This Week in Marketing: April 16, 2011

This week's highlights (with applicable teaching topics and links to discussion below):

 

E-book sales top paperbacks

  • The article: E-book sales top paperbacks for first time, from CNN Money.
  • The facts: Through the fall and winter, I followed the growth of the e-book market, as e-book sales passed sales of hardback books. In February, e-books outsold paperbacks, making the e-book the top publishing format.
  • Classroom uses: The e-book market continues to be an excellent ongoing example of a product that has entered the growth phase of the product life cycle after decades of languishing in the introduction stage. You can also discuss what this means for traditional publishers--how do they remain relevant in today's market?

The History of Pringles

  • The article: Once a Great Flop, Now Sold for Billions, from The New York Times.
  • The facts: Procter & Gamble has just sold its Pringles brand to Diamond Foods for $2.35 billion. This article outlines the history of Pringles, from an originally unsuccessful product to a billion-dollar brand.
  • Classroom uses: Interesting to discuss in the context of new product development. The product required adjustments in order to find market acceptance.

Walmart's "Return to Maximalism"

  • The article: Walmart Evokes General Store With Return to Maximalism, from BrandChannel. (includes videos)
  • The facts: Wal-Mart underwent a store redesign to simplify stores and reduce the clutter--or the variety, depending on how you look at at it--on its shelves. This initiative has been blamed for a downward trend in sales. Walmart has reversed the trend by returning to "maximalism" and is reinforcing that decision with an ad campagin highlighting unusual goods available in its stores.
  • Classroom uses: Can be used to discuss trends in retailing, or to look at how their repositioning attempt is being supported by the new ad campaign.

Economic Recovery a Threat to Low-end Beers?

  • The article: Recovery May Give Low-End Beers a Hangover, from Advertising Age. (Access may require a subscription)
  • The facts: During the economic downturn, low-end products such as the Keystone Light brand of beer took market share away from beer drinkers looking to economize; however, as the economy recovers, the situation is changing. Many of the low-end brands are owned by major beer companies who now want to shift sales back to their flagship brands, and so prices of low-end beers are rising.
  • Classroom uses: An example of positioning a full product line, and also of using price lining to serve different target markets.

Girl Scouts Embrace Multiculturalism

  • The article: Girl Scouts Salutes Hispanic Market, from BrandChannel.
  • The facts: Recognizing that Hispanic communities are among the few places experience growth in the number of girls, the Girl Scouts are making major efforts to connect with the Hispanic market.
  • Classroom uses: Good example for a discussion of population trends and their impact on marketing, or for a discussion of subcultures or multiculturalism in marketing.