H.W 5.0

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H.W 5.0

1. A thought paper on the price tag law of the Philippines. Create a summary about its provisions.

Summary:

The Republic Act 7394 tells that all retailers must follow the set price in the article they cannot put higher amount to the suggested retail price. A price tag is a label that indicates the amount of the product being offered. Price tag is important for the customers to know the price easily and do not need to ask to the seller the amount. And also it will minimize consumers to ask for discounts because they can directly see the price especially when the quality of the product is good and it is in low price. A price tag should be in a clear print and have complete and exact information of the product being offered. Erasures on the price tag is only allowed if the price is being deducted during sales promos.

Using code in the price tag is allowed only when an establishment used an shelf pricing but it is needed to be complied under the Department Administrative Order No. 9, Series of 2002. Under the Consumer Act it says that warranty should be written clearly and what are the things or defect that is considered to be warranted. Code in price tag needs to have a price verification on counter cash register tape that can states the size, quantity, and individual goods that consumer will avail. Price list is allowed when is it used in the consumer services. For the customer to avail warranties they should present an official receipt from the company that they avail or bought that particular product. When having dummies in store you also need to put price tag for the customer to easily know the price.

Reference:

http://www.dtincr.ph/faq_pricetag.php

DTI NCR, Philipines. N.p., n.d. Web. 21 Aug. 2014.

WAC 1.0

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009629321

“Leaders in Savoury Snack Innovation in Europe”

Abstract:

Intersnack Limited is the major supplier of the savoury snacks in United Kingdom. They are part of the European Intersnack Group. Richard Robinson became part of Intersnack as Managing Director in mid-2011. The insight into the performance of the business were limited. The most immediate need was for an interactive sales analysis  dashboard to enable executives and finance staff to understand key trends and future  scenarios by customer and product, focusing on volumes, pricing and the management of promotional spend. They used the dashboard for them to gain rapid personal familiarity. Dashboard improved since it was launched.

Introduction:

People throughout Europe enjoy savoury snacks made by the Intersnack Group every day. Our brands have become consumer favourites and annually we produce around 500.000 tonnes of snacks including potato chips, nuts, baked products and specialty snacks. It is these highly successful brands and private label products that drive our business in all major European markets. We believe our snacks are popular because we listen carefully to our customers, wherever they live. As a result, our team of food scientists across Europe is constantly working to create delicious new products that meet changing expectations and regional tastes. Of course, it goes without saying that the top priority of more than 8.000 employees is to continually improve the quality and taste of our snacks.

Intersnack Group is one of the major company in Europe that produced savoury snack. They are now in the peak of their success because people is being satisfied with their products. They are recognizing the importance of environmental and social responsiblities and put it in their hearts in everything that they are doing.

Hypothesis:

Intersnack Group have a high income of they are successful because of the hardwork and dedication of every worker in their jobs. Like Mr. Richard Robinson he became part of the group and the flow remains smooth and it improves because of the projects that he is implementing. The good run of business is really according to the hardship of the people related to eat. They are all working hard and give all their best just to meet the expectation of the customers. And like the project of using dashboard they can easily forsee the possible position of them in the market and they can see in advance their budgets.

Methodology:

  1. Organize a Leadership Team
  • We need to make a team for us to have a stronger power in developing a strategy or project for the betterment of the company. And a leadership team will lead the purpose into easily attainable.
  1. Articulate Mission and Vision
  • We have to prioritized the mission and vision of the company before we do a certain project because it must applicable and accurate on what is our purpose in developing a project.
  1. Assess the Current Environment
  • We need to consider the environment because it will dictate the possible outcome and it must be fit on what environment you have.
  1. Agree on priorities
  • The whole team must agree on the priorities for the project to be successful and have no conflict.
  1. Monitor and Evaluate
  • The last thing that we’re going to do is to monitor and evaluate the implemented project and see the advantages and disadvantages of it. It will show how successful the project is.

Results:

Tu-WJr7ARE28SoNs9nofkw

Analysis:

As the graph shows it indicate that as the years goes by the sales of the Intersnack keeps on increasing. They did all their best for them to achieve a successful business. Increasing sales is their key why they are still on the market and stand as the leading brand. By following the steps you will know the benefits of the project you implemented that will cause to a successful and high sales market.

Conclusions:

I can conclude that hardship leads to a success. And having the heart on what you are doing. Having a better leader will lead to a unite group.

References:

http://www.metapraxis.com/wp-content/uploads/2013/05/Intersnack-case-study.pdf

https://timetric.com/index/Tu-WJr7ARE28SoNs9nofkw/

http://www.intersnack.com/about-us/

http://www.zoominfo.com/p/Richard-Robinson/1640952401

Acknowledgements:

Richard Robinson Richard Robinson joined Intersnack as managing director in April 2011. He has worked with many FMCG brands and companies during his career, including Sara Lee, Gillette and Young’s Seafood. Before joining Intersnack Richard was Commercial Director (UK and Ireland) at Northern Foods.

He says, “Snacking is one of grocery’s most exciting and innovative sectors and at Intersnack we’re proud to have the imagination, vision and resources to drive new value and ideas for both our customers and consumers.”

The one leads the Intersnack Group to a successful company in the Europe.

Appendix:

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HW 4.0

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  1. Give at least five known local brands and the top ten international brands. Include a brief company overview for each brand.

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Top 5 Local Brands

The Cherry Mobile Story: How the New Player Changed the Game

Cherry Mobile’s astonishing rise to prominence has revolutionized the local telecommunications scene through its top-of-the-line and ground-breaking products with true Dual SIM capabilities. What started in 2009 as a mobile phone brand with only four units to showcase has swiftly overtaken its rivals in the entry-level market and is now considered a game changer in the industry. In just a span of three years, Cherry Mobile now carries more than 100 handsets, making it the leading Dual SIM brand in the country.

The Beginnings

In 2010, Cherry Mobile upstaged some of the country’s IT giants in the 3rd CyberPress Awards when it was voted as IT Company of the Year. Cherry Mobile’s astonishing rise to prominence in the local mobile-phone market impressed IT journalists who also took note of the company’s unconventional marketing strategy.

2009 marked Cherry Mobile’s commitment to become the top value-for-money mobile phone in the country. In its first year, Cherry Mobile CEO Maynard Ngu envisioned Cherry Mobile to become the brand that has “Everything for Everyone,” providing handsets that cater to different age groups and match different lifestyles.

It was a dream that became a reality. So big it captivated the market and rocked its competitors – the telecommunications bigwigs. In 2010, barely two years after it started, Cherry Mobile was voted IT Company of the Year in the 3rd CyberPress Awards, upstaging some of the country’s technology giants.

