Tiffany Needs Silver-Linings Playbook

     Tiffany & Co. has been in the jewelry business for 175 years.  Tiffany's silver jewelry is a big reason for their success mainly because it is less expensive than their other lines and it carries a higher profit margin.  Also, rivals of the jeweler would discount their jewelry while Tiffany's would not.  However, in recent times this line has decreased in profits mainly because Tiffany's did not update the selection quick enough as well as the poor economy.  This isn't the first time Tiffany's had a problem with their silver line.  About a decade ago it was too popular among the teenage population and Tiffany's was afraid it was effecting their high end image so they raised the prices.  Tiffany & Co. are developing new products and new lines in hopes to turn their sales around.
     I think every woman in the U.S. knows what Tiffany & Co. is, and they know it is a very expensive jeweler that many of us cannot afford.  Their brand image is of upscale and luxury.  I can understand why they are hurting in this economy.  They definitely need to strategize to turn this around.  I think their silver line is a staple and can never go out of style so they should of never raised the prices.  If the teenagers are willing to spend their money on the products Tiffany's should be happy and accept the sale.  Tiffany's would still be known for their high end and diamonds...their image would not be hurt.

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That Fuzzy Truth in Labeling

     The Federal Trade Commission has mandated three retailers to 20-year orders requiring them to abide the Fur Act.  The U.S. Fur Act covers the naming, advertising, and labeling of fur.   This Act has been in existence since 1951 and "requires retailers to tell customers where a fur comes from, the animal from which it derived, and if it is used or new fur.  They also have to disclose if the product is 'composed in whole or in substantial part of paws, tails, bellies, or waste fur."  These three retailers were "misleading consumers by advertising products containing 'faux fur' that actually contained the fur of real, once-living animals.  Neiman Marcus, one of the retailers that got scolded claims their error was in the administrative department and not some sneaky plan to put real fur into the market.
     As much as companies try to label all their products and as much as consumers believe this labels there is always room for error.  It can never be 100% accurate since there is always the chance of human error.  Hopefully, sometime in the future the chances of errors can be eliminated and there will be no more recalls or mis-leading information.  At least when companies are found out to be wrong there are warnings and punishments given to them so at least this pushes them harder to be as close to accurate in their information provided as possible.

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Starbucks Buys Its First Coffee Farm

     Starbucks a dominant force in the coffee world has recently bought a 600-acre farm in Costa Rica.  This is Starbucks first farm and they plan to "develop new coffee varieties and test methods to eradicate a fungal disease known as coffee rust that is vexing the industry."  Starbucks hopes to continue to be innovative in ways they were unable to do before the purchase of the farm.  The coffee rust fungus is quite a concern that is becoming more apparent and it is effecting the forecasts for coffee production.  Starbucks hopes to find the cause of this fungus and put an end to it.
     As I mentioned in an earlier post I love coffee!  Starbucks is definitely a not to miss stop at least twice a week for me.  The whole brand of Starbucks including coffee is a win win for me.  They are the leader in the coffee industry and they clearly will continue to be so with their innovation.  The purchase of the farm is just another step in the right direction for them.  The research that Starbucks will aquire from the farm will create some great new coffees!  Hopefully, they will also solve the problem of the coffee rust.

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A Toy Maker Comes Home to U.S.A.

     K'Nex Brands LP, is family owned  toy company located in a suburb of Philadelphia.  China has long been the source of production for their products but over the past few years they have brought much production back to the U.S.A.  Two ways they are able to do this is because they have redesigned some of the toys and given the children a job to assemble part of the two once its purchased and in their home.  There are many advantages for K'Nex bringing the production into the U.S.A.  First, now the production is closer to the retailers they are able to react faster to the demands.  Second, quality control is now better looked after now in the U.S.A.  Third, since labor costs in Asia are increasing immenseley it is not much cheaper anymore to produce in China verse America.  K'Nex's goal is to eventually move all production into the U.S.A.
     I was very happy after reading this article as "made in the U.S.A." is a huge importance now a days and many consumers are searching for this stamp on products before they purchase.  Especially with the economic downturn and the loss of many jobs people are trying to help out others by looking for this mark.  Besides that, toys specifically have very tough testing processes.  Many people do not feel safe with toys coming from China since there have been many incidents of recalls and failures in the not so distant past.  K'Nex will definitely get a loyal following of those consumers who buy only "made in America" toys.  K'Nex did not give up when problems arose but thought out strategies in how to attack the problems and so far it seems to be working!

