I am currently doing my senior capstone project on the Burberry Company. In my research I came across something interesting pertaining to online sales and the reach of those online sales. I was shocked to see that Burberry does not offer online sales to some of the world's largest and upcoming markets like, Asia, the Middle East, and India. There is no reason for this to be true.
Burberry currently only offers online sales to the US, UK, and some European countries. My capstone group is looking into this situation. I believe that Burberry should begin to offer this convienent feature to these demographics because of the current state of the worldwide economy. By bering able to reach these under penetrated markets Burberry could help lessen the total effects of this economic downturn.
The Asian, Middle East, and Indian markets are important up and coming markets to sell product in. Especially because the luxury industry that Burberry is involved in is starting to feel the pressures of the economic downturn.
Friday, January 30, 2009
Thursday, January 22, 2009
EBay's Growth Stalls as Shoppers Pull Back
http://online.wsj.com/article/SB123257451678903687.html
Today E-Bay announce that their 4th quarter profit fell 31%, this is the first time in E-Bay's history that they did not have a quarterly growth in profit. E-Bay's CEO John Donahoe, contributed this decline to the slowing world-wide market. I think that using the grave condition of the economy as a reason for the decline is an easy excuse.
In this article they go on to say that E-Bay is losing sales to Amazon and other online sites that prodived fixed prices for their products. I like Amazon a lot for then E-Bay because of it's fixed price feature and the prices are in most cases lower are lower on Amazon. You also deal directly with Amazon for shipping and dont have to worry about not recieving your product that you bought.
Overall, I think that E-Bay's sales will increase but the competition is catching up to E-Bay.
Today E-Bay announce that their 4th quarter profit fell 31%, this is the first time in E-Bay's history that they did not have a quarterly growth in profit. E-Bay's CEO John Donahoe, contributed this decline to the slowing world-wide market. I think that using the grave condition of the economy as a reason for the decline is an easy excuse.
In this article they go on to say that E-Bay is losing sales to Amazon and other online sites that prodived fixed prices for their products. I like Amazon a lot for then E-Bay because of it's fixed price feature and the prices are in most cases lower are lower on Amazon. You also deal directly with Amazon for shipping and dont have to worry about not recieving your product that you bought.
Overall, I think that E-Bay's sales will increase but the competition is catching up to E-Bay.
Wednesday, January 14, 2009
Sprint's Plan To Undercut The Cell Phone Market
http://online.wsj.com/article/SB123199251112984943.html
Beginning on January 22, Sprint's Boost Mobile Company is going to offer a $50 a month unlimited plan. This plan includes unlimited text, calling, and internet. I am upset about this because I currently have a Sprint phone and I am paying $99 a month for the "everything plan". This new offer is Sprint's attempt to undercut the market by being the lowest cost producer.
Boost Mobile is trying to change its image from just being a small cell phone company for the younger generation. Their hope is to appeal to consumers who are looking to save money. There is a danger that they can upset their traditional consumer base, but Boost feels like all consumers including their younger audience will enjoy this new offer.
Personally, I would never buy a Boost Moblie phone because I really don't no a lot about the company. But I think this is a smart move by Sprint to try to increase the number of users they have in a struggling sector.
Beginning on January 22, Sprint's Boost Mobile Company is going to offer a $50 a month unlimited plan. This plan includes unlimited text, calling, and internet. I am upset about this because I currently have a Sprint phone and I am paying $99 a month for the "everything plan". This new offer is Sprint's attempt to undercut the market by being the lowest cost producer.
Boost Mobile is trying to change its image from just being a small cell phone company for the younger generation. Their hope is to appeal to consumers who are looking to save money. There is a danger that they can upset their traditional consumer base, but Boost feels like all consumers including their younger audience will enjoy this new offer.
Personally, I would never buy a Boost Moblie phone because I really don't no a lot about the company. But I think this is a smart move by Sprint to try to increase the number of users they have in a struggling sector.
Thursday, January 8, 2009
Thoughts On The 2009 Consumer Electronic Show
http://online.wsj.com/article/SB123138754279863721.html
The Consumer Electronic Show is one of my favorite things to investigate. Every year a company puts something out that revolutionizes an industry. This year I think that the winner at the electronic show in vegas is the powermat wireless charging system. This is an awesome invention. Instead of having 6 different power cords for your cell phone, i pod, digital camera and so on; you can have just one powermat the charges all of your electronic items at one time without any cords. This is a great idea! The product is going to be released in the Fall of this year and is going to be sold for $100.
The Consumer Electronic Show is one of my favorite things to investigate. Every year a company puts something out that revolutionizes an industry. This year I think that the winner at the electronic show in vegas is the powermat wireless charging system. This is an awesome invention. Instead of having 6 different power cords for your cell phone, i pod, digital camera and so on; you can have just one powermat the charges all of your electronic items at one time without any cords. This is a great idea! The product is going to be released in the Fall of this year and is going to be sold for $100.
Wednesday, December 17, 2008
Online Video Ads
http://online.wsj.com/article/SB122938787020808913.html
The recession is hitting every market hard right not. That includes to my surprise, the online video ads market. Projections for the total amount of money being spent on online ads in 2008 was $850 million, which is a 45% increase of the total spending in 2007. But the real number are starting to come in and the true numbers are falling well short of expectations, but the spending is still increasing.