True to its promise of bringing products that are comparable to high-end devices at affordable prices, the company continuously expands its product range–from feature phones to smartphones.

The stylish and cool designs of the Cherry Mobile P1 and P3 are for the kids and kids at heart. For the oldies, the L6 is the perfect choice with its extra-large keypads and SOS key. Meanwhile, the X90, with its kikay and swivel design, is the perfect match for girls. For young professionals and tech-savvy guys, Cherry Mobile brings together seven Qualcomm-operated smartphones that range from P4,999 to P13,999. Most of all, Cherry Mobile brings entertainment-on-the-go with its extensive collection of music and TV phones.

Reference: http://www.cherrymobile.com.ph/content/company-profile

Starmobile

 Starmobile, maker of quality Android smartphones and tablets, was established by Star Telecom Alliance Resources (STAR, Inc.), a group of telecommunications industry experts based locally and internationally. By combining excellent product development, sales & marketing, and customer service competencies over the past decades, we respond to the needs of Filipinos by providing quality Android smartphones and tablets and with customized features and software for the Philippines.

We work in strong partnership not only with mobile technology experts, but also invite our users to be part of our growth and development. We hope that you share our joy in using Starmobile, and that it leaves you happy and always satisfied.

Star Mission & Vision

At Starmobile, we understand and actively respond to your communication needs. We provide a range of devices and solutions that deliver excellent consumer experience. By addressing your communication wants and needs, we hope to improve and enhance your personal and professional relationships as well.

Reference: http://www.starmobile.com.ph/about_us.html

Nestlé

Over a hundred years after it first started operations in the country,  Nestlé Philippines, Inc. (NPI)  today is a robust and stable organization, proud of its role in bringing the best food and beverage throughout the stages of  the Filipino consumers’ lives.  The Company employs 3,700 men and women all over the country, and is among the Philippines’ top corporations.  Its products are No. 1 or strong No. 2 brands in their respective categories.

Nestlé Philippines, Inc., A Short History

The Early Years. Although Nestlé products were already available in the Philippines as far back as 1895, it was not until 1911 when The Nestlé and Anglo Swiss Condensed Milk Company was established in the country, with its first sales office in Calle Renta, Binondo. 

The Company was forced to suspend its operations during World War II, but soon made a comeback after Liberation, under a new name:  Filipro, Inc.   It continued to import products such as MILO, NIDO powder milk, MILKMAID and NESCAFÉ from other countries.  In the early 1950’s, Filipro encountered difficulties when the Philippine government imposed import control.  Due to lack of imported products to sell, it was forced to become a distributor of peanut butter, napkins, fruit preserves, and patis (fish sauce) just to keep its operations going.

Local Production. In 1960, Nestlé S.A.and San Miguel Corporation entered into a partnership resulting in the formation of Nutritional Products, Inc.  (Nutripro). In 1962, Nutripro’s first factory started operations in Alabang, Muntinlupa to manufacture NESCAFÉ.   In 1977, Filipro, Inc. And

Nutripro Inc. merged under the name Filipro, Inc.  In 1986,  Filipro, Inc. changed to its present  name as  Nestlé Philippines, Inc.

Nestlé now has manufacturing facilities in Cabuyao (Laguna), Cagayan de Oro, Lipa (Batangas), Pulilan (Bulacan) and Tanauan (Batangas) to meet the growing demand for Nestlé products in the country.

Growth and Diversification.  In 1991, Nestlé pioneered the AIJV (ASEAN Industrial Joint Venture), a regional complementation program.  The Company participated in this program with the production of breakfast cereals at the Nestlé Lipa Factory, for export to  ASEAN markets. Today, three of the Nestlé factories in the Philippines – Lipa, Cabuyao, and Cagayan de Oro — serve as ASEAN Supply Centers to meet the requirements of Nestlé markets in the region.

In late 1998, Nestlé Philippines became a wholly owned subsidiary of Nestlé S.A., following the latter’s purchase of all of San Miguel Corporation’s equity shareholding in the Company.

Driven by its mission to nurture generations of Filipino families, Nestlé today produces and markets products under some of  the country’s well known brands  such as NESCAFÉ, NIDO, MILO, NESTEA, MAGGI, BEAR BRAND, NESTLÉ, and PURINA, among others.  Its product range has expanded to include coffee, milk, beverages, non-dairy creamer, food, infant nutrition, ice cream and chilled dairy, breakfast cereals, confectionery, and pet-care.

Reference: http://www.nestle.com.ph/aboutus/history

Universal Robina

Universal Robina Corporation (URC) traces its beginnings all the way back to 1954. John Gokongwei was doing very well then as a trader/importer. He had learned the trade when his father died before the war, and had worked hard through the war and postwar years to prosper. However, while he thrived, he took a long hard look at his company, and correctly predicted that trading would remain a low-margin business.

On the other hand, a successful manufacturer controlling its own production and distribution would command more profitable margins. Mr. John decided to construct a corn milling plant to produce glucose and cornstarch,  Universal Corn Products (UCP), the first linchpin of the company that would become the URC we know today.

For a time, business was good. However, Mr. John was still looking ahead, working with an eye towards the future. While the business was doing very well, it was producing essentially a commodity, which a customer could easily access elsewhere. To stay ahead in the game, Mr. John  had to diversify by producing and marketing his own branded consumer foods, similar to the multinational companies in the country like Nestle and Procter & Gamble. In a sense, he wanted to put up the first ‘local’ MNC, borne out of their best practices.

Thus, in 1961, Consolidated Food Corporation was born. Their first ‘home run’ product was Blend 45, the first locally-manufactured coffee blend, dubbed as the  “Pinoy coffee”. This became the largest-selling coffee brand in the market, even beating market leaders Café Puro and Nescafe.

After coffee came chocolates. Nips, a panned chocolate was a staple of Filipino childhood.

In 1963, Robina Farms started operations, beginning with poultry products. This was also the beginning of the vertical integration of the Gokongwei businesses, as the farms would be able to purchase feeds from UCP in the future.  Later that decade, Robichem Laboratories would be put up, to cater to the veterinary needs of the farms businesses. Robina Farms expanded as it entered the hogs business in the latter part of the 70s.

1966 saw the establishment of Universal Robina Corporation, which pioneered the salty snacks industry through Chiz Curls, Chippy, and Potato Chips, under the “Jack  ‘n Jill” brand. Other snack products would follow over the years, as the company successfully introduced market leaders like Pretzels, Piattos, and Maxx.

