Industry Analysis for 3M Greptile Golf Glove

The golf industry is a growing one, with a worth of approximately $300 million worldwide, with $160 million in America alone (Kerin et.al 2006). In recent times, golf has become an increasingly popular: a sport that is played for various purposes (e.g. recreational, professional, and business).

According to ‘Golf Digest’ (2005), there are approximately 32,000 golf courses in the world. In addition, The Golf Research Group (2006) reports that there has been an increase of about 7,000 new courses since 2005, with courses in 119 countries: there are about 56 million golfers in the United States of America, who constitute 59% of the golf market worldwide.

As a result, the increased number of golf courses and people who play golf has contributed to the flourishing international trade in golf goods worth about $2 billion per annum (The Golf Research Group, 2006). This growing trend has led to the increase of golf related industries like golf clubs, gloves, shoes, and even tourism in the form of specialized golf vacation packages and the development of... Read more>>

Hyundai Motors Part 2 - Entering The High End Automobile Market

Discuses some of the challenges Hyundai Motor is likely to face in trying to reposition itself as a premium automobile brand, with its new premium model, the Genesis.

As Hyundai Motor tries to reposition itself as a premium automobile brand, one of the biggest challenges the company faces is its perception problem; being perceived as a manufacturer of entry-level cars and lack of prestige amongst consumers. This is evidenced in the first quarter sales of the Accent (least expensive car) increasing by 74%, while the Sonata sedan (more expensive) was down by 30%. (Gidman 2007) Hence, Hyundai Motor has the challenge of trying to change (improve) consumer brand knowledge, and convince consumers that they are capable of producing premium cars with prestige, which still maintains the company’s trademark affordability and durability.

Although Hyundai Motor has come a long way since its days of being branded as the “Worst Car Ever Made”, the notion amongst consumers that the Hyundai brand is inferior to Japanese car manufacturers such as Toyota and Honda is still prevalent. Gidman (2007) mentions that according to a May 2007 Business Week article, 71% of people who viewed an unidentified car without any Hyundai logo on it said that they would buy it, if a Toyota logo was on the car they were 20% more likely to purchase the car. However, once the Hyundai logo was shown, those willing to drive it out of the showroom dropped to 52% (lack of prestige).

As with any product line or family that is extended, there is always a risk of cannibalization. One such example can be seen when the sales of the Tucson affected the sales of the Santa Fe: the Tucson’s similar size and more affordable (cheap) pricing was the reason for the drop in the sales of the Santa Fe. (Ward's Dealer Business 2005) In its attempt to create a more up-market image for the whole brand with its latest luxury offering – the Genesis, sales of its other models may be affected or vice versa (Eisenstein 2008)...Read more>>

Hyundai Motors Part 1 - Hyundai Motors Success

Factors that have contributed to Hyundai Motor's success:

• Brand Equity:
The initial failure of the Excel propelled Hyundai Motor to improve their product quality and regain consumer confidence by "adding an unprecedented 10-year/100,000-mile powertrain warranty—assurance to buyers that the car wouldn't fall apart on the turnpike while speeding along in the passing lane" (Gidman 2007).

Due to its efforts, Hyundai Motor was able to reposition itself as a producer of affordable cars (with quality), and consumers overall confidence in the Hyundai brand improved. As a result, Hyundai Motor has since been recognized as a producer of quality cars which are reliable and affordable; being ranked 72nd in the 2007 Best Global Brand survey. Bunkley (2008) quoted senior director of automotive testing at Consumer Reports, David Champion, that Hyundai has made "phenomenal progress" in the quality and reliability of its vehicles.

Being focused on the consumer, and improving in areas such as quality, durability, value and warranty programs have contributed to the success of Hyundai Motor's brand equity. The company's focus on affordability and practicality, unlike its competitors (e.g. BMW choosing to focus on technology), set it apart from its competitors and contributed to its success. (Vasilash 2006)

• Product Differentiation:
By improving (augmenting) its cars' exterior design and engineering, while still maintaining its affordability, made it appealing to consumers and improved its brand image (from being the "Worst Car Ever Made"); giving it a competitive edge. For example, "Hyundai's sleekly redesigned flagship" - the Sonata - was equipped with "six airbags, electronic stability control and a long list of standard equipment, all for less than $20,00″ (Muller & Meredith 2005). Hence, according to Muller & Meredith (2005), "Hyundai is now dictating trends that others must follow": the company's "success with cheap cars inspired General Motors to buy its own Korean company, Daewoo, to try to match Hyundai's offerings", and "Hyundai's breakthrough ten-year, 100,000-mile warranty spawned extended warranty offers by Chrysler and Mitsubishi"...Read more>>

Three Limitations of Secondary Data

Firstly, secondary data (Hair et. al, 2009) may be designed in a biased manner towards the original study purpose. Hence, data will have to be carefully evaluated to determine if it suits the current research purpose: prior data manipulation may render the data unsuitable for present study purposes (i.e. if data had been manipulated to suit the previous research objectives, it renders the data less suitable for use in the current project).