Some believe that the total online ad spending is down because of the recession, while other think that it has to do with the lack of overall efficiency becuase of the lack of a true viewing format and due to high placement prices. There are also many different sites on which NBC, CBS, and ABC shows are being viewed on which affect which type of person is viewing the video and that is trouble for marketers who are trying to appeal to certian markets.
I think that online shows should have no commercials. I believe that sponsors should just pay for the entire show to be commerical free. The sponsors would get a commerical at the beginning of the show and one during the middle that only last about 5 to 10 seconds. They are starting to do this on real TV sometimes for big events. I think that this world work best for online viewing because people are going on their for convienence and dont want to waste their time watching worthless commericals.
The recession is hitting every market hard right not. That includes to my surprise, the online video ads market. Projections for the total amount of money being spent on online ads in 2008 was $850 million, which is a 45% increase of the total spending in 2007. But the real number are starting to come in and the true numbers are falling well short of expectations, but the spending is still increasing.
Some believe that the total online ad spending is down because of the recession, while other think that it has to do with the lack of overall efficiency becuase of the lack of a true viewing format and due to high placement prices. There are also many different sites on which NBC, CBS, and ABC shows are being viewed on which affect which type of person is viewing the video and that is trouble for marketers who are trying to appeal to certian markets.
I think that online shows should have no commercials. I believe that sponsors should just pay for the entire show to be commerical free. The sponsors would get a commerical at the beginning of the show and one during the middle that only last about 5 to 10 seconds. They are starting to do this on real TV sometimes for big events. I think that this world work best for online viewing because people are going on their for convienence and dont want to waste their time watching worthless commericals.
Thursday, December 11, 2008
The Best Vending Machine Ever!
http://online.wsj.com/article/SB122895835251696731.html
Redbox is the greatest vending machine/movie rental store ever! In case you didn't know Redbox is a vending machine that is basically a mini and super cheap and convenient movie store. They are located in front of many popular stores (McDonald's and Gaint Eagles). Redbox only charges $1 to rent all new and old movies and they also have a cool feature where you can buy the used movies for $9. This new technology and service is not a big hit with everyone.
Currently Universal Studios and Redbox and in an on going battle. Universal believes that Redbox is ruining the sales and rentals of their new videos. This is because Universal usually charges around $20 to buy their newly released movies. Universal is trying to stop Redbox from purchasing and distributing their movies currently. They have also tried to lay out a new plan for Redbox, which would only allow them to have 8 copies of a movie in their kiosks. Redbox would also not receive the movie until 45 days after its release date. I think that this plan by Universal is a horrible idea. Instead of trying to change this new way of business I think that they should adapt to it and lower their prices.
Redbox's low prices are also hurting the sales of Blockbuster and other movie rental stores. Conventional movie stores can not compete with the price that Redbox is offering because they have pay for their buildings and pay for staffing. Redbox does not have to deal with any of that. That is why I believe that Redbox is one of the greatest inventions/ideas ever! Low cost. High profit!
Redbox is the greatest vending machine/movie rental store ever! In case you didn't know Redbox is a vending machine that is basically a mini and super cheap and convenient movie store. They are located in front of many popular stores (McDonald's and Gaint Eagles). Redbox only charges $1 to rent all new and old movies and they also have a cool feature where you can buy the used movies for $9. This new technology and service is not a big hit with everyone.
Currently Universal Studios and Redbox and in an on going battle. Universal believes that Redbox is ruining the sales and rentals of their new videos. This is because Universal usually charges around $20 to buy their newly released movies. Universal is trying to stop Redbox from purchasing and distributing their movies currently. They have also tried to lay out a new plan for Redbox, which would only allow them to have 8 copies of a movie in their kiosks. Redbox would also not receive the movie until 45 days after its release date. I think that this plan by Universal is a horrible idea. Instead of trying to change this new way of business I think that they should adapt to it and lower their prices.
Redbox's low prices are also hurting the sales of Blockbuster and other movie rental stores. Conventional movie stores can not compete with the price that Redbox is offering because they have pay for their buildings and pay for staffing. Redbox does not have to deal with any of that. That is why I believe that Redbox is one of the greatest inventions/ideas ever! Low cost. High profit!
Wednesday, December 3, 2008
More Problems For Retail Stores
Retail stores are going through a rough time right now. With the all the economic problems Americans are facing today, retail stores are showing lower earnings and profits, which in turn leads to layoffs. In an article that I read today in the Wall Street Journal (http://online.wsj.com/article/SB122831827531375837.html), retail stores are facing another problem, online merchandisers and stores.
Online retailers are becoming a major competitor and alternative to old school retail shops and stores. Online sales for the holiday season are expected to be up from last year and Black Friday online sales were up 15% from last year. Many experts believe that the reason why online shopping is becoming more popular because off the super discounts that they offer in addition to the free shipping that is becoming a staple in the online sales world.
I think that traditional retail stores will always be a vital way of shopping because people sometimes need to see, test, and feel what they are buying. But I believe that online sales will continue to increase, so retail stores need to start focusing on developing their online sites, in order to capitalize on this new and growing market.
Online retailers are becoming a major competitor and alternative to old school retail shops and stores. Online sales for the holiday season are expected to be up from last year and Black Friday online sales were up 15% from last year. Many experts believe that the reason why online shopping is becoming more popular because off the super discounts that they offer in addition to the free shipping that is becoming a staple in the online sales world.
I think that traditional retail stores will always be a vital way of shopping because people sometimes need to see, test, and feel what they are buying. But I believe that online sales will continue to increase, so retail stores need to start focusing on developing their online sites, in order to capitalize on this new and growing market.
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