HEB Grocery to Sell Whataburger Products

ALERT! ALERT!

Coming Summer 2013 to an HEB near you! A new product line will hit the market. It already has a loyal fan base, with people counting down the days until its launch. Up until this point, these products have been offered free to consumers. Now people cannot wait to pay money to place this product in their pantry.

What is this product, you ask?

A line of KETCHUPS and MUSTARD for Whataburger.

Yes, that's right -- condiments from Whataburger! The online community can't seem to get enough of the news, announced yesterday by both of the San Antonio, Texas based companies. Regional grocery store chain, HEB, will begin to sell the line of condiments and Whatafries, a potato-chip version of the Whataburger french fry to customers this summer.

I know there are others who are far more excited about this news than I. Don't get me wrong, I am thrilled and will definitely be buying some of all 3 condiments (Fancy Ketchup, Spicy Ketchup, and Original Mustard). I am just not one of the incredible diehard Whataburger loyalists who think this fast-food joint makes the best burgers known to man (coughIN&OUTBURGERcough).

This partnership makes so much strategic sense. Both companies have diehard loyalists. Both companies are based in San Antonio. Both primarily only operate in Texas. HEB is known for promoting local brands and products. Whataburger is known for accommodating their customers' wishes by bringing back popular seasonal items. I could go on and on.

It is my belief that both companies will benefit from this partnership. HEB will continue to build a relationship with their shoppers by showing how they understand their customer and find innovative ways to fill their needs. Whataburger will continue to foster brand loyalty within their regional market and potentially gain awareness in new markets. In addition, Whataburger could be one of the first successful entrants in the fast-food to grocery crossover business. Of course, it helps that Whataburger has developed a differential product in its spicy ketchup, but that aside, other businesses might try to piggy-back off Whataburger's success. Time will tell.

Regardless, I am thrilled for this unique partnership. I eagerly await the summer launch! Count me in for some fries and ketchup come summertime!

Social Media & The American Spirit

This past week has been hell for a lot of people. Lives altered. Innocence lost. 2 cities broken and changed forever. As the people of West, TX and Boston, Mass. pick up the pieces and try to make sense of the catastrophes to hit their communities, I have been making note of the ways in which our country has evolved into a more caring, unified, compassionate, genuinely GOOD society since our innocence was shattered on September 11, 2001.

I have never been more proud of our great United States as I have been this past week. Our sense of community, the "your brother is my brother" mentality, the outpouring of generosity from complete and total strangers to the victims of these two horrific events has been nothing short of extraordinary. To me, this is the purest symbolism representing everything that is wonderful about America. Sure, we have a cut-throat, dog-eat-dog mentality in business, and sure we have probably more than our fair share of violence, but holy crackers -- when someone impedes on our ability to join in celebration with people who are accomplishing one of the biggest milestones in their life, an event where there is so much joy and triumph over struggle, we as a nation really shine.

Social media is a wonderful tool to help develop a sense of community with those who are hundreds or thousands of miles apart. Through the internet and social media platforms, I was able to check on a family friend who was running the marathon, able to connect with a friend who lived in West (who as it turned out, lost everything but their lives), able to participate in the relief efforts for West, able to donate to The One Fund Boston, and most impactful of all, be in mourning with everyone else across the country. It is paramount that in times of grief and sorrow people have a sense of community around them to help them cope through things that just do not and probably will never make sense.

I was riveted for an entire week, glued to anything with a screen hoping for positive news developments in both disasters. On Thursday, when video was released of the suspects, it spread like a wildfire over cracking ground. Within a few hours, hundreds of millions of people across the nation suddenly had a watchful eye out for 2 very dangerous men. When the dramatic events started to unfold on the campus of MIT later that night, social media once again proved critical. Suddenly people were streaming police scanners over Ustream (which is by the way something that I don't agree with, but I won't get on my soapbox right now. We would be here a while), live blogging the events from their homes just mere feet away from the activity,  and tweeting/retweeting any nugget of information to keep their neighbors, whether literally or figuratively, safe from harm.