The coming decades saw more acquisitions and  expansion. In the early 1970s, the family entered the commodities business through the formation of Continental Milling Corporation, for flour milling and production. The late 1980s brought the acquisition of three sugar mills and refineries, under URC Sugar. These two businesses provided stable cash flows, and allowed for further vertical integration in the supply chain, to help URC weather any volatility in the cyclical commodities markets. In line with this strategy, the late 1990s saw the entry of URC into the plastics business, through URC Packaging.

While the businesses  became more diversified, the companies were slowly  integrated in order to streamline and minimize costs. In 2005, the present structure of the group was completed. All the different companies are now organized under the Universal Robina Corporation umbrella, divided into 3 focused groups:

the Branded Consumer Food Group, comprised of BCFG Domestic (including packaging) and International

the Agro-Industrial group, comprised of Universal Corn Products, Robina Farms, and Robichem

and the Commodities group, with the Sugar and Flour divisions

Mission and Vision

Mission

Universal Robina Corporation (URC) is one of the largest branded food product companies in the Philippines and has a growing presence in other ASEAN markets.

Vision

URC’s vision is to be the best Philippine food and beverage company, with a powerful presence throughout the ASEAN region, carrying a wide portfolio of delightful brands of exceptional quality and value, equipped with efficient systems and motivated people. We are committed in making lives a truly fun experience.

Values

Passion to Win: We build organizational capability by being entrepreneurial and proactive, driven by a sense of urgency and purpose. We continuously challenge ourselves to deliver world-class brands and consistently rally our people to strive for excellence.

Dynamism: We cultivate a culture of innovation and productive working relationships. We continuously find ways to improve organizational and people capabilities to meet constantly challenging consumer needs.

Integrity: We are guided by transparency, ethics, and fairness. We build the business with honor and are committed to good governance. Our processes and products meet the highest standards. We are credible in our dealings with both internal and external stakeholders.

Courage: We seize opportunities in building long-term, sustainable businesses. We make tough people and business decisions to ensure competitive advantage.

Reference: http://www2.urc.com.ph/company_history.html

Oishi

Liwayway Holdings Company Limited, doing business as Oishi, is a snack company based in the Philippines. Its headquarters are in Pasay City in Metro Manila. As of 2013 it is headed by Carlos Chan (C: 施恭旗, P: Shī Gōngqí[3]).[4] Russell Flannery of Forbes wrote that “Oishi’s spelling looks a lot like the Japanese word for delicious, oishii.”

Oishi, started in 1946 as Liwayway, was originally a family-owned corn starch repacking business.The name “Liwayway” was chosen because it reflected the optimism of the Philippines after World War II. By 1966, in addition to distributing starch, the company also was distributing basic commodities, coffee, and confectioneries. It was incorporated as the Liwayway Marketing Corporation (LMC) in 1966. Brothers Carlos and Manuel Chan, at the time, were behind the company.The parents of the Chan brothers had immigrated to the Philippines from Fujian Province, China. Carlos is the older brother.The company began distributing Oishi Prawn Crackers and Kirei Yummy Flakes in 1974. The company used Japanese technology to make the products.

Reference: http://en.wikipedia.org/wiki/Oishi_(company)

Top 10 International Brands

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SAMSUNG

Samsung Electronics is part of one of the largest multi-billion dollar corporations in the world. In 2007 it exceeded the $100bn mark in annual sales for the first time in its history. This makes it one of the world’s top three companies in the electronics industry where only two other companies, Siemens and Hewlett-Packard, have posted larger revenues. The name Samsung literally means ‘three stars’ or ‘tristar’ in Korean, reflecting the Samsung Group’s dominance in two further sectors: Samsung Heavy Industries and Samsung Engineering and Construction. If you are talking innovation in Samsung walks the walk and is now the established leader in consumer electronics, providing a range of leading-edge premium products and, in their own words, ‘leading the digital convergence revolution’. In so doing Samsung has made a remarkable transformation from copy-cat manufacturer to become Asia’s most valuable technology company.

Samsung today owes much of its success to its Value Innovation Programme. With 6 design labs staffed by 450 people it is serious about understanding what it is consumers need long before considering the technologies required to deliver them. It believes (and, to be fair, evidence suggests) that success in consumer electronics can only ever be short term and there is therefore a pressing need for continuous innovation in order to develop new technology platforms and create products that are first of its kind in the marketplace.

Samsung spends more than $6bn on research annually. It recognises that many of its products, such as semiconductors and flat-screens, are now basic commodities, and its focus is on producing iconic devices for the next generation as Sony’s Walkman was in the ’80s and the iPod is today. Samsung’s innovation focus is therefore set firmly on design and, most specifically, on the design of digital TVs. Samsung launched the R7 LCD TV in 2005 which paved the way for the 2007 “Bordeaux”, a flat screen television with contours reminiscent of a wine glass. This is Samsung’s first LCD television to sell more than 1m units.

Samsung has also turned its hand to designing slick mobile phones, teaming up with Bang & Olufsen to produce the Serene, and most recently the Serenata handset. Described by FHM as “cooler than an Eskimo in an Armani anorak” it is certainly giving its peers a run for their money. In the third quarter of 2007 Samsung’s mobile phone division overtook Motorola to gain second place in the market and has again seen growth in handset sales reaching 14% share. Although still far behind Nokia, with the increased demand for 3G handsets and its strong position in emerging markets, Samsung expects a further growth.

However, it is not all flash and glamour: Up until recently Samsung’s memory division was responsible for 70% of the profit but overcapacity has led to an industry wide decline. Undaunted however, Samsung, which often makes big investments during downturns so that it can increase its market share and make bigger profits when the industry cycle picks up, is raising its capital investment in this division. As peers cut back this is a bold move that signals a strong confidence in the eventual upturn of the memory market. With a brand value now greater than Sony, it is clear that Samsung’s strategy of delivering high quality products with an emphasis on design is paying off and the company is confident of its future performance. Time and again Samsung has proved it is able to look into the future and create what’s just around the corner for the rest of us.

Reference: http://innovationleaders.org/sam_company_profile.html

Louis Vuitton

Since its founding in Paris in 1854, Louis Vuitton has catered to—among the general throng of well-heeled everywomen—empresses, explorers, and magazine editors. What was once a tiny little Parisian luggage shop is now the multifaceted jewel in the crown that sits atop the head of Bernard Arnault, CEO of the fashion conglomerate LVMH, who, in 2003, likened the revenue-generating house to a “luxury Microsoft.”

