juliagiovinazzo

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Disney+ Is A Threat To Other Digital Streaming Services

Article:https://www.businessinsider.com/disney-plus-streaming-subscriber-count-growth-50-million-2020-4?utmSource=twitter&utmContent=referral&utmTerm=topbar&referrer=twitter

Disney+ is one of the platforms in the digital streaming service industry. It offers everything from Disney, Pixar, Marvel,Star Wars and National Geographic. After launching in November 2019, Disney+ has reached 50 million subscribers as of April 2020. This streaming service is available across the globe including United Kingdom, France, Germany, Switzerland, etc. Most recently, Disney+ has become available in India. About 16% of all streamers reside in India. Although they beat Hulu, Disney+ still has to surpass Netflix who has around 167 million subscribers across the globe.

As for the product life cycle, Disney+ is in the market growth phase. This is after the product has been introduced to the industry and where the growth curve is very steep as it is gaining a lot of popularity among consumers. The Disney+ streaming service has one thing that sets it apart from other competitors in the industry- low cost. It is offered at $6.99 per month which is about half of Netflix’s monthly subscription fee.

Viewership is expected to continue to surge with the stay-at-home order in place across the country due to the COVID-19 outbreak. Disney+ and other streaming services are expected to see their numbers increase as many consumers are using digital streaming services for entertainment.

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Zoom’s Shares Are Zooming In Numbers

Article: https://www.fool.com/investing/2020/03/29/heres-why-zoom-is-no-one-hit-wonder.aspx

The video conferencing software application Zoom has experienced a rapid increase in usage in the last month. Schools, families and companies have been forced to self-isolate in their homes amid the coronavirus outbreak. Zoom has been able to fulfill the need for a remote method of working and staying in touch with family and friends.  Zoom shares have more than doubled and the revenue is also rapidly increasing.

Competitive advantages that have made Zoom very attractive to its users include the ease of use, zero cost factor and zoom phone option. The zoom phone option allows for a conference call without the video feature. The use of Zoom is expected to grow as the virus continuously spreads. Although it has gained popularity during the pandemic, it is not expected to stop growing after quarantine is over. Before the COVID-19 outbreak erupted, Okta ranked Zoom #7 for fastest growing app.

Zoom has done an amazing job at reducing customer friction by making it easy for consumers to use the software while adjusting to the new remote way of living.  Companies who have been displaced from their offices are using Zoom as a way of hosting conferences. Zoom offers high quality video conference with chatroom and many other features that could completely replace in person meetings. 

In addition to the competitive advantages, Zoom may soon be considered as a threat among other competitors in the video conferencing industry. According the Porter’s 5 Factor Model of Market Profitability, Zoom serves as a potential threat among other competitors in the industry such as Microsoft Teams. 

My overarching question is since Zoom has proved to be a successful method of working from home for both students and businesses, could this lead to more people working remote even after the pandemic is over?

[juliagiovinazzo]

Chief Executive of Ralph Lauren Using Alternative Growth Strategies To Grow The Global Fashion Icon

Article: https://www.nytimes.com/2016/07/08/business/ralph-lauren-looks-at-ford-turnaround-for-a-road-map.html

Ralph Lauren has been a global fashion icon ever since the beginning. The CEO, Ralph Lauren, has made the core of the brand both unique and original. He got his inspiration from Ivy League College students, British aristocrats and cowboys. As always, nothing good lasts forever and Ralph Lauren has been in a steep decline. In 2013, Ralph Lauren hit a peak share price of $188. Ever since 2013, the share price has been cut in half and has closed around $90 or less. Today, the share price is closing around roughly $69.

The Ralph Lauren business has been beaten down by changing consumer tastes and preferences, growing competition, steep discounting and slumping sales. Chief executive Stefan Larson has come in with a strategy called “The Way Forward” similar to Ford Motors “Way Forward” campaign in 2006. The Ford campaign saved the automotive company from bankruptcy in 2006 by slashing costs, reducing workforce, closing stores and improving quality.

The change in consumer taste and preferences could be due to the emergence and relevance of fast-fashion. This is where merchandise is inexpensive and mass produced. Brands like Shein, Zara, Zaful, Forever 21 are among the fast-fashion group. These younger generations are turning their heads away from traditional fashion brands and are more likely to purchase merchandise from these fast-fashion brands because “why pay more?”.

Larsson has been studying the strengths of the Ralph Lauren brand. Larsson found that at the core, the ideas of Ralph Lauren are what the younger generations are dreaming of today. In other words, the relevancy of the archives and original ideas of Ralph Lauren way back then are extremely relevant to millennials today. The new markets, such as the millennials will be attracted to the core aesthetic and ideas that Ralph Lauren curated from the beginning,  “We just have to make it current and evolve the product, marketing and shopping experience” This strategy ties in with the growth strategy of Market Development, expanding and targeting new segments, the millennials. They will execute this strategy by using previously existing merchandise and ideas to better resonate with today’s consumers. One question I do have about this article is even though we will be reaching younger generations with relevant fashion and ideas, will they be more willing to buy from the traditional brand with fast-fashion and inexpensive options still around? 