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H&M's Sales Slump Again

     The once extremely thriving company, Hennes and Mauritz (better known as H&M), has declined in sales for the fifth month in a row. Their main struggle is keeping customers to continue to spend their money at their store in the very intense and very competitive fashion market.  H&M still is profitable, especially with the help of new stores openings in the past year.  However, their five month decline is the longest they have had since the spring of 2009 when the financial crisis hit.  H&M competes with their competitors by having lower prices since their supply chain is slower than others.  However, there are still competitors that have lower prices.  H&M is struggling to find how they want to position themselves.  "Bernstein analyst Jamie Merriman sees two choices for H&M.  Either it should cut prices to blunt the growth of lower-price competitors, putting further pressure on its margins.  Or it can back out of the bottom end of the market and target customers who are prepared to pay more for such products as its recently launched Conscious Collection of clothes made from organic cotton."  In January H&M revealed they are planning to create a new chain called Other Stories which will be aimed to a more affluent shopper.
     I love H&M.  I work close to a mall so I am frequently there on my lunch breaks and H&M is usually one of the shops I always check out since they always have the latest trends.  The article says that H&M is trying to find their position but I think they already have it.  Trendy clothes at a cheap price but not too cheap that the quality suffers.  I do hope H&M turns this around because they are a great store.  They need to continue to bring in the trend right clothes and the customers will buy.  They also will buy I believe if H&M takes one of the two strategies Bernstein suggested.  If H&M lowers their prices but does not sacrifice their quality this is a winning strategy.  Also, having more of a niche store such as Other Stories would be beneficial as it will target specific consumers and they will hopefully be pulled in.

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Help Wanted! Data,data everywhere - and not enough people to decipher it

     Many companies today are trying to gain a competitive edge by examining all their data as well as their competitors.  This is becoming a top priority for companies but easier said than done as companies need employees with the talent to search through the data.  "51% of surveyed IT professionals currently involved in big-data projects cited 'lack of expertise to connect the dots' as a reason projects fail in their organization.  No other factor was more commonly cited."  A few ways companies are trying to find this talent is through recruitment on college campuses, sponsoring computer-coding contests, as well as trolling industry conferences.
     In class we discussed different sources of data.  Secondary sources of data is what this article is about.  Many companies have tons of data piled up but no one to go through it and sort it out for them.  This is definitely a challenge for companies.  I think data mining jobs like this need to be more out in the open so people are aware such jobs exist.  I am sure there are many college students that are unaware of this field and if it was brought to their attention there would be more people in the field instead of there being a lack of talent.

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Wrigley's New Chewing Gum Packs a Dose of Caffeine

