Tag Archives: services

The Brief Life of Quibi

Did you ever use Quibi? Do you even know what service Quibi provides? If your answer is “no” to either of these questions, then you are likely among one of the many reasons the video service shut down after only six months.

Quibi was developed as a streaming video app from Hollywood studio executives and offered entertainment and news in 5-10 minute lengths. It launched in April 2020 with the intent on challenging the streaming players. Quibi (which stands for “quick bites”) was designed for short viewing times in the “in-between moments” of life.

While the pandemic caused a number of issues for the company (since we were all now at home with devices, instead of on the move), it was only one of a series of missteps. Viewers couldn’t connect Quibi to their at-home TV, could not share programming, and had limited videos from which to choose. Quibi also had a lot of competition, including free services from YouTube and other platforms. Advertisers were also underwhelmed and experienced difficulties.

Although the app was downloaded an estimated 9.6 million times, and an estimated 90% of viewers left after the free trial period. The monthly service cost $4.99/month with included ads, or $7.99/month without ads. That’s not a bad price, but viewers saw it as one more monthly service to add on top of current streaming services from Amazon, Netflix, Apple, Disney+, and more.

Bye, Quibi.

Group Activities and Discussion Questions:

  1. Poll students: Who knows what Quibi did? Who used the service? Who subscribed beyond the free trial?
  2. Show Quibi’s site (it may not last long): https://quibi.com/
  3. News video of Quibi’s demise: https://youtu.be/tEfx_MxEXq4
  4. Discuss the components of an environmental scan: technology, social, competition, regulatory, and economic factors.
  5. Divide students into team. Have each team do a brief analysis of Quibi and the environment and develop a SWOT analysis.
  6. Discuss the stages in the product life cycle.
  7. Draw a product life cycle on the board and discuss the stages and marketing objective. What did Quibi’s PLC look like?

Source: AdWeek; New York Times; The Verge; Wall Street Journal; other news sources

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Meal Kits Rebound

Meal kits have been around for a number of years. When they first launched, the novelty and ease of use quickly drove the subscriptions up. But sales plateaued as competitors proliferated and differentiation between companies was missing. After all, how many meal subscriptions does a household need? The cost of the first sale was high, and competitors all seemed to be trying to reach the same target market. Growth stalled.

But, the coronavirus pandemic is changing the dynamics of the market once again. With more people staying at home, restaurants closed, and fear of the virus in crowded places such as supermarkets, meal kits are primed for a resurgence. According to Nielsen Research, consumer spending on meal kits in April of this year is nearly double the level from the same period a year ago.

Restaurants also are getting in on the action with Panera Break readying a launch of its own make-your-own salad and sandwich kits. It is being joined by other dining chains such as Denny’s, Chick-fil-A, Shake Shack, and others. Doing an Internet search for “meal subscription boxes” brings up dozens of options for meal and snack subscriptions!

Environmental conditions have a big impact.

Group Activities and Discussion Questions:

  1. Discuss the importance of environmental scanning in marketing.
  2. What are the environmental factors that are impacting the meal kit industry?
  3. How can meal kit companies use this information to retain and grow their customer base?
  4. Divide students into team. Have each team research one of the following meal kit companies, or another of their choosing:

Hello Fresh: https://www.hellofresh.com/

Home Chef: https://www.homechef.com/

Sun Basket: https://sunbasket.com/

Blue Apron: https://www.blueapron.com/

Freshly: https://www.freshly.com/

  1. How are these companies different? How are they similar? What is the value offered by each company?
  2. Have students build a SWOT analysis chart for the company.

Source: Wall Street Journal; other news sources

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Airbnb: Agility in Services

Companies and marketers are facing unusual times. Since the coronavirus has impacted global businesses, nearly all companies have had to make pivots in strategy to accommodate the rapidly changing environmental conditions.

One of the industries hardest hit by the coronavirus is travel and tourism. Airplanes are nearly empty as states implement stay-at-home policies. Hotels have empty rooms. Restaurants are restricted to curb-side delivery only. Honestly, it’s a mess and every marketer has to be up for the challenge and demonstrate agility.

Case in point: Airbnb has had to halt its ‘Experiences’ business where local residents provide unique experiences to travelers. It hosts 40,000 events in more than 1,000 cities around the globe. But, due to coronavirus, the in-person experiences are closed until stay-at-home restrictions lift.

Pivoting with the changing environment, Experiences offers online events in more than 30 countries. Experiences include tango lessons with a Latin Grammy nominee, guided meditation with sleepy sheep in United Kingdom, meditation with a Japanese Buddhist monk in Japan, and my favorite – a day in the life of an Olympic bobsledder!

Airbnb provides free experiences for isolated senior, giving them an opportunity to meet new people, but also travel anywhere in the world to learn something new.

Search out new experiences.

Group Activities and Discussion Questions:

  1. Discuss the differences between marketing products and marketing services.
  2. What has been the impact of the coronavirus on the travel and tourism industry?
  3. What are ways that this industry can stay relevant and responsive to a changing marketplace?
  4. View the Airbnb Web site: https://www.airbnb.com/s/experiences/online
  5. A video about the service can also be found at: https://youtu.be/XhaTCzKrEtE
  6. Discuss the Airbnb experiences. Which ones would student try?

Source: Ad Week; Associated Press; other news sources

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