Secondly, data relevancy affects the suitability of secondary data meeting the needs of the current problem. The time frame in which secondary data was collected will affect data relevancy and usability: secondary data not reported in the desired units of measurement could be misleading. Inconsistency in summarizing categories, different or undefined reporting periods, leads to incorrect inferences, as data conversion often is not an option... Read more>>

Exploratory Research Methodology Example

To understand Hong Kong consumers better, a Singaporean food company plans to do preliminary exploratory research through focus groups. This provides details for a proposal to describe how focus groups can be conducted for the company (e.g. selection criteria for respondents, number of sessions, participants’ profiles, location of study, etc).

The proposed methodology is to combine literature review and a focus group (in-depth) interview process. The purpose of the focus group would be to gather and explore perceptions, thoughts, opinions and preference (i.e. whether Hong Kong consumers would eat Singaporean food, their frequency of eating Singaporean food and its popularity). This would able the company to assess the Hong Kong food and beverage industry with minimum cost and time possible, providing in-depth knowledge about their potential customers and determine if there is a market (opportunity) for the company.

As it is difficult to predict the number of participants that will turn up for the group session, 12 people will be invited. The size of the focus group will consist of 8-12 people, 8 being the minimum and 12 the maximum (i.e. 12 people agree but only 8 people show up). This is to generate the right type of group dynamics/energy necessary for a beneficial group session.

The proposed number of focus group sessions is 4. However, the number of sessions may be continued until the different groups of participants offer no more new ideas, thoughts or feelings. Each session will comprise of 90 minutes, but may be extended to 2 hours. Hence, to encourage participants to attend the scheduled session on time and remind them that their commitment to participate is worth the effort, a $50 incentive will be given to participants... Read more>>

5 Types of Secondary Data

In marketing research, there are two types of data: primary and secondary. Primary data is data that has to be collected and analyzed from scratch, while secondary data refers to data that already exists and was gathered for purposes other than current research project. It is increasingly used to examine a wide variety of marketing and business problems because of the relative speed and cost-effectiveness of obtaining the data. Below are 5 types of secondary data that a company that can collect to help it decide whether it should go into a new catering business (Hair et. al, 2009):

1. Sales data - Sales Activity Reports (Internal)
These reports contain data on sales, competition, territory activities, and changes in the market place (if it is competitor intelligence, it is not considered internal data) , enabling the company to identify potential target markets, sales trends and competition. With this data, the company would be able to forecast future sales trends and revenues for its catering business. For example, the daily sales activity report would provide the company with insight: the monitoring and identifying of sales frequency (i.e. cyclical nature of the sales – sale increase during festive seasons) would enable the company to formulate its marketing strategy appropriately (i.e. set promotions and pricing), or translate the data for other expenses (i.e. price promotions may boost sales volume but does not generate profit)...more >>

Environment Analysis of 3M Greptile Golf Glove

Economic conditions and trends:

Between 1999 and 2004 household income stagnated showing a slight increase since 2004. While personal income has remained relatively stagnant since over the past few decades, household income has risen due to the rising percentage of households with two or more income earners. The rising of household income has brought opportunities to companies that they might spend their extra income to wants. The increasing dual income family might rise the demand for business women who also demand golf as their sport

As golf gloves are not considered as necessities, the rise of income (affluence) may affect the sales of golf gloves. Since 2004 household income has shown a slight increase. Thus it may trigger people to spend their extra income on satisfying their wants. This was an opportunities for 3m firm to launch and promote the Greptile golf glove as those golfers might look after products that can satisfy their hobbies or recreation on golf... more>>

Brand Asset Valuator (Bav) - Carl's Junior

The Brand Asset Valuator (BAV) model states that there are four key pillars (components) of brand equity. Using the four pillars, evaluate the brand equity of Carl's Junior.

