Tag Archives: business model

A New Focus for P&G

19 Aug

Procter & Gamble, the long-time world leader in consumer products and the leading global advertiser, is ready to embark on another new strategy. It has tried many tactics in recent years to try to stimulate company growth and profits.

P&G’s latest approach may seem counter-intuitive — to grow by shrinking its brand portfolio. However, this idea does seem on target and reflects the essence of the Pareto 80/20 Principle that relatively few products account for a disproportionate amount of sales and profits.

As reported by Rachel Abrams for the New York Times:

“After years of expansion into areas like pet food and beauty products, Procter & Gamble announced that it would cut as many as 100 brands from its arsenal to focus on others, like Tide, that made the company a powerhouse over the decades. The move is part of a strategy to improve the company’s financial performance by doubling down on about 80 brands that generate 95 percent of the profits and 90 percent of sales, according to A. G. Lafley, the firm’s chief executive. The company, and the industry at large, have faced pressure as consumers continue to spend less than they did before the financial crisis.”

[According to Lafley,] “‘This new streamlined P&G should continue to grow faster and more sustainably, and reliably create more value. Importantly, this will be a much simpler, much less complex company of leading brands that’s easier to manage and operate.'”

Click the image to read more of Abrams’ story.

 

Photo by Mario Anzuoni/Reuters

 

Amazon Versus Hachette, Amazon Versus Disney, Etc.

18 Aug

As the world’s largest book seller and online retailer, Amazon is never afraid to flex its muscles with regard to suppliers. So, these questions come into play: Is Amazon acting as an advocate for lower consumer prices (as the retailer claims)? OR is Amazon an unrestrained bully trying to increase its margins at the expense of its content providers (as critics claim)? WHAT IS YOUR CONCLUSION?

For several months, Amazon has been  battling with publisher Hachette. Consider this observation in Catey Hill’s report for MarketWatch:

“Amazon and book behemoth Hachette — along with some publishers’ groups and writers — are at one another’s throats, in a fight that’s escalated just within the past week. Amazon, which accounts for about 60% of the digital-book market, wants to use its market power to get Hachette to lower E-book prices, while Hachette says that this is ‘punitive,’ hurts authors and bookstores, and doesn’t take into account the costs — like royalties, marketing and expenses — that go into creating books. Hachette also notes that 80% of its books are already selling online for $9.99 or less, which is the price at which Amazon hopes to sell many of its E-books. For its part, Amazon has used its leverage against Hachette by delaying shipping and stopping pre-orders on some Hachette books.”

Now, Amazon has also decided to do battle with the Walt Disney Co., another behemoth content provider. Consider this observation in Greg Bensinger’s report for the Wall Street Journal:

“When Amazon.com Inc. wants to fight, it turns to a familiar playbook. The latest to feel the Seattle retailer’s sting is Walt Disney Co. Amazon isn’t accepting pre-orders of forthcoming Disney DVD and Blu-ray titles including Captain America: The Winter Soldier and Maleficent. As Amazon continues its well-publicized battle with Hachette over E-book costs, it has now engaged in a battle with Disney. It is the same tactic Amazon has employed in a bitter four-month spat with Hachette Book Group over E-book pricing. To press its point, Amazon suspended pre-orders for physical copies of many Hachette titles and lengthened shipping times or pared discounts for others. The tactics underscore Amazon’s unusual sway in E-commerce, where it is by far the dominant player, particularly for books and media.”

Click the image to see a Wall Street Journal video on this battle.

Photo by Associated Press

 

An Interview with Fashion Legend Diane Von Furstenberg

17 Jul

Diane Von Furstenberg has been a prominent, trend-setting fashion designer for decades. Take a look at the Web site of her company to see what she’s doing now.