     Wrigley's is part of the Wm. Wrigley Jr. company, which is the largest gum company in the world.  The article states that they have a new gum, Alert,  coming out in April 2013.  This gum will be caffeine infused.  Their target audience are 25 years and older.  The concept and thought process behind this creation was to produce a "portable energy product that will let consumers control their caffeine consumption."  Just like the energy drinks that are out in the market Wrigley's too is receiving back lash against the gum for it's safety when used bykids and teenagers.  To combat this criticism Wrigley's has created a new brand and packaging for the Alert product line so it cannot be connected to the brands that the kids and teenagers are familiar with.  Wrigley's has decided to venture into this because the gum industry has been falling in popularity since 2010 and the caffeine infused products are so popular.
     Energy drinks and fancy coffees are all the rage so why not continue on that caffeine high and add caffeine gum into the mix.  I personally dislike energy drinks because I know they are extremely bad for you.  I had a few red bulls years ago and I hated the effect.  I could feel my heart beating so fast and there was nothing I could do.  I know Wrigley's is trying to be innovative and fill a niche but I think they could do this in another way. They could update their packaging or create new flavors.   I am sure Alert will be successful because so many people rely on their caffeine fix and gum is such a portable and easy product to keep with you.  Also, I know Wrigley's is branding Alert different than the other gums but it is still candy in the eyes of kids so I am sure they will receive more backlash once the gum hits shelves from parents and consumer groups.

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Facebook Unveils Changes to Its News Feed

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     Since many new social apps are flooding the market Facebook must continue to be creative and innovative in order to stay at the number one spot.  Their new way of doing this is by changing its news feed.  This change will "...include a more minimal design, larger images and new types of sub-feeds."  Facebook hopes that with this new change they will cause users to stay longer on the site and view more of the advertisements and brands.  Mark Zuckerberg the Chief Executive of Facebook describes the new format as being, "the best personalized newspaper."
     I am a pretty frequent user of Facebook.  Facebook is really the only social media tool I use.  Hearing about this new change is not really surprising since it seems there are changes and updates all the time.  The first version of Facebook was the best version in my opinion.  It seems all the changes they make do not agree with the majority of users and many complaints ensue.  I understand how Facebook wants to stay ahead of their competition but it seems like they throw out these changes without fully thinking them through and how they will effect the users.  I will be interested to see the new layout and if it is a crowd pleaser or not.

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Livestrong Seeks Life After Lance Armstrong

     The Livestrong Foundation was founded 15 years ago.  It is a charity that is devoted to helping cancer survivors.  It had a strong connection with former pro cyclist, Lance Armstrong.  However, with all the negativity surrounding Lance Armstrong the foundation is trying to move past that and become its own name again.  The charity has done many changes to lose the stigma attached with Armstrong.  They are increasing staff morale, added the word "Foundation" to its name, hired a crisis-communicatios firm, and moved its "call-to-action" day since the original date was the date of Lance Armstrong's diagnosis.  The new date is now the day of when the yellow wristbands were introduced.


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     I have known a few a cancer surivors as well as people who didn't win the fight.  Livestrong definitely was a positive reinforcement in helping one think they can beat the awful disease.  Yes, the story of Lance Armstrong before his fall from grace was a phenomenal story indeed.  However, I am sure there are tons of other stories just like his from other cancer survivors.  Lance Armstrong was the face of Livestrong but Livestrong is a charity that is more than just having a celebrity endorser.  I think the Livestrong Foundation is a great charity and will continue to thrive after the whole Armstrong scandal fades away.  The Livestrong Foundation has to continue on their mission and people will continue to respect them.  I know I will.

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TSA to Allow Small Knives on Planes

     Ever since September 11, 2011 the Transportation Security Administration (TSA) has been extremely strict on airplane security.  However, it was announced that in the near future there would be a change.  This change is that people will now be able to carry a small knife with them on the plane.  The knives do have to fit a certain criteria..."blades no longer than 2.36 inches and no wider than half a inch."  The purpose of this change is in hopes that it will cut down the security checklane process.
     I think this new change is absurd.  I travel quite a lot for my job so being on a plane is pretty familiar to me.  What else is also familiar is the long security lines beforehand.  Yes, these lines mean getting to the airport earlier than necessary and then standing in these lines for quite sometime but since it is a precaution so I can travel safely then that is fine by me.  It is not necessary for people to have pocket knives with them while on the plane.  If they want to bring them with them on their trip then they can check it with their lugguage.  The world is a scary place and people are crazy so there is no need to give unwanted actions an opportunity to unfold when they could be prevented.