[juliagiovinazzo]

Could The Successful Amazon Book Store Strategies Hint The Future For Whole Foods?

Article: https://www.fooddive.com/news/amazons-bookstores-may-offer-glimpse-into-its-future-plans-for-whole-foods/507437/

Consumers who are shopping in the brick-and-mortar Amazon book stores report the experience as “feeling exclusivity”. The stores are a hit and have shoppers lining up around the block on the weekends just to get inside. Amazon is working to improve buyer operations buy adopting strategies that include product selection and in-store pricing. 

These book stores do not reflect the layout of Borders or Barnes and Nobles, who typically carry around 163,000 titles per store. Instead, Amazon Chain book stores focus primarily on a highly curated selection and low volumes of books. They reflect a boutique, carrying around 5,000 titles. This has shown to be a good strategy for the short-term.

As for in-store pricing, there are no prices on Amazon’s paperback or hardcover books. Shoppers are able to scan books with their phones or use the in store kiosks to find the price. This allows for price fluctuation. Prime members are also able to get deals on the books.

Amazon has an advantage when it comes to consumer information and buying habits. Out of the 30 million Whole Food shoppers, 62% of them are Amazon Prime members. Amazon has been thinking of using Prime as a Rewards program for the Whole Foods grocery shoppers. 

We are aware of how these strategies have positively engaged consumer shopping experience for the book stores. I do want to know how and if these strategies could be applied in Whole Foods stores to bring the level of consumer interest back up. Is it possible for a grocery store to inherit those tactics used in a book-store to engage consumer interest?

[juliagiovinazzo]

Investments in luxury plus-size startup 11 Honoré

Article: https://www.retaildive.com/news/nordstrom-invests-in-plus-size-startup-11-honore/567329/

For many years, retailers have failed to promote inclusivity in their brands for all different body sizes. Merchandise has had a small range of sizes to choose from, neglecting to recognize that people come in all different types of body proportions. In the last few years, there has been more of a discussion on diversity and specifically plus-size women. For example, the #AerieREAL campaign, where women of all different sizes are photographed in the apparel which has empowered women and increased sales worldwide. 

A luxury PLUS-SIZE startup 11 Honoré , an online retailer that focuses on plus-size apparel, has just revealed that they secured over $10 million from outside investors such as Nordstrom and Greycroft Partners. They are also partnering with Nordstrom to host trunk shows in locations such as Tennessee, Chicago, and Atlanta. This investment will help to support the growth and evolution of this startup e-tailer. 

“The startup said will further growth in its personal styling services, development of inclusive sizing at apparel brands and curation of more brands” (Retail Dive 2019).

This is a big deal for the retail industry because it is evolving the conversation surrounding body positivity and size inclusivity. I believe that 11 Honoré is going to develop deep, lasting, and emotional connections with their customers due to their primary focus on delivering plus-size luxury items for women. 

Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. This is a huge focus on a specific target market, the market segmentation here is plus-size women. 

E-commerce refers to commercial transactions conducted online. Right now, 11 Honoré is an e-commerce retailer. They are planning to open up brick-and-mortar stores in the future. 

As for the Kahn Retail Success Matrix, 11 Honoré has a competitive advantage over other retailers because it leads strongly in product brand because it is a plus-size luxury retailer. 

[juliagiovinazzo]

Could ever-evolving skincare replace prestige makeup?

Article: https://www.retaildive.com/news/as-gen-z-turns-away-from-makeup-beauty-braces-for-an-ugly-holiday-season/567158/

As a little girl, I have always loved to play with makeup. My mom used to buy me fake makeup until I was old enough to enter the real makeup market. I began to shop at Sephora and Ulta Beauty and I still shop at these retailers today. The cosmetic industry has had constant flow of consumers for many years because makeup has been a pivotal moment for all young teenage girls.

“That interest also meant a constant stream of customers for beauty retailers, as a new class of shoppers was continuously preparing to enter the makeup realm” (Retail Dive 2019). 

Shockingly, recent reports and analysts share that the cosmetics market has been weakening. Specifically, sales at ULTA BEAUTY and Estée Lauder (prestige makeup) have been plummeting . Those who are supposed to be the new class of cosmetic shoppers, generation Z, has turned away from the use and purchase of makeup and turned towards skincare. As skincare increases in popularity, the interest in makeup declines.The increase in sales for skincare is largely due to the innovation of new products which increases a consumers skincare routine and basket size.  Sales in skincare and makeup have an indirect relationship. This is because the evolution of skincare such as serums, oils, treatments are starting to replace to need to purchase and use foundation and concealer. This reflects a relatively large shift in consumer behavior. If skincare clears up your skin, there is less of a need to cover your face in foundation.