For well more than a century, Louis Vuitton was best known for canvas-covered travel cases with flat, stackable shapes that made them ideal for modern travel via planes, trains, and automobiles. The company’s operating system was substantially updated in 1997, however, when Marc Jacobs, the downtown New York designer best known at the time for elevating the grunge look, was hired as creative director. For the next sixteen years, Jacobs was charged with creating not just apparel for Vuitton, but accessories, too (from handbags to, later on, watches and jewelry). Before long, the brand was not only moving with the times, it was shaping them. As Sally Singer colorfully reported in Vogue in 2000, “In the space of two years, and with much hoo-ha over his corporate teething pains, the darling of New York’s fashion antiestablishment has transformed an arch-bourgeois luggage company ravaged by a zillion knockoffs into an impossibly hip purveyor of haute ready-to-wear.”

Vuitton had indeed been devilled by copycats as early as the nineteenth century, but that imitation has often been the mother of invention. Production is controlled tightly—so that demand for handbags regularly exceeds supply, and prices are never reduced—but as soon as a new LV accessory is glimpsed in the press, the fakes and coattail-riders hit the production line . . . and so designers start thinking of something new. “My team and I are always playing ‘Top this’ with one another, hoping to surprise our customers,” Jacobs told the magazine in 2010. “At Vuitton we’re working on this luggage icon, one with no archive of clothes,” he said in 2000. “It’s fun to keep bringing something fresh, and the way to do that is by bringing in fresh people.”Among the creative collaborations, spearheaded by Jacobs, that kept things constantly moving forward were those with the 1980s It designer Stephen Sprouse and the artists Richard Prince and Takashi Murakami. The pop-meets-manga efforts of Murakami were so unique—some of the bags requiring up to 93 color screens (versus the three needed for the basic LV logo)—that the house altered its Monogram Canvas for the first time since its introduction in 1896.

Just as art-world A-listers were brought in to the design atelier, a troupe of Hollywood stars (Jennifer Lopez, Uma Thurman, Scarlett Johansson) was tapped by Jacobs to represent the company in its advertisements, and world-renowned architects hired to dream up new retail spaces. Jacobs’s out-of-the-box thinking stoked unflagging interest in the brand.

In October 2013, during Paris Fashion Week, the house announced the departure of Jacobs; the spring 2014 runway presentation was his swan song. Reports said that he was leaving to focus on a public offering of his own namesake label. Critics sent up a wail of lament: It was, everyone seemed to agree, the end of a transformative era. Just a few weeks later, though, the tears changed to cheers when it was confirmed that the French wunderkind Nicolas Ghesquière would lead the mighty fashion superpower into a new era.

The new alliance was formidable. Ghesquière’s retro-futuristic manifesto at Balenciaga had earned him a reputation as not just a highly original thinker but one of his generation’s brightest lights. “Louis Vuitton has always incarnated for me the symbol of ultimate luxury, innovation, and exploration,” he said upon his appointment. “We share common values and a vision.”

Reference: http://www.vogue.com/voguepedia/Louis_Vuitton

Apple

Apple Inc. is a multinational corporation that specializes in the production of consumer and business computers, electronics, and software. The company was established on April 1, 1976 by three individuals named Steve Jobs, Steve Wozniak, and Ronald Wayne. It was then incorporated on January 3, 1977 and was initially known as Apple Computer, Inc. for 30 years thereafter, until it was changed to Apple Inc. on January 9, 2007, so as to include a more diverse line of products to the market than just computers, as the former name suggested.

One of Apple’s first products, the Macintosh computer, which was welcomed into the educational sector quite quickly after its release in 1984, paved the way to progressive variation and greater innovation among the company’s products. However, these variations and innovations were not always met with immediate approval. Their introduction of the Macintosh Portable, as well as a variety of other electronic equipment including digital cameras, speakers, and television appliances, failed to garner much appeal in the consumer market. This caused Apple to re-examine their position in the marketplace they held. At one time, Apple even allied itself with such companies as IBM, Motorola, and Microsoft in hopes of increasing sales. This, however, did not aid the company in ways they had thought it would. Thus, they decided that the reinvention of their original product was the best direction to take. In an attempt to revive their declining reputation, Apple successfully managed to transform the Macintosh into the iMac. Riding on the success of the iMac, this allowed the company to cast a wider net to include more products and services such as the Apple Store, iPod, iTunes, MacBook, iPhone, and now the iPad.

Despite its downfalls, Apple has become a powerful frontrunner in the electronic industry due to its massive popularity, familiarity and loyalty that it has created for its customers. This has been reflected by an increase in revenues, profits, total equity, and number of employees from it’s previous fiscal year of 2009. The strength of their products and services has also risen over the years. In 2009, Apple revitalized their base product line of MP3 players to include more features, upgrades, and enhancements. Their devotion to customer service, attention to detail and evolving consumer demand has put t he company on a path towards prolonged success that will not likely falter any time soon.

Reference: http://macapplepod.wikispaces.com/Overview+of+the+Company

Apple inc. (2010). Retrieved November 6, 2010, from http://en.wikipedia.org/wiki/Apple_Inc.

Skechers

Skechers is an American shoe company headquartered in Manhattan Beach, California, founded by CEO Robert Greenberg and his son Michael in 1992. After Robert left LA Gear, which he had founded in 1983, the Greenbergs set up Skechers as a distributor for Doc Martens. Importing knock-off Doc Martens boots ended in a legal battle between Skechers and R. Griggs Group. Skechers’ early products were utility-style boots and skate shoes; the company has since diversified to include thousands of athletic, casual and dress styles for men, women, and children.

Skechers makes an effort to maintain a trendy and stylish brand image by using celebrity-driven advertising,and has promoted its product with The Voice winner Danielle Bradbery, TV personality Brooke Burke-Charvet, marathon runner Meb Keflezighi, quarterback Joe Montana and entrepreneur Mark Cuban.[6] In 2014, the company signed a deal with the owners of the race horse California Chrome to display the company’s logo on various items worn by the horse and his handlers during the 2014 Belmont Stakes.

The company offers two distinct footwear categories: a lifestyle division that includes the charity line BOBS and Relaxed Fit comfort shoes, and a performance division that includes Skechers GOrun and GOwalk footwear. Through licensing agreements, the company also offers branded apparel, bags, watches, eyewear and additional merchandise. Skechers has an extensive network of global distributors that sell its product in over 120 countries and territories, and nearly 900 SKECHERS stores around the world.

In 1998, Skechers signed an agreement with ModaCAD Inc. to participate in ModaCAD’s dynamic interactive, photo-realistic 3-D rendered virtual shopping mall.

In 2012, Skechers agreed to settle a class action lawsuit for $40 million based on a U.S. Federal Trade Commission complaint that it had misled customers with its Shape-Ups ads.