Social media is a powerful tool. People complain about privacy and about raising an overly-egotistical generation. What is so often overlooked is the good that social media can create. I currently reside in College Station and am a current and former student of Texas A&M University. Aggieland Outfitters, an A&M spirit store, led a joint effort of local businesses and student organizations to collect a donation of items to send to West, TX. The alert was sent out a few short hours after the explosion online, via texts, and through local news outlets. The following morning, the organizations began taking donations from local students and residents. Here is a link to an Aggie's experience being a part of the traveling caravan from College Station to West on Thursday evening (24 hours after the explosion). Below is an excerpt of his testimony. It is one of the many reasons that no terrorist, no hateful organization, and no amount of fear will ever shake my faith in humanity.

"In a joint effort orchestrated by over 15 local businesses with Aggieland Outfitters as the lead, 3 student organizations, 200 plus aggie volunteers, and countless generous donators, we delivered approximately 226,500 pounds (Over 113 Tons-equal to the weight of Boeing 757) of supplies in two 53’ Semi-trailers, two 35’ Trailers, three 15’ moving vans, one RV, one moving trailer, and convoy of personal vehicles. We also delivered over $15,000 in cash donations to the town leaders. You want to know the most amazing part? We had delivered all this within 24 hours of the accident. There is no other way to classify this extraordinary effort other than to just say “There’s a spirit can ne’er be told.” -Cameron Salome ‘07

I pray that this world becomes more peaceful and that terrorists seek to exist. Will that be reality? --Probably not. But I feel safe and content knowing one simple thing: The generosity and support in response to events such as Boston and West show why we will always win in the end.

Dove: Real Beauty Sketches

The "Real Beauty" campaign that the company launched in the early 2000's was a truly groundbreaking piece of marketing. Never before had such a global company made such a bold statement regarding body image, beauty, the trend towards "magazine beauty," and the damage that these negative thoughts are having on the female mind today. Full-figured women were shown in their underwear, smiling and confident in their skin. Other women were shown on billboards across the country with a simple question. Is she "oversized" or "outstanding?" The ad was even somewhat interactive (which was rare back then). Passersby could vote by calling a phone number dove had provided. The entire campaign was a smashing success and has won almost every award given in advertising today.

Welp. Dove is at it again, y'all. Here is the new Dove ad - Real Beauty Sketches - shown below. If you haven't seen it, I highly, HIGHLY recommend it. Go. Watch it below, and then we can analyze it together.

Insane right? Insane in how genius that marketing is. Insane in how true that experience is with women describing their beauty. Just... insanely awesome basically.

Here lies the true genius behind Dove's marketing:
Dove has been able to position themselves as the company that genuinely cares for you as a person. Sure, they make products that they want you to buy. The products are supposed to make you look prettier, and that's great. But what Dove has been able to achieve with the consumer is enormously more profitable than buying a bottle or two of lotion every couple of months. Dove has earned the customer's trust. Women trust Dove with their most precious assets -- their confidence and self-worth. Through ads like the one shown above, women are beginning to feel more empowered, stronger emotionally, and more confident expressing the fact that we are all uniquely beautiful. We are not  "magazine beautiful" nor should we strive to be. Magazine beauty only happens in a magazine. I mean,  have you seen Kim Kardashian without makeup? Doesn't look the same! And that's just it. Its not the same. Its not reality. Dove has managed to release non-traditional advertising and have it be incredibly successful. I understand that a good chunk of the reason that this advertising methods can be so successful is because it is so unique in marketing today. Not many other companies are advertising with heavier women (although it is beginning to not be as taboo to do so), so Dove has been able to maintain a first-mover advantage in that respect.

Do I think that other companies will start to market with fuller-figured women to play off of Dove's success? Yes. Do I think that it will become a new norm? I do not. I think that as a society, marketing with thin, photoshopped women is something that will not change, at least in my lifetime. I can only hope that more companies start marketing towards our self-esteem and self-worth.

