Tag Archives: marketing mix

Fund-Raising with Healthy Options

We can usually tell when it is fund-raising season for schools and sports. Kids stop by houses and businesses, selling chocolate bars and other items to help fund a variety of programs and causes. And, although we happily buy and eat the candy, there can be some regrets over the empty calories, and the lack of sales going to local businesses. Wouldn’t it be better to offer healthy alternatives, and support local businesses? Of course! Enter a new company: FarmRaiser – connects fundraising groups with local products and foods.

FarmRaiser was founded in Michigan with a mission to connect local farmers and food artisans with schools, athletic teams, bands, and other causes. Vendors must meet standards for sustainable practices, and artisan products that do NOT list sugar as the first ingredient are welcome. The company states that “if a product has more than five or six ingredients, and if any of them are ones your grandma wouldn’t recognize it doesn’t make the cut.”

Campaigns are customized by working with a FarmRaiser “cultivator” to help determine fund-raiser goals, local products, and vendors. Each campaign also gets its own Web page on FarmRaiser.com. The company estimates that 85% of funds raised stays in the community; the average profit margin is 53% for the groups. The process is straightforward: once the cause is registered, FarmRaiser helps create a custom online and mobile market. At the end of the sale period, students help distribute the produce and products to their customers. Groups can choose various products and goods from multiple regions. Try combining Michigan cherries, with Texas Salsa.

What sounds good to you?

Group Activities and Discussion Questions:

  1. Discuss the fundraising activities that students might have done. Discuss what was it about, proceeds, products, process, etc.
  2. Introduce the topic of changing the product mix and sales process.
  3. Show a video about the company: https://vimeo.com/147806697
  4. Show Web site: https://www.farmraiser.com/
  5. Divide students into team. Have each team select a cause and develop a product set.
  6. Set SMART objectives for the company.

Source: Rieth, D. (Summer 2018). Home field advantage. Edible Michiana.

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Amazon’s Private Label Brands

 

Everyone wants a deal when shopping, particularly when shopping for basic products that are consumed frequently. That’s a good time to look at private label brands offered by different retailers. Unlike the big branded product (which are usually priced at a premium to consumers) store brands are sold only by that retailer and are priced lower. Private brands have a lower advertising costs; the advertising costs are minimum as the product is associated with the stronger brand name of the retailer.

Walmart, Target, Costco, Amazon, and other retailers all have popular store brands, sold exclusively by the retailer and at a lower price than national brands. One of Amazon’s big advantages though is its own data about how, and for what, its customers shop.

Amazon started into private label brands in 2009 with a number of products sold under the “AmazonBasics” brand. The company has steadily been expanded its offerings and has had good success. Case in point: The AmazonBasics battery line, priced nearly 30% lower than national big brands, now accounts for close to one-third of Amazon’s online battery sales.

Amazon has expanded its efforts and now has roughly 100 private label brands. As another incentive to shop the Amazon labels, certain of the products can only be purchased by Prime members.

A few Amazon brand examples:

  • Spotted Zebra – kids clothing
  • Good Brief – men’s underwear
  • Wag – dog food
  • Rivet – home furnishings
  • Lark & Ro – dresses
  • Goodthreads – clothing

Go ahead – do a generic product search and see what shows up. See if you prefer private brands.

Group Activities and Discussion Questions:

  1. Discuss the importance of branding in marketing, and the expense of branding.
  2. Discuss the advantages of private, store brands.
  3. Poll students: How many store brands can they name?
  4. Have students open laptops and phones. Go to Amazon.com and type “batteries.”
  5. What are the results? (Note sponsored content and advertising.)
  6. How should the private brands be marketed?

Source: Creswell, J. (23 June, 2018). How Amazon steers shoppers to its own products. New York Times.

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Was The Force with You? Columbia’s Star Wars Jackets

The newest movie in the Star Wars franchise is now in theaters and fans can’t get enough of the series of popular movies, or the Star Wars’- related products. The products are flying off the shelves as if they were under control of The Force. We are particularly sad to report that Columbia’s exclusive Star Wars-themed Echo Base outerwear collection sold out within minutes after its release! (Cross that one off your Christmas shopping list.)

Columbia released three jackets based on those worn by Luke, Leia, and Han while on the icy planet of Hoth. Luke’s jacket was designed to be “warmer than a tauntaun.” Han’s jacket reminds us to “Never tell me the odds.” And with Leia’s jacket, “May the force be with you.”

The company made only 1,980 coats (Get it? 1980 was the year of The Empire Strikes Back release) and they sold out online almost immediately, with very few left in stores. According to Columbia, the Luke jacket sold out in 5 minutes 22 seconds; the Han parka in 6 minutes 23 seconds; and the Leia jacket in 7 minutes 05 seconds. Not quite hyper-drive speed, but pretty darn fast nonetheless.

Columbia said the jackets were “built to withstand freezing temperatures on Hoth or other galaxies closer to home.” Unfortunately for fans, there are no plans to create more jackets.

Never underestimate the power of The Force, or a limited release.

Group Activities and Discussion Questions:

  1. Discuss the power of entertainment for marketing products.
  2. Poll students. What products related to movies or shows can they recall? Have they bought any of these?
  3. Show Columbia’s Star Wars-themed site: https://www.columbia.com/starwars/
  4. Discuss why the product sold out so quickly? Who was the target market? What role did exclusivity play in the sales?
  5. Should Columbia make more of the jackets?

Source:  Griner, D. (2017, Dec. 8). Columbia created a line of Empire Strikes Back’ jackets and sold out in minutes. Adweek.

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