Here’s a brief bio of Von Furstenberg by Liz Welch of Inc.:

“Designer Diane von Furstenberg was 27 when she made the first wrap dress in 1974. The iconic design landed her on the cover of Newsweek — and millions of women snapped up her dresses. But when demand faded, von Furstenberg ended up selling most of her licenses to avoid bankruptcy. In 1997, von Furstenberg relaunched her company, which now has annual sales of more than $200 million. The wrap dress, too, made a comeback, and recently celebrated its 40th anniversary with ‘The Journey of the Dress’ exhibition, which traveled the globe. And, as the 68-year-old designer recently shared with Inc. contributing editor Liz Welch, she is focused on building a company to outlast any fad.”

Click Von Furstenberg’s photo to read her recent interview with Liz Welch for Inc.
 

 

Resources for Women and Minority Business Owners

16 Jul

Although these observations by the National Women’s Business Council refer specifically to female business owners, they are equally applicable to minority business owners:

“Like all entrepreneurs, women business owners face many challenges in making their entrepreneurship dreams a reality.  Some of the challenges faced by women may be specific to women, due to the historical and cultural context within which they do their work.  Women have the challenge of confronting and overcoming the historical barriers of being kept out of business and capital markets until the late 1980s.  Even today, women’s access to information (or lack thereof) about financing strategies and opportunities may be limited due to a lack of access to the social networks where many key decision makers and capital players make deals.  A lack of information about financing a business may result in more women raising lower levels of capital or pursuing only debt financing, which can limit their growth potential. ”

Click the image to read more from the NWBC.
 

 
With the above in mind, Tom Shaw (a Visible Systems Specialist for Magnatag) has published an excellent series of links to resources for women and minority business owners. Shaw provides links to 45 resources!! Click here to access Shaw’s “Women and Minority-Owned Business Resources.”
 

Companies That Have Changed the World

9 Jul

Many companies have had a major impact on business practices and our lives. And a lot of these companies have endured for a century or more.

Recently, Fortune published a list of 27 companies that have changed the world over the last century-plus.

Sorry, Apple fans — but Apple ranks only 16th on the list!

Click the image to see the full list. :-)
 

 

Big Data and Better Pricing Decisions

18 Jun

As we have written before (see for example, 1, 2, 3), more and more marketers have become involved in big data analysis.

Now, comes new research from McKinsey about how the analysis of big data can be used to improve a company’s pricing decisions.

McKinsey’s Walter Baker, Dieter Kiewell, and Georg Winkler note that:

“It’s hard to overstate the importance of getting pricing right. On average, a 1 percent price increase translates into an 8.7 percent increase in operating profits (assuming no loss of volume, of course). Yet, we estimate that up to 30 percent of the thousands of pricing decisions companies make every year fail to deliver the best price. That’s a lot of lost revenue. And it’s particularly troubling considering that the flood of data now available provide companies with an opportunity to make significantly better pricing decisions. For those able to bring order to big data’s complexity, the value is substantial.”

“We’re not suggesting it’s easy: the number of customer touchpoints keeps exploding as digitization fuels growing multichannel complexity. Yet, price points need to keep pace. Without uncovering and acting on the opportunities big data present, many companies are leaving millions of dollars of profit on the table. The secret to increasing profit margins is to harness big data to find the best price at the product — not category — level, rather than drown in the numbers flood.”

Click the image to read a lot more.
 

 

 

TV Everywhere Is Booming

16 Jun

As we have noted before, television viewing behavior is quickly evolving (yes, that’s an oxymoron, :-) ). Now, the “TV Everywhere” phenomenon means that fewer of us our tied to the TV cord.

According to eMarketer:

“Consumers want access to anything, anytime, anywhere — including television. One solution? TV Everywhere — services that enable cable and network customers to watch TV content on any Internet-connected device by authenticating their subscriptions. Based on Q1 2014 data from Adobe Digital Index, such services may be working. The number of unique TV Everywhere visitors in the US rose 157% between Q1 2013 and Q1 2014 and 49% between Q4 2013 and Q1 2014.”

Research by Viacom found that the number one advantage of TV Everywhere for viewers is the flexibility that this technology allows them.

Click the image to read more.