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A Smart Investor Would Skip the M.B.A.

     This article discusses whether spending money on an MBA is really worth it or not.  The author believes that it is defintely not worth it.  He believes that networking and taking training courses on your own is far more important in succeeding than sitting in a classroom.  Networking is an invaluable trait and really can help one go far in their career.  The author asks the question of who you would rather hire..."the candidate who built a profitable business over the course of two years, or the candidate who sat in lectures and reviewed case studies to get a degree?"
     The question the author poses is a good one.  I think the person I would want to hire would be a combination of the two.  A person who has great social skills and someone who is book smart.  I think the person who is an either or option will only go so far in their career until they reach their limit.  Someone who has both traits, example ME, will hopefully have a competitive edge over other applicants and co-workers.  I think being well-rounded is a very positive asset so having the networking skills and M.B.A will be a double threat!

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Not All Sneakers Are Imported...Yet

     Pretty much all sneakers sold in the U.S. are not made in the U.S.  "New Balance Athletic Shoe is the sole athletic-shoe maker that still has factories in the U.S."  Sadly, this may not be for too much longer.  Tariffs on imported running shoes may soon be done away with.  This will put an end to their competitive advantage since their competitors will be able to afford to produce their products in the U.S.  99% of sneakers are imported to the U.S., with the majority of them coming from Asia.  There is a lot of competition between the U.S. and Asia in the production of sneakers.  Material costs, labor intensitivity, and the costs of labors are all main issues that these two countries compete over.
     I am not sure when this tariff decision will be made but I will be sure to keep an eye out for it.  I work in the consumer goods industry so I am well aware  of all the issues of domestic and imported costs.  I also know that the "made in America" logo on products is a big, big incentive for people to purchase even if the price is higher than what they are willing to spend.
     The tariff dilemma is just another external factor that New Balance will have to deal with via creating an effective strategy to combat it.  I think they should really showcase on their packaging and in the media that their products are made in the U.S and they are the original company to be doing so.  I had no idea that they were until I read this article.  I will just have to wait and see how New Balance will address the situation once the decision is made.

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Big Real-Estate Firms Are Going to School

Rendering of a student-housing community by Brandywine Realty and Campus Crest in Philadelphia.

     Off-campus houses are getting a HUGE makeover.  Many big name real-estate development companies  are breaking into off-campus college housing.  "The moves are designed to help the companies better weather the next economic recession by diversifying into areas considered less sensitive to downturns."  Also, many colleges and universities do not have adequate funds to create more on-campus housing.  Since there is the problem of not enough on-campus housing for students these new off-campus housing options seem to be the solution to the problem.  These off-campus housing buildings will be much more luxurious than on-campus housing since the developers are planning to include many upscale amenities to draw the students in.  Some amenities include tanning beds, resort-style pools, and ice-skating rinks.
     This article blew my mind!  I mean an ice-skating rink right outside your college apartment?!  I understand why these developers are going into the college housing sector but I think they need to tone it down a little.  Students are at college to learn not to have a 365 day tan.  Also, with these housing options and these amenities of course the places will be expensive.  Many students will not even be able to afford to live there.  Especially in today's economy and the increase in student debt.  Students are becoming more aware of all the loans they will accumulate while in college and I am pretty sure they are not going to want to throw additional charges of an upscale apartment to the list when they can find more functional and economical living arrangements elsewhere.
     It will be interesting to see how these luxury college housing arrangements will make out and whether they are a success or not.