The advancement in research for skincare is really transforming the future of beauty and may permanently replace prestige makeup/weaken sales. Only the future will tell us whether or not heavy makeup usage will be trendy again. My theory is that skincare will eventually replace the need for heavy duty coverup with advancements in skin therapy take place. I do not believe that makeup will be completely be out of style and I do think it will start to make a comeback in coming years. 

[juliagiovinazzo]

Will healthy junk food take over the market?

Article Link: https://www.fooddive.com/news/can-better-for-you-junk-food-dominate-the-snack-segment/565713/

7 forces: Massive Data Collection

In class, one of the first things we discussed are the 7 forces that are transforming the retail industry. Massive data collection is one of the forces and has led to many discoveries and links. For example, studies have shown that junk foods share a link with childhood allergies and other illnesses such as cancer, diabetes, obesity and heart disease. This is due to the over-processing of these packaged snacks and the artificial ingredients they contain. With much data collection and research, these snack manufactures are swapping out the unhealthy ingredients and replacing them with vegan and gluten-free ingredients in addition to vegetables such as pees, carrots, etc. This is a winning tactic and marketing strategy.

https://www.target.com/p/annie-s-organic-cheddar-snack-mix-9oz/-/A-52089407

A healthy alternative to junk food is Annie’s organic, non GMO, baked snacks.

Demographic shifts:

Another important piece of content we discussed in class is demographic shifts and how it has a big effect on how it affects the retail industry. Specifically, generation Y or “millennials” have had a change in preferences regarding snacks for their children who are aged from 3 to 17. Millennials are more willing to pay for the healthy version of snacks for their children than any other generation. This demographic shift has lead to many retailers manufacturing healthy alternatives for snacks that the millennials used to indulge in many years ago.

Zollipops:

To relate this trend of healthy junk food alternatives to class, we had a speaker come in from ZolliPops to tell us about the delicious, sugar-free, diabetic friendly, keto, gluten-free, nut-free, vegan, natural candy. The zollipop has had huge success in sales and offers a “fake taste” of a real lollipop that which contains sugar and other unhealthy ingredients. On top of that, this candy also cleans your teeth! Zollipops replaced the active ingredient xylitol- which studies have shown it is linked with stomach aches- with erythritol, a healthier alternative. Zollipops come in many different flavors such as strawberry, grape, orange, etc.

https://www.target.com/p/zollipops-natural-clean-teeth-candy-3-1oz/-/A-75574413

[juliagiovinazzo]

Natty Light to Natty Seltzers

Article Link: https://www.foxbusiness.com/retail/anheuser-busch-natural-ice-hard-seltzer

Sales and product: 

Sales for spiked sodas and seltzers has skyrocketed in the last few years.These seltzers are attractive because they are stylish, offer many different flavors and are easy to transport around In 2015, the sales were around $115 million. This year, reports show that the amount jumped to $515 million. These carbonated alcoholic beverages are popular because they offer a crisp and clean taste at around 100 calories per can. Basically, seltzers allow for a good time of drinking at a lower amount of calories than your average alcoholic drink. Widely known seltzer brands are Truly and WhiteClaw. Recently, Bud Light has hopped onto this trend launching Natural Light Seltzers. In addition to their launch, they have priced these 6% alcohol beverages about 20% lower than most brands. 

The skyrocketing trend of Hard Seltzer WHITE CLAW

https://www.forbes.com/sites/andyswan/2018/07/23/hard-sparkling-dominating/#7337ad1d4ecb

Consumer:

In class, we learned a lot about the consumer and how they effect the retail industry. Ultimately, it is the consumer who decides what is relevant and trendy. In the hard-seltzer market, it is mostly college-aged people who are the consumer target market. For many years, college students have been known to drink Natty Light Beer, an extremely low priced watery beer. Ever since 2018, the new drink craze has been hard seltzers.  Consumer tastes and preferences are constantly changing which is something that retailers have to pay close attention to. Consumers today are literal tastemakers, and that is reflected in this seltzer trend given that Bud Light has hopped on the train to sell these tasty malt beverages, offering peach-mango and black cherry-lime flavors. 

Personally, I have seen a drastic shift in my peers drinking preferences in the last year or so. I have observed a consistency in hard seltzers at parties and bars. The seltzers are an easy, fun, unique and tasty option to choose from. Seltzers are specifically attractive to women who are looking for a low-calorie drink. Picking up on such a trend has led many retailers to be successful in the launching of their new seltzer products. 

https://www.thrillist.com/news/nation/natural-light-hard-seltzer-where-to-buy-natty-light

Kahn Matrix:

In class, we spent a great deal of time discussing and applying the Kahn Retail Success Matrix. Although there are many different retailers who have launched seltzer, I believe Bud Light has a good placement on the Kahn Retail Success Matrix. I would place Bud Light as leading on Low Price, since their seltzers sell for 20% lower than other brands. I would place them second on frictionless because these cans are easy to transport and offer 12 oz cans in addition to 25 oz. tall cans. Other brands don’t offer 25 oz. cans.