Wednesday, August 28, 2013

Week 8 EOC | Subliminal Advertising


Today, we live in a society that is overloaded with hundreds of brands. When a brand is able to reach out to the consumer, that is when the brand is very successful. Throughout the decade, brands have been using clever subliminal advertising to influence the consumer. For the most part, subliminal advertising is considered illegal because it plays with the person’s subconscious; however, in a very cautious way, brands will still use some form of subliminal advertising because it makes the brand memorable and relatable. Brands take advertising very seriously and they would spend a lot of time, effort, and resources to research subliminal advertising. For example, in the short article, “The return of the hidden persuaders,” Shell Oil did some research to find out why people choose certain gas stations over others to purchase their gas. With their research they found out that people prefer the gas stations where their fathers used to buy gas and “the company is now moving forward with a ‘multifaceted campaign’ aimed at conditioning youngsters to be loyal enthusiasts of Shell products” (Shalt). However, there has been a lot of controversy of whether subliminal advertising is ethically okay. Experts and advertisers are split. “In fashionable marketing circles, it has become acceptable again to speak openly about harnessing consumers’ brain waves for commercial ends. These days, the marketing history of the 1950s is being relived as farce, as corporations fall over themselves to spelunk the minds of shoppers, and a new generation of depth men seizes on the subconscious as prime territory for subliminal appeals” (Shalt). Personally, I find most subliminal advertising very clever and fun. The people who deal with this type of advertising have to work really hard at including a message that relates to everyone. No matter what happens, people will connect to brands based on how that brand is perceived by the individual person. Virginia Valentine, president of Semiotic Solutions, quotes “My belief is that, as our personalities get more fragmented, products and brands can work with us,” she says earnestly. “We are not at all about creating needs that people don’t have. We are about meeting wants that people do have. If we can understand the way people want to live their lives — the way they want to see themselves — and then put brands to work in the service of that, I think that’s a beautiful thing, actually.” Subliminal advertising is a powerful and effective tool when it comes to branding. I don’t necessarily see it as a terrible thing, unless it brainwashes people to do horrible things and I believe that is the only real threat when it comes to subliminal advertising. Like anything, there just needs to be some type of regulation.



Sources:
1. "The return of hidden persuaders" article by Ruth Shalt

Wednesday, August 21, 2013

Week 7 EOC | Retail PEST



 Zara has become the largest fashion retailer in the world. They have gained popularity through their rapid method of bringing new styles and products to their stores, providing a larger selection to their customers. Here is the Zara PEST analysis:
POLITCIAL
·      Zara has a very good environmental policy. They take a lot of actions to be eco-friendly. They save energy in their retail stores and their design shops by using their lighting, heating and cooling systems smartly. They also try to recycle their furniture and decoration. On the producing side, they produce less waste and recycle. Also, they use ecological fabrics and organic cotton.
·      They charge sales tax on their products, if applicable.
·      Zara’s competition includes stores like Topshop, H&M, and Forever21. These stores sell fast-fashion at reasonable prices. Although these stores are similar, they have different styles and methods of operating. Zara is the largest, but it is growing at a healthy rate.
·      The company has been under scrutiny for ignoring consumer rights: “The company ignored the supervision by public opinion and never responded to the opinion of the consumers' association and consumers” (http://english.people.com.cn/90001/90778/90860/7361058.html).
ECONOMIC
·      They have gotten better at pushing out product from their stores, so they have gained a lot of economical growth.
·      Zara is an international retailer that originated in Spain, so they are good at handling exchange rates.
·      Because Zara can push new product rapidly, their consumer spending has increased: “Zara introduce new items every week, which keeps customers coming back again and again to check out the latest styles” (Tiplady).
SOCIAL DEMOGRAPHICS
·      Zara consumers go to Zara regularly for their fashion needs: “Zara's customers visit its shops an average of 17 times a year” (Ferdows). They carry clothing for women, men, and children. Their consumers are people whom like the style of high-end clothing, but they don’t want to pay the high-end price.
·      Zara designers are constantly working to fill demand and provide new styles for their stores
·      The company doesn’t focus on advertising. Other than their product (the clothes), they focus on the style and architecture of their stores to look very appealing and chic to customers.
TECHNOLOGICAL
·      The Zara designers are always doing their research to see that are the next fashion trends that are coming off the runways. A lot of time and effort goes into their mission. Also, they like to remain anonymous because they are considered “copiers” and not “designers”.
·      Recently, Zara has updated their inventory system to make everything run easier. Before they use to do everything by hand, when it came to markdowns and such. Now, they use technology and everything is easier and more efficient. As a result, they sell more.



 Sources:
  1. http://hbswk.hbs.edu/archive/4652.html
  2. http://www.businessweek.com/stories/2006-04-04/zara-taking-the-lead-in-fast-fashionbusinessweek-business-news-stock-market-and-financial-advice
  3. http://www.triplepundit.com/2006/08/zara-inditex-and-amancio-ortega-%E2%80%93-the-responsibility-of-international-success/
  4. https://www.ibm.com/developerworks/community/blogs/jfp/entry/zara?lang=en 
  5. http://www.zara.com/us/en/company/our-mission-statement-c18001.html