Be the change you wish to see in the world.
-Ghandi

Internet Diary Ep.1

I receive daily emails from both Groupon and Livingsocial that always flood my inbox with mostly meaningless offers for cheap deals I would never need nor want. However, I have yet to unsubscribe from these annoying e-blasts because occasionally, I find something that I actually buy. Recently, I found one such offer on Groupon. I found an iPad case that came from a reputable brand in a variety of colors for $7.99. That's a steal!! I bought the case, received it in the mail a couple of weeks later, and thus far have been completely satisfied with my purchase.

My purchase experience really got me thinking about these discount sites and their subsequent marketing strategy. My concerns with these discount sites are two-fold.

1. Increasingly often, I find deals promoted on these websites from companies whom, after further investigation, seem very sketchy to say the least. The company's website looks like it was built in the middle 1990s.... The price is too dirt cheap.... The reviews for the company are horrendous... The list could go on and on. I wonder how the discount retailer's (Groupon, Livingsocial) brand perception will change in the future if they continue promoting less than average businesses.
2. I understand that their whole concept is based around a daily changing buffet of offers, some better than others. I understand that these businesses feel the need to communicate these new offers to their subscribers.... But the overwhelming amount of emails that subscribers of these sites are subject to is ridiculous! On more than one occasion, I have been so fed up with these relentless emails, that I have seriously considered hitting the "unsubscribe" button at the bottom of those emails. These companies need to learn to balance their emails to customers. An annoyed customer is not a profitable one.

Groupon has been in some financial trouble lately. The stock price has taken a big hit from the high mountain on which it once was on. In 2010,  Google was attempting to purchase Groupon, but Groupon refused the deal then. I wonder who is laughing now?

Mountain Man Brewing Co.

In 2006, Mountain Man Brewing Company, a family owned brewing company in West Virginia, was struggling to grow its business while staying true to its brand identity. Mountain Man was viewed as the tough man's beer. It had a very strong brand presence in its local/regional market, even being known as  "West Virginia's Beer." A typical Mountain Man customer was an older, rough, gritty, man's man, coal miner of a guy. He appreciated that his beer, the one he always drank, fit his personality and lifestyle.

With the younger son of the founder taking over MMBC from his father, he brought new ideas for how to grow the family business.

New Idea-- Introduce a new version of their signature beer, Mountain Man Light.

Pros

• gain share in on-premise locations where there are higher numbers of younger & female drinkers (not typically MM's strong customer segment)
• opportunity to attract the youthful & female segment with the "light" product description
• light beer (as a segment) is experiencing growth
• build on strength of brand & domestic packaging
• start building the MMBC brand loyalty at a much younger age (most beginning drinkers prefer lighter beers and then transition to darker beers over time)

Cons

• risk dilution of the brand
• risk alienating your current loyal customer base with the introduction of something that could be deemed threatening to their brand identification
• potential cannibalization (5%-20%) of light beer sales could come at the expense of the sales of their key lager
• expenses, start up costs, production costs
• risk of successfully acquiring the younger customer base and their willingness to accept the new MM image
• younger drinkers typically go for mass market brands

Overall, I think that there is more benefit to introducing the light beer vs not changing anything about the company at all. Companies must adapt and change with the times or they risk fading into oblivion. Not all products can stand the test of time. Although the West Virginia market is strong in its MMBC loyalty, the company can work on expanding its footprint outside the coal mining towns of the Appalachian Mountains by introducing a newer, lighter brew to the market.

The Google Store

I read this interesting article on Mashable today that really got me thinking about a company that we all interact with multiple times a day. Google. (In fact, I realized now that I actually used Google to google information about Google. It is now so big, its a noun AND a verb. Crazy.)

The Big News: Google is planning on opening several retail brick and mortar stores later this year.
*shocked face*

First impression--- "Wow, Google. Do you have to copy everything that Apple does? Are you always this late to the party? Get some new unique ideas." (I pre-warned you of my Apple loyalty in a previous post)

Impression after thinking logically and using the marketing side of my brain--- "With the recent launch of the Google Chromebook and the upcoming release of Google Glass, launching a chain of retail stores in which the customer can physically interact and experience the product for themselves actually sounds like a pretty logical, smart move."

Why did Apple launch its own line of stores? Many reasons I'm sure can be