 

 

Consumers want access to anything, anytime, anywhere—including television. One solution? TV Everywhere—services that enable cable and network customers to watch TV content on any internet-connected device by authenticating their subscriptions. Based on Q1 2014 data from Adobe Digital Index, such services may be working. According to the research, the number of unique TV Everywhere visitors in the US rose 157% between Q1 2013 and Q1 2014 and 49% between Q4 2013 and Q1 2014

Research by Viacom found that the number one advantage of TV Everywhere for viewers is the flexibility that this technology allows them.

Click the image to read more.

 

 

Flexibility is the main reason today’s busy, on-the-go consumers are taking advantage of TV Everywhere. – See more at: http://www.emarketer.com/Article/TV-Everywhere-Visitors-Jump-157-Year-over-Year/1010924/1#sthash.mPmHQu27.dpuf
Consumers want access to anything, anytime, anywhere—including television. One solution? TV Everywhere—services that enable cable and network customers to watch TV content on any internet-connected device by authenticating their subscriptions. Based on Q1 2014 data from Adobe Digital Index, such services may be working. – See more at: http://www.emarketer.com/Article/TV-Everywhere-Visitors-Jump-157-Year-over-Year/1010924/1#sthash.mPmHQu27.dpuf
Consumers want access to anything, anytime, anywhere—including television. One solution? TV Everywhere—services that enable cable and network customers to watch TV content on any internet-connected device by authenticating their subscriptions. Based on Q1 2014 data from Adobe Digital Index, such services may be working. – See more at: http://www.emarketer.com/Article/TV-Everywhere-Visitors-Jump-157-Year-over-Year/1010924/1#sthash.lyjGbxQp.dpuf

Consumers want access to anything, anytime, anywhere—including television. One solution? TV Everywhere—services that enable cable and network customers to watch TV content on any internet-connected device by authenticating their subscriptions. Based on Q1 2014 data from Adobe Digital Index, such services may be working.

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According to the research, the number of unique TV Everywhere visitors in the US rose 157% between Q1 2013 and Q1 2014 and 49% between Q4 2013 and Q1 2014

- See more at: http://www.emarketer.com/Article/TV-Everywhere-Visitors-Jump-157-Year-over-Year/1010924/1#sthash.lyjGbxQp.dpuf

Consumers want access to anything, anytime, anywhere—including television. One solution? TV Everywhere—services that enable cable and network customers to watch TV content on any internet-connected device by authenticating their subscriptions. Based on Q1 2014 data from Adobe Digital Index, such services may be working.

SHARE

According to the research, the number of unique TV Everywhere visitors in the US rose 157% between Q1 2013 and Q1 2014 and 49% between Q4 2013 and Q1 2014

- See more at: http://www.emarketer.com/Article/TV-Everywhere-Visitors-Jump-157-Year-over-Year/1010924/1#sthash.lyjGbxQp.dpuf

Consumers want access to anything, anytime, anywhere—including television. One solution? TV Everywhere—services that enable cable and network customers to watch TV content on any internet-connected device by authenticating their subscriptions. Based on Q1 2014 data from Adobe Digital Index, such services may be working.

SHARE

According to the research, the number of unique TV Everywhere visitors in the US rose 157% between Q1 2013 and Q1 2014 and 49% between Q4 2013 and Q1 2014

- See more at: http://www.emarketer.com/Article/TV-Everywhere-Visitors-Jump-157-Year-over-Year/1010924/1#sthash.lyjGbxQp.dpuf

Consumers want access to anything, anytime, anywhere—including television. One solution? TV Everywhere—services that enable cable and network customers to watch TV content on any internet-connected device by authenticating their subscriptions. Based on Q1 2014 data from Adobe Digital Index, such services may be working.

SHARE

According to the research, the number of unique TV Everywhere visitors in the US rose 157% between Q1 2013 and Q1 2014 and 49% between Q4 2013 and Q1 2014

- See more at: http://www.emarketer.com/Article/TV-Everywhere-Visitors-Jump-157-Year-over-Year/1010924/1#sthash.lyjGbxQp.dpuf

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