Week 10 Reflection

This week began the final push to the end of my last semester of freshman year. It really has gone by quick...

This week's classes were impressive due to the depth of in-class discussion from two Shark Tank clips. These clips focused on the companies "Balm Chicky Balm Balm" and "Fresh Patch." Principally, the companies focused on a "friend end" for a dual-sided chap stick tube and a "boxed patch of grass" for dogs to pee on, respectively. BCBB suffered from their cross-image between a 70's pin-up branding label, and wanting to attract the youth demographic of chap stick buyers. The sharks were definitely not fond of the way the ladies were so open to changing everything their company stood for, in order to please the sharks. Interestingly, a quick glimpse of the company's website shows that they have indeed ditched their semi-risque packaging instead opting for a plain label. Additionally, the company now offers discounts on buying the tubes in bulk of three tubes. This makes sense considering they were selling their units for $9 originally. Now, they are selling the tubes for $7 and allow consumers to buy two tubes for $18 which is undoubtedly a smart decision. When buying chap stick, a consumer is more inclined to buy a few tubes for the family, rather than buying one at a time. This is especially true for their product because it is more of a novelty item that serves as a conversation starter, with its interesting dual-end, sharing design.

The second clip we watched was about a company called "Fresh Patch." Rather than the skimming price strategy that BCBB used, this company used a subscription-based pricing strategy in order to attract consumers. For $25 for a bi-weekly subscription, the company will ship a patch of hydroponically grown grass to your doorstep. This enables an apartment-bound pooch to experience using the bathroom like they naturally do, in the wild. This takes strain off of the dog owner by not making them feel as guilty for not having a backyard and for not having to walk their dogs in inclement weather. By using real grass, the patch absorbs all odors and is also fully disposable. This product is a fascinatingly simple, yet effective concept that has unlimited potential. With already $1 million plus in sales, largely from a west-coast exclusive, online only market, the company's upside is tremendous. Barbara and Mark will bring "Fresh Patch" to the retail sector, as well as fully utilizing Barbara's numerous connections within New York City, due to her being a real estate mogul. This leads me to believe that the company has only reached the tip-of-the-iceberg as far as sales are concerned. By opening up their proposed East Coast distribution center, sales will increase significantly by reaching cities like NYC, Boston, and Philadelphia. The company should subsequently go for a "zone pricing" approach in which a regional flat-rate shipping price is offered. Discrepancies in current West Coast versus East Coast pricing has severely cut into the company's profit margins. With zonal pricing, the company could even experiment with raising subscription pricing in more wealthy areas of cities, such as for subscribers that live on the Upper East Side of Manhattan. These subscribers would be indifferent to a raise in subscription price because $25 is an insignificant sum of money, especially in comparison to the cost of owning a dog in the city and their extravagant rent cost. This pricing method would be better implemented further into the company's lifespan, but it is surely something to think about in order to increase profit significantly.

Have a good week. Til next time...

-Chris

Week 9 Reflection

I am now two classes away from Spring Break and escaping this weather...

This week's reflection is starting off a bit differently than usual... Maybe it's because I'm excited for Spring Break or maybe it's because I'm overtired (or a combination of both). "The One and Only Fanny Pack, For Your Rack" will lead us into our discussion this week. This company slogan belongs to a company called "Boobypack" that we discussed in class today, so there is a method to my madness. This recent Shark Tank deal success story was a hot topic in class today on Thursday. Back tracking to Tuesday, we discussed Chapter 15 which involved advertising. Before this class, advertising was the first thing that came to my mind when I thought of marketing. From the chapter, I thought the most interesting part was the topic of earned media, which in principle, is free. In the social media driven society we live in, a company that can effectively utilize social media to gain and retain new and old customers is crucial for long-term success. 