Reference: http://en.wikipedia.org/wiki/Skechers

Bench

VISION

To be a recognized world brand among the best world brands.

MISSION

When we create, we inspire,

When we make, we innovate,

when we lead, we serve.

ABOUT BENCH

Beginning in 1987 with a small store selling men’s t-shirts, Bench grew at an unparalleled rate by being the pioneer in the use of celebrity endorsers, television and giant billboards to propel a fashion brand that offers premium quality products at affordable prices.

To date, Bench has grown to include a ladies’ line, underwear, fragrances, housewares, snacks, and a wide array of other lifestyle products, with the distinction of being present in virtually every retail space in the Philippines, and with a worldwide network of stores and outlets, reaching as far as the United States, the Middle East, and China.

As it sliced through demographic divisions — age, gender, socioeconomic status — a stirring slogan, “Bench is forever”, became the company’s abiding creed.

1991

– Best Cinematography – Bench “Sculler” Campaign 12th Advertising Congress – Araw Awards

1994

– New York Festival International Advertising Bench “Air/Water/Fire” Campaign – The New York Festivals

1995

– Platinum Award – TVC Bench “Fire” Campaign – 14th Philippine Advertising Congress

1997

– World Class Retailer (Medium Scale Apparel Category) – Philippine Franchise Association

1998

– Outstanding Filipino Retailer – Bench (Medium Scale Fashion) – Philippine Franchise Association

1999

– Most Promising Filipino Franchise of the Year – Bench (Non Food) – Philippine Franchise Association

– Outstanding Filipino Retailer – Bench (Non Fashion) – Philippine Franchise Association

2000

– Outstanding Filipino Franchise of the Year – Bench (Non-Food) – Philippine Franchise Association

– Golden Shell Award for Marketing Excellence – Department of Trade and Industry

– Ayala Malls Grand Store of the Year – Ayala Malls Merchants Rewards Program

2001

– Franchise Excellence Award – Hall of Fame in Retail – Philippine Franchise Association

– Finalist – Bench Underwear “Breathable” Campaign – 2001 London International Advertising Awards

2003

– Bronze Award Bench Response Deo “Beauty Pageant” Campaign – 18th Philippine Advertising Congress

2004

– World Medal Bench Response “Beauty Pageant” for TV & Cinema Advertising – The New York Festivals

2008

– Global Filipino Franchise Award – Philippine Franchise Association

2009

– Outstanding Filipino Retailers Awards Night Bench Body – Fashion category – Philippine Retailers Association.

– Global Filipino Franchise Concept of the Year -Retail Category – Philippine Franchise Association.

2011

– Federation of the Asia Pacific Retailers Association (FAPRA) held in Singapore, Bench won as Best in Marketing Campaign Award.

2012

– With 62 branches overseas. the Agora Award for Export Marketing is awarded to bench/

2013

– Top 10 Underwear Brands – Shenzhen International Brand Underwear Fair – China.

– 15 Years of Partnership Award from the 15th Annual Ayala Malls Merchant Rewards.

– Promoting Philippine Arts & Culture Award from the 15th Annual Ayala Malls Merchant Rewards.

– The President’s Award for the Global Filipino Franchise for 2012 (Retail Category) at the Franchise Excellence Awards.

Reference: http://www.bench.com.ph/company.php

Hershey

The Hershey Company (NYSE: HSY), headquartered in Hershey, Pa., is a global confectionery leader known for bringing goodness to the world through its chocolate, sweets, mints and other great-tasting snacks. Hershey has approximately 13,000 employees around the world who work every day to deliver delicious, quality products. The company, which has more than 80 brands around the world that drive over $7.1 billion in annual revenues, includes such iconic brand names as Hershey’s, Reese’s, Hershey’s Kisses, Jolly Rancher and Ice Breakers. Hershey is focused on growing its presence in key international markets while continuing to build its competitive advantage in North America. Additionally, Hershey is poised to expand its portfolio into categories beyond confectionery, finding new ways to bring goodness to people everywhere.

At Hershey, goodness has always been about more than delicious products. For 120 years, Hershey has been committed to good business by operating fairly, ethically and sustainably to make a positive impact on society. This means contributing to a better life for its employees, consumers, communities, and, ultimately, creating a bright future for children in need. This commitment is exemplified by Milton Hershey School, established in 1909 by the company’s founder and administered by Hershey Trust Company. The children who attend the school receive education, housing, and medical care — thriving as direct beneficiaries of The Hershey Company’s success.

Reference: http://www.thehersheycompany.com/investors/company-profile.aspx

Hewlett-Packard (HP)

Hewlett-Packard is slimming down to flex its muscle in big data, cloud computing, and security. HP provides one of the tech world’s most comprehensive portfolios of hardware, software, and services. It is the world’s second-largest provider of PCs ( Lenovo is #1); other products include servers, storage devices, printers, and networking equipment. The company’s services unit offers IT and business process outsourcing, application development, consulting, systems integration, and other technology services. HP generates software sales through enterprise IT management, big data, and security applications. The 75-year-old company, which serves customers worldwide, is undergoing a major restructuring as part of its turnaround strategy.

Reference: http://www.hoovers.com/company-information/cs/company-profile.Hewlett-Packard_Company.ce061ed249e20ed3.html

Lenovo

Lenovo Group Ltd. (stylized as lenovo) is a Chinese multinational computer technology company with headquarters in Beijing, China, and Morrisville, North Carolina, United States. It designs, develops, manufactures and sells personal computers, tablet computers, smartphones, workstations, servers, electronic storage devices, IT management software and smart televisions. In 2013 Lenovo was the world’s largest personal computer vendor by unit sales. It markets the ThinkPad line of notebook computers and the ThinkCentre line of desktops.

Lenovo has operations in more than 60 countries and sells its products in around 160 countries. Lenovo’s principal facilities are in Beijing, Morrisville and Singapore, with research centers in those locations, as well as Shanghai, Shenzhen, Xiamen, and Chengdu in China, and Yamato in Kanagawa Prefecture, Japan. It operates a joint venture with EMC, LenovoEMC, which sells network-attached storage solutions. It also has a joint venture with NEC, Lenovo NEC Holdings, which produces personal computers for the Japanese market.

Lenovo was founded in Beijing in 1984 as Legend and was incorporated in Hong Kong in 1988. Lenovo acquired IBM’s personal computer business in 2005 and agreed to acquire its Intel-based server business in 2014. Lenovo entered the smartphone market in 2012 and as of 2014 is the largest vendor of smartphones in Mainland China. In January 2014, Lenovo agreed to acquire the mobile phone handset maker Motorola Mobility from Google.

