered lives around the world in every way possible. Think about it – since this past March, there has been a significant shift in consumer spending patterns. Globally, consumers have changed what they buy and where they buy it. Stores and restaurants closed. Online shopping boomed. And more.

Just consider what happened during the toilet paper shortage of 2020 to see how consumer behavior changed. And it’s not just toilet paper or flour; the global coronavirus pandemic has made changes not only in our households, work, education, transportation, social groups, but also in fashion. Fashion? Yes, fashion.

As recently as March (only five months ago!) it was doubtful that the average U.S. household had a supply of face masks. Think about it. Did your household stock any face masks prior to 2020? Now compare that with the number of face masks you have today in your home, car, briefcase, purse, bike bag, and office. It’s quite a big change and has created an entirely new product category for fashionable face masks.

There is a lot of variety and of course price variations. Some companies are giving away face masks branded with their logo. Other companies are creating new patterns and designs that let people express their personalities. They can be as inexpensive as cloth masks for a dollar or two, all the way up to a $1.5 million jeweled mask!b

Stay safe – and fashionable.

Group Activities and Discussion Questions:

  1. Poll students: What industries do they think are affected by the coronavirus? (Did any list fashion?)
  2. Discuss the impacts of the coronavirus on companies.
  3. Poll students: How many face masks did they have at the beginning of the year? How many do they have now?
  4. Show video of world’s most expensive mask: https://www.impomag.com/home/video/21160288/the-worlds-most-expensive-mask?lt.usr=71617211&utm_source=IMPO+Insider_08142020&utm_medium=email&utm_campaign=115163&utm_term=600946
  5. In groups or individually, have students do an Internet search for masks. Suggest they try their favorite brands, Amazon, Etsy, and more.
  6. Have students examine the different brands and determine the target market for that mask.
  7. Select several target market segments: have student develop a mask for the market segment considering the four Ps.

Source:  Associated Press; CNET; IMPO; other news sources

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