Differentiation

What sets Carl´s Jr.® apart from other fast food restaurants (brand equity) is its emphasis (product differentiation) that their burgers (bigger portioned) are charbroiled over an open flame (taste), the free flow of drinks, along with a condiment bar, 14 types of sauces and a range of salads; giving it competitive edge over competitor offerings by providing something different. Thus, contributing to its reputation for great tasting food, and the company has since evolved into one of the major players in the quick service industry. (Carl´s Jr.® Singapore 2006)

As a result, Carl´s Jr.® is able to command premium prices, unlike competitors such as Macdonald’s and Burger King: from $4.20 for its cheapest burger (Carl's Catch) and up to $8.50 for its expensive burger (Double Guacamole Bacon Cheeseburger) (Mak 2005). The steadily increasing number of outlets in Singapore (from 2 outlets in 2005 to its current 4 outlets), is an indicator of brand vitality (Carl´s Jr.® Singapore 2006).

Relevance

Carl´s Jr.® has managed to establish itself as “the place to go for juicy, premium quality charbroiled burgers” (Carl´s Jr.® Singapore 2006). The appeal of bigger (portioned) hamburgers... Read more>>

Affiliate Marketing

Affiliate marketing is a business whereby an affiliate is rewarded for each customer he adds to the business through his efforts. This affiliate marketing strategy involves rewards like cash benefits, gifts, reward sites and various others. Due to the efforts of the affiliate the whole business as a whole increases and a commission as a result is well deserved.

Affiliate marketing is similar to the marketing strategy employed by the internet marketing strategies to some extent because advertising is a prime tool. The affiliate marketing strategies are less orthodox than the internet strategies however.

Internet marketing affiliate programs involve e-mail marketing, search engine optimization, various paid marketing method and display advertising. However the affiliates marketing involves publishing of various reviews of the products and services that are offered by the partner site. This leads to transfer of a proportion of traffic from one site to another. This is often overlooked and disregarded by the advertisers but the affiliates marketing strategies still hold a position in...Read more>>

Why a Franchise May be The Right Choice For You

Discusses the costs, benefits, and reasons for success or failure of franchise operations.

Costs:

Obtaining the right to use the franchisors name and its assistance may require several thousand to several hundred thousand dollars. The following is a breakdown of fees involved in operating franchises (Franchising World 2005):

• Initial Franchise Fee and Other Expenses - This is the initial franchise fee, which may be non-refundable, and includes other costs such as:

• Business or operating licenses and insurance

• Costs to rent, build, and equip an outlet and to purchase initial inventory

• Grand opening or other initial business promotions

• Product or service supply costs

• Real estate and leasehold improvements

• Training costs Financial and accounting advice

• Legal fees

• Discretionary equipment such as a computer system or business alarm system

• Advertising fees- Franchisees may have to pay into an advertising fund, with some portion of the advertising fee going for national advertising or to attract new franchise owners, but not to target the franchisee’s particular outlet... Read more>>
  

How to Get That Perfect Designer Handbag Without Having to Spend a Fortune

Want to have that designer handbag, but just don't have enough money for it? This article mentions how you can get that perfect designer handbag without spending a fortune...

With its fast moving fashion cycles, the fashion industry is a highly competitive, and global industry that is worth millions. According to Fenton (2008), due to the notion that fashion is associated with affluence, glamour and status, many consumers (in particular women) are "willing to spend their savings on designer fashions".

There is a growing market for rental luxury goods, as there is an increasing trend among consumers to believe that they are entitled to have the best things in life. However, not many of these consumers have the ability to obtain a lifestyle that is beyond their purchasing power. (Evers 2006) Being a fairly recent concept in the fashion industry, designer item rental is a concept that responds to the needs and wants of modern consumers (mostly women); empowering them with choices within their purchasing power.

"Now, instead of consumers having to trade down expectations to mainstream versions of luxury products, or forgoing essentials to afford one premium brand" (Evers 2006, p8), they can rent the luxury goods they want, whenever they want. An increased awareness on the part of designers, coupled with the fashion industry's fast moving cycles, has also contributed to the rising popularity of designer item rental; as more companies, (e.g. BAG BORROW OR STEAL). (Liu 2007)

Consumers who own or desire luxury goods are fashion-conscious, trendy fashionistas who not only want the associated prestige and status which accompany the brand(s) they carry, but also the perceived aesthetic appearance and feasibility of the item. They have the need to be in sync with the latest fashion trends, and do not want to be the last in line in "owning" the latest designer fashion item...Read more>>