This chapter tied in with our video clip from Thursday for the company "Boobypack." This company developed a Coachella-tailored bra that allows a female to put their phone, keys, or other small items in two zipper pouches located at the side of the bra. This concept seems to be popular given the success of another Shark Tank success story, "Phonepurse." The reason I included Boobypack's slogan in the previous paragraph was because we were asked to develop a slogan for the company in class today. When I went to present our "commercial" for the company, I inadvertently said "Free hands, more fun." The moment I said that, I knew that it had a nice ring to it. Even better was that the phrase was streamlined and to the point, which I thought was complementary to the otherwise quirky and eye-catching company name. Their company slogan is currently right on their webpage, which is how I came across it. In class, we were also asked to come up with a marketing mix for the company. Since the company is in its introduction stage, we suggested a pioneering advertising mix in which heavy online advertising is present. Interestingly enough, according to their website, they have their own company Twitter, Instagram, and Facebook page. This was highlighted by a company wall of fame on their website. In order to get your picture on this part of the website, an Instagram user must use the hashtag "#bbobypack" to appear on the page. This is actually a really interesting concept because it not only generates buzz on social media because more people will post pictures of themselves wearing Boobypacks, but also motivates the consumer to post pictures since they will be featured on the company's website. Also relating this company back to chapters 16 and 17, we classified this product as a "fun" and "lifestyle" product that uniquely provides the consumer with a water-resistant storage space for females to keep their phones in at concerts. When I first saw the product, I immediately thought of Coachella, which is an indie-music festival held in California every year that attracts a ton of media attention. This product would allow the festival-goers with a product that would enable them to be "hands-free" while dancing and walking around. As I browsed the company's website, I chuckled when I came across the "Glowchella" version of the Boobypack which plays off the festival's name and offers a glow-in-the-dark version of the bra. This product and company as a whole are definitely nailing their heavy advertising and increasing their social media visibility, and if they keep it up, large profit margins are on the horizon for a long time to come. Until next time (post Spring Break)..,.

Best,

Chris

Week 8 Reflection

One week until Spring Break...

As visions of warmer weather and sunshine creep into my mind, until I am on break, I will update you on what occurred in the eighth week of my Honors Marketing class.

Tuesday and Thursday's classes were dedicated to one of the most integral parts of any company- the supply chain and its resulting management. Chapters 13 and 14 were discussed, but chapter 14 was the more in-depth chapter regarding supply chain management. Understanding a company's supply chain provides invaluable insight as to where a company can cut costs and on the flip side, bolster areas that need improvement. In the Shark Tank example of Shortstacks, a lack of supply chain knowledge was the company owner's main flaw. However, the notion that she was aware of the issue enabled her to go into boardroom and pitch her product with confidence. With the shark's capital and supply chain expertise, Shortstacks would see an exponential growth in sales and would be nestled on shelves in stores in every area of the country. Interestingly, Mr. Wonderful saw the immediate flaw in the company's supply chain being that the company was still operating out of a 3000 square foot facility. Kevin suggested, or basically demanded, that the company should move into a commercial co-packer kitchen. At first I was not sure of the exact reasoning behind this idea, but once Kevin claimed that this move would cut production costs by 30% for the company the move seemed a must-take opportunity. This simple move would increase already extremely healthy profit margins for the company. At the time of filming, it cost Shortstacks anywhere from around $1 to $1.50 to make their pancake/waffle mix. With this commercialized move, costs would decrease to 70 cents to $1.20. Considering that the gourmet mix is sold at a price-point of $7.99 per unit, the company's margin contribute to the product's potential astronomical success. In combination with increased order fulfillment, a main concern for the company, and its healthier profit margins, Shortstacks has serious potential.

Any company's supply chain is bound to have gaps. It is paramount that the company is cognizant of these gaps in production and efficiency in order to provide a smooth experience from the point of product origin to its eventual consumption. This is accomplished by strengthening the networks and linkages that connect these gaps, or even scrapping parts of the supply chain altogether. Shortstacks forewent its original production facility in favor of a mass-producing one, which drastically altered its supply chain and subsequently made the company more profitable. The intricate framework surrounding the supply chain must be responsive to changes in the real-world including new product launches. It is this flexibility that drives the equilibrium state that occurs when supply equals the demand of a product, which adversely helps a company keep a healthy inventory control. The supply chain is definitely one of the most intense parts of a company, but mastering its concepts has limitless advantages.

Until next week (last week before Spring Break!)...

-Chris