Lenovo is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng China-Affiliated Corporations Index, often referred by those in the business as the “Red Chips”.

Reference: http://en.wikipedia.org/wiki/Lenovo

Johnson&Johnson

Company Overview

Johnson & Johnson’s commitment to innovative health care products has resulted in consistent financial performance. The Company has 30 consecutive years of adjusted earnings increases and 52 consecutive years of dividend increases.

Johnson & Johnson, through its family of companies, employs approximately 126,000 people worldwide and is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. Johnson & Johnson’s primary interest, both historically and currently, has been in products related to health and well-being. Johnson & Johnson was organized in the State of New Jersey in 1886.

Johnson & Johnson is organized on the principles of decentralized management. The Executive Committee of Johnson & Johnson is the principal management group responsible for the strategic operations and allocation of resources of the Johnson & Johnson family of companies. Johnson & Johnson’s operating companies are organized into three business segments: Consumer, Pharmaceutical and Medical Devices and Diagnostics. A Group Operating Committee, composed of managers who represent key operations within the segment, as well as management in specialized functional departments, oversees and coordinates the activities of domestic and international companies related to each of the business segments. However, in line with the principle of decentralized management, senior management groups at U.S. and international operating companies are each responsible for their own strategic plans, as well as the day-to-day operations of those companies, and each international company is, with some exceptions, managed by citizens of the country where it is located.

Reference: http://www.investor.jnj.com/company-overview.cfm

Adidas

Adidas is on the move and always has been: It has had an adventurous history since it first grew out of a family business in Herzogenaurach, Germany in the 1920s. With the hostile separation of two brothers’ interests in the 1940s, nearly going bust in the 1980s and then executing two rescue operations, first by sending production offshore to Asia and then by reinventing itself into a design and marketing company, Adidas has riden the waves of change in the sports goods sector both up and down. Alongside its own brands, it owned the Saloman ski and sportswear brand for nearly a decade and now includes the Reebok, Taylormade Golf and Rockport brands in its stable.

Things are now definitely on track and, if the current marketing slogan, “Impossible is Nothing”, is anything to go by, the company is brimming with confidence. This is not surprising when you consider that Adidas now consistently out-performs the rest of the sector and has enjoyed eight years of consecutive double digit net income growth. It is now the world’s number two sports apparel manufacturer with total sales for 2007 of €10.3bn and profit growth of 9%.

Walk along any high street and it is clear that wearing sports clothing is definitely a fashion statement, and possibly an indication of athletic prowess. Adidas recognised this trend early on and has developed high-performance sports lines in collaboration with the likes of Stella McCartney, Yohji Yamamoto, Porsche Design and Rolland Berry. That said, the company does not sacrifice its commitment to improving sporting performance and aims to launch at least one major new technology or technological evolution per year. Even more than its peers, Adidas has put performance at the heart of its product portfolio and invests specifically to support this. R&D projects involve collaborations with professional and amateur athletes including Zinedine Zidane, Michael Ballack and Allyson Felix. In addition, Adidas works with clubs such as AC Milan and Bayern Munich to test and optimise products. Over recent years this has led to development of technologies such as ForMotion, which supports the core adistar and Supernova families, as well as the next generation of the Response and BOUNCE running shoes.

Alongside providing performance products, Adidas recognises that consumers make purchase decisions based not only on brand but also on availability, convenience and breadth of product offering. As a result the company has been refining its distribution proposition, concentrating on expanding its own outlets or ‘controlled’ space and improving retail relationships. There are now over 1000 Adidas stores around the world and, in the run up to the Beijing Olympics the company opened an average of two stores a month in China. By 2010, the aim is to generate at least 30% of the group’s revenues through controlled space.

To keep its brand in the public focus Adidas has also sponsored sportsmen and women for many years. In 2008, 295 footballers, 64 rugby players, 71 tennis players, 24 basketball players and 8 golfers all benefited from its three stripe logo. One of the first prominent endorsers of Adidas equipment was American running legend Jesse Owens, the gold medalist at the 1936 Summer Olympics. As well as sponsoring the Beijing Olympics Adidas is also supporting the 2012 Olympic Games in London in a deal worth around $200 million: in this sector such brand awareness is critical. Going forward, Adidas is also embracing a number of niche sports and lifestyle activities fuelled by the current trends in individualism, health and wellbeing with, for example, a new woman’s Yoga range. As it aims to take over world number 1 position in the sector from Nike, Adidas will be innovating incessantly both within existing sports and outside the core.

Reference: http://innovationleaders.org/as_company_profile.html

Synthesis:

Local brands can be considered as country’s best. Those products/brands are now successful in the market because of the uniqueness of the product. Even the product is usual they make a twist on it for it to be different with others. In Cherry Mobile they make one of their phone touch screen but it is flip from side (x90 blush) unlike other phones the flip of the phone is by flipping it up. It shows that good strategies in the product will make you on top. One of the reason why local brands keeps on growing because it is manufactured in the country so the raw materials and other materials have low cost and if the price is low people will tend to buy it. Especially when it is a part of everyday living like Nestlé, all of their products is needed by an individual, we all know that Filipinos love to drink coffe and they are offering a coffee that has an awesome taste.

In International Brands it is a well known products because it is worth the price. The service or product they are offering can satisfy a consumer. Like Samsung everytime they have a new brand of mobile phone it has an assurance that it will be click in the market because they improved or enhanced it into a new better phone with cool features. They keep on searching for the best next version of the product like Apple but the diffeence between them Samsung offers android phones while Apple is IOS. Adidas and Skechers come into the world of top brands because they are offering a high class of shoes not only running shoes but also trendy styles of shoes.

All in all for a brand to be in the top they should have a good and unique strategy. And also provide a high class product that have an assurance of being strong in the market.

HW 3.0

Standard

 

SillyBandz

1. Identify one fad product and show how it could be maintained on the market past its fad stage.

Silly Bandz

Silly Bandz are rubber bands made of silicone rubber formed into shapes including animals, objects, numbers, and letters. They are distributed by BCP Imports and are normally worn as bracelets. Silly Bandz retail in packages with themes like princesses or animals. A pack of 24 sells for about $5 and packets of 12 for about $2.50. Similar shaped silicone bands are also available under other brand names from a variety of companies. Silly Bandz have been banned from some classrooms for being a distraction. There have been incidents where children have caused serious injuries by extending too many Silly Bandz up their arms, cutting off circulation.

Origin and concept

Silly Bandz come in many different shapes and colors. On a wrist, they function like a regular bracelet, and when taken off they revert to their original shape. They are often worn many at a time and are traded like other collectibles. They can also be used for their original intent—as a regular rubber band.