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New Efforts to Shorten the Car-Buying Process

     The car-buying process is exactly what it says it is...a process.  However, many different car dealers are looking at ways to shorten the process.  A few ways this can be achieved is "...from mobile devices that can calculate a car's trade in value in the parking lot to expanded call centers to handle rising traffic from smartphone shoppers."  These are a great step in the direction of shortening the process since it still takes on average two to three hours to negotiate the deal.  This time does not include the additional time that is spent on all the research before the negotiation.
     I was drawn to this article because recently I have been starting to think of maybe, possibly getting a new car.  Reading this information about new ways to reduce the negotiation stress definitely is a plus.  In my marketing class we discussed the whole consumer buying process.  The steps or stages that make up the process are: need recognition, information search, evaluation of alternatives, purchase decision, and postpurchase evaluation.  Bigger purchases such as buying a car need all the steps to be looked at.  These steps especially need attention if somone is relatively new to the purchase.  For example...me in the car buying process as this will only be my second car.
     Car-buying is something that has a negative stigma attached to it because of all the time it takes and the haggling of the price.  The new efforts to ease the process will certainly be interesting to see if it changes the outlook of car-buying to a more positive experience.

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Macy's Strategy Paying Off

 
    This article discusses Macy's strategy and how it is working and helping to guide strong sales growth.  Macy's does admit that J.C. Penny's struggle is a help to their growth.  However, their strategy is the driving force.  Macy's strategy is made up of three parts.  First, Macy's "tailors merchandise to local tastes."  Second, they are pushing their online presence to be more well known.  Third, they have developed more intense staff training.
     Macy's is one of my go - to stores so no way would I pass up to discuss this article.  Macy's three-pronged strategy is definitely a step in the right direction.  The Macy's upper management team must of gotten their MBAs since their strategy matches up to everything I am learning in class.  Their strategy of merchandising to local tastes or localization, definitely is a competitive advantage and would be a strength in Macy's SWOT analysis.  This localization is giving customers product that is specific to their needs and only available at Macy's.  Macy's desire to have a stronger online presence is indicating that Macy's is innovative and keeping up with the changing marketplace.  The improvement of staff training can only enhance the customer epxerience and their loyalty to Macy's.

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"Checking In" with Female Travelers

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  "Today, women make up nearly half of all business travelers - and that number is projected to increase in the decades ahead."  There are many new marketing pushes towards the female traveler; for example, ladies only bathrooms on airlines and lighter-fare menus at hotels.  Even though there are some great initiatives there are still many challenges ahead.  To help with these challenges Hyatt Hotels put forth a project to get some answers.  The main conclusion that the Hyatt project found out was that female travelers main desire is to be accomodated.
     I chose this article for a few reasons.  One, is that I travel often for my job so many of the points the article discussed I could relate to.  I also chose this article because many topics that have been discussed in my marketing class were portrayed.  The article discusses how it is important for travel arrangements to be more personalized.  This ties in with marketing segmentation.  Years ago segementation was not available, it was a one and only kind deal.  However, with all the advances in marketing and technology, segmentation and personalization can be achieved.  Another topic from class discussed in the article is primary data collection.  The project Hyatt launched was achieved through primary data collection, specifically focus groups.
     This article was a great read and really helped connect the textbook I am reading for class and the real business world.

*This article is unavailable on WSJ.com*

Oscars Win Viewers, Appeal to Younger Set

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     This article discussed how the Oscars had their largest audience in three years.  The Oscars is a monumental television show each year.  "The Oscars rank as the second biggest draw in U.S. television after the Super Bowl...the show commands a global audience of some 1 billion."  Also, a fact about the Oscars that I was not aware of is that unlike other award shows the Oscars must deliver a certain number of awards on air.
     I am a huge fan of celebrities so I am sure to never miss an awards show! I personally think the Oscars this year was great!  Seth McFarlane did an excellent job as the host.  The feel of the show definitely was light-hearted and not as stuffy as previous years.  It seems the producers of the Oscars chose their target audience to be that of a younger age.  That focus paid off because it brought in the highest viewership of the show that it had in the past three years.  I think the producers should keep this focus for the upcoming years as they will continue to grab the attention of the younger viewers which can lead to loyalty to watch through the years.  Also, I think targeting the younger viewers is important since there are so many up and coming young actors and actresses.

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