The original shaped silicone rubber bands were created in 2002 by the Japanese design team Passkey Design, Yumiko Ohashi and Masonar Haneda. They made the bands in cute animal shapes to encourage sustainability by discouraging people from treating the rubber bands as disposable. Sold under the brand name Animal Rubber Bands, they won the Best Design award at the 2003 Japanese National Competition These bands were not widely distributed in the United States, but in 2005 they were local hits in Guilford, Connecticut and at the Design Store at the New York City Museum of Modern Art.

Robert Croak, owner of Toledo, Ohio-based BCP Imports (known for distributing the Livestrong wristbands), encountered the bands on a business trip and decided to re-purpose them as a toy by making them larger and thicker, and marketing them as a kids’ fashion accessory.

Distribution and reception

Several different brands of Silly Bandz type shapedsilicone bands

The first Silly Bandz sets were sold online in November 2008.In early 2009, Learning Express in Birmingham, Alabama became the first retail store to stock Silly Bandz. By fall they were a strong seller, and became widespread across the Southern United States. Popularity began to move up the East coast of the United States, reaching New Jersey, Long Island, and Staten Island in November the same year.

In April 2010 Silly Bandz retailed in packs of 24 for about $5 and packets of 12 for about $2.50. They are sold in packages with different themes, like princesses or animals.] As of August 2010, Silly Bandz sells their product in 8,000 stores across the U.S and many stores in Canada carry Silly Bandz too. In September 2010 Quiznos hadSilly Bandz in their kids meal. Seven spots on Amazon’s April 22 list of best-selling toys and games were occupied by the bracelets. One December 2010 article said that brands like Logo Bandz, Cool Bandz, Zany Bandz and Googly Bandz, sold by Wal-Mart, were easier to find than Silly Bandz. In 2010 and 2011 Silly Bandz released themed packs in collaboration with celebrities like Justin Bieber and Kim Kardashian.Custom Silly Bandz are available from BCP Imports in bulk orders starting at 5000 pieces. Custom packaging is also available with a minimum order of 25,000. In late 2010 Zoo Games released video games based on SillyBandz for Nintendo DS and iPhone. In spring and summer 2011 Winter’s brand chocolates of Peru included Silly Bandz, marketed in South America as Animaligas, in displays and packages of Chin Chin chocolates.

One parent attributed the toy’s success to their being easily lost and broken, and said that, “If your friend has the princess kind, then you have to have the princess kind, too.”Seth McGowan, a toy industry analyst for Needham & Company, said it is refreshing that the “lowest of technologies” is also the one that is the most appealing, to children. Silly Bandz have been banned in many classrooms for being too distracting, with students trading them with each other during class. There have been incidents where children have cut off circulation by extending several Silly Bandz up their arms, in some cases causing serious injuries.

Reference:

http://en.wikipedia.org/wiki/Silly_Bandz

“Silly Bandz.” Wikipedia. Wikimedia Foundation, 17 July 2014. Web. 19 July 2014.

Synthesis:

I chose silly bandz because we all know that in the year 2010 it boomed in the market but it is only re-produced. It is already made in the past years but the new creator made it more large and thick. Robert Croak the creator noted that his business grew tenfold within six months. He even sells millions of bracelets a week. And it simply shows that the time that they are on their fad stage they can maintained it well because the product can be sold easily and have high demand on the market. The high quality of the bands is one factor why is became popular. It is gone in the market because some students were being distracted on playing it. And there are cases at it causes injury because of the cutting of circulation because there are some people putting too much on their arms causing injuries. Even it causes some injuries it still reminds the happiness given by it. It really give happiness because of the bright colors and cute shapes I think that is also why it became popular even in a short period of time.

 

HW 2.0

Video

1. What are the common product positioning strategies? Give examples with pictures/videos/articles.

Product Positioning Strategies

February 27th, 2007

Positioning is what the customer believes about your product’s value, features, and benefits; it is a comparison to the other available alternatives offered by the competition. These beliefs tend to based on customer experiences and evidence, rather than awareness created by advertising or promotion.

Marketers manage product positioning by focusing their marketing activities on a positioning strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize the chosen positioning strategy.

Generally, there are six basic strategies for product positioning:

1. By attribute or benefit- This is the most frequently used positioning strategy. For a light beer, it might be that it tastes great or that it is less filling. For toothpaste, it might be the mint taste or tartar control.

2. By use or application- The users of Apple computers can design and use graphics more easily than with Windows or UNIX. Apple positions its computers based on how the computer will be used.

3. By user- Facebook is a social networking site used exclusively by college students. Facebook is too cool for MySpace and serves a smaller, more sophisticated cohort. Only college students may participate with their campus e-mail IDs.

4. By product or service class- Margarine competes as an alternative to butter. Margarine is positioned as a lower cost and healthier alternative to butter, while butter provides better taste and wholesome ingredients.

5. By competitor- BMW and Mercedes often compare themselves to each other segmenting the market to just the crème de la crème of the automobile market. Ford and Chevy need not apply.

6. By price or quality- Tiffany and Costco both sell diamonds. Tiffany wants us to believe that their diamonds are of the highest quality, while Costco tells us that diamonds are diamonds and that only a chump will pay Tiffany prices.

Positioning is what the customer believes and not what the provider wants them to believe. Positioning can change due the counter measures taken at the competition. Managing your product positioning requires that you know your customer and that you understand your competition; generally, this is the job of market research not just what the entrepreneur thinks is true.

Reference:

http://www.firstbestordifferent.com/blog/?p=105

“Niche Marketing Matters By John Bradley Jackson.” » Product Positioning Strategies. N.p., n.d. Web. 26 June 2014.

Synthesis:

The product positioning strategies are the key to a successful business. There are lots of strategies that can be use but before using those strategies we need to consider first what are the needs and wants of our target market because they are the one who is capable of producing our products and we cannot use strategies according to what we want it is always based on our consumers’ preferences. And also we need to know on what/where competition are we. The first strategy is by attribute and benefits, in that strategy we know that if mention the benefits that they will get they can think that it is for their own benefit also. Second is by use or application, with this our customers will know what are the possible usage of that product. Third is by user, it is like applying the basis of market segmentation, we need to know who will be the possible users/buyers of our product. Fourth, by product or service class, it is important to know what is the product or your service class is especially when your product is for teenagers and for infants. Fifth, by competitor, with this strategy we can easily identify who are our competitors in the business industry. Lastly is, by price or quality, in this strategy that customers will know how cheap or expensive your product is with your competitors.

The video above is the presentation of Samsung with their new Galaxy S5. I chose that video because it shows what are the benefits and special features of their product. In that presentation it shown how they improve their product because it based on what the customers preference, the people want a mobile phone that is not easily get low battery and some want a phone that is water resistant, they provide a product that suits on what is trend and they know that will be click in present time.

HW 1.0

Standard

 

1. What is Marketing? (Kotler’s Definition) Elaborate. 

Marketing is the art of creating and satisfying customers at a profit.

Synthesis:

For me, based on my understanding marketing focuses on customers/consumers. We need to satisfy or achieved their needs and wants because without them our company will be useless because no one will availe our product and services. We should conduct studies about what our customers needs and wants for us to develop a more satisfying goods and services. By doing that satisfaction or reaching what our customers expectations the company will run smoothly and will have a good image in the industry. In the market there are lots of competitions happening, to be able to keep pace we should do everything that is unique and our customer will love and will full their presumptions.

2. Enumerate and discuss the Goals of Marketing.

Increased Market Share

One goal of your marketing planning might be to increase your market share. This means you’ll have to take away business from the competition. It requires you to analyze your competitors’ prices, distribution channels, advertising and target customers. Some tactics, such as changing your target customer, might hurt you more than help you, while others, such as adding distribution channels, can help.

Developing Awareness

If you are operating a new business, one of your main goals is to increase awareness about your product or service. This requires a bigger focus on advertising, public relations and promotions rather than pricing and distribution channels. If you have been around awhile, your goal for increased awareness might be to target a specific segment of the marketplace that hasn’t been buying from you. Awareness campaigns often last a year or less, with advertising, PR and promotions spending dropping significantly after the campaign has introduced you to customers.

Creating a Brand

To maximize your sales with a specific target customer, convince him that your business offers something specific for him rather than a generic benefit. This means creating a brand, or image, that makes you desirable to a group of people who share certain age, race, sex or other demographic characteristics. Your marketing goal will be to identify the benefits a target audience wants, then to position yourself with consistent advertising, PR and promotions and support your branding efforts with the right pricing and distribution.

For example, if you offer a pet grooming service and want to target affluent pet owners, market yourself as convenient rather than affordable. Send fewer, attractive direct mail pieces to neighborhoods in specific zip codes rather than putting many photocopied fliers on windshields in large parking lots.

Improving Distribution

A key goal of marketing is to develop the right distribution mix. Don’t focus solely on sales when choosing distribution channels. Selling an upscale product in a big box can hurt your brand. Offering your product online might increase sales, but it might cost so much more to fill orders that you decrease your profit margins too much. Examine the sales volumes, profit margins and brand impact that different distribution channels offer your business.

Reference:

http://yourbusiness.azcentral.com/example-goals-marketing-plan-10680.html

Synthesis: 

There are different goals in marketing. We can set goals as many as we want but we have consider first some things before considering it as a goal. The first goal base on my research is Increased Market Share, even if the industry is not growing you can increased sales by increasing your market shares. But before doing that you have  to conduct some analysis about your competitors’ prices, distribution channels, advertising and target customers and by that you will be away from the competition in business because you need improve more and you’re not satisfied with your own strategy. The second one is Developing Awareness, this only last only less than a year. If you develop this you should know that you’re not only targetting those who buys from you but also those who is not buying from you. Third is Creating a Brand, this will help especially when you advertise it by saying that it will satisfy their needs and wants and it is according to their age, sex etc. and that is not for everyone. Last is Improving Distribution, you should be aware about your distribution mix. You should not just entering some channels without knowing what will be the effect of it when it is done.

3. Discuss the concept of customer value and its importance to successful marketing.

This customer value is weighed against the customer values assigned for similar products and services that provide a similar benefit. Consumers will typically purchase the item with the highest customer value among all offerings in the marketplace. When you are deciding where to go to lunch for example, do you consider Subway to have a higher customer value than Burger King?

Every consumer has a unique set of needs and resources, so no two consumers will place the same customer value on the same product or service. The highest-quality product or service does not always provide the highest customer value, since the benefit of each item is measured against the cost. Some consumers are willing to pay a high price for a quality product or a high level of service, but others will make the decision that the same benefits ‘are not worth the price’.

On your next vacation, would you rather stay at the Marriott or the Quality Inn? The Marriott will provide you with a nicer room, a fancier lobby, and room service, but you might rather spend the money you save by staying at the Quality Inn on souvenirs.

How is Customer Value Delivered to the Customer?

There are three ways a company can establish customer value to its customer base:

Provide the consumer with the best cost. Companies can choose to focus their efforts on providing a reliable product at a reasonable price. The low price helps to increase the value of their offering to their consumers even if it is weighed against a low benefit. For example, you might place a high customer value in a meal at a McDonald’s restaurant because you know you will receive a consistent, satisfactory meal at a low price.

Provide the consumer with the best product. Companies that offer top quality products increase the customer value of their offerings to their consumers by providing a high benefit which exceeds the high cost. Lexus, for example, makes a luxury car that many consumers consider to be top quality. Lexus, along with other luxury car manufacturers, is able to charge a premium price for their cars, since they consistently produce cars of this high quality in the minds of their consumers.

Provide the consumer with the best service. Companies that provide a high level of service to their consumers increase the customer value of their services by providing a high benefit which exceeds the cost for many consumers. Consumers who buy from these companies are willing to pay more to be treated with exceptional service. The retailer Nordstrom, for example, has legendary customer service that is unmatched in the retail industry.

Why is Customer Value Important?

In order for a company to make any sales, their products and services must have a customer value in the minds of their consumers higher than that of similar offerings by competing companies. When companies make marketing decisions, such as making changes to the quality of their products or changing the price of their products, they must consider the impact that the change will have to the customer value that their consumers currently place on their offerings. For example, if Subway changed the price of their $5.00 subs to $15.00, would you still place a high customer value on a Subway sandwich?

In order for a company to succeed, they must find consumers who consider their offerings to have the highest customer value when compared to other offerings in the marketplace. Once these consumers have been identified, companies must make every effort to ensure that their products and services consistently create the highest customer value to these consumers when compared to all of the other choices in the marketplace.

Reference:

http://education-portal.com/academy/lesson/what-is-customer-value-marketing-definition-quiz.html#lesson

Synthesis:

Customer Value is the term used on how the customer analyze the benefits of them in a product at a cost. As we all said that every individual is unique, every consumer has their own preferences in buying items depending on the customer value to them. Customer value is important in companies because they would know if their company is leading to others. They should have the high customer value for them to succeed in their business. If the consumers chose your company you should provide them a consistent or even improve your products or services for your company to be the highest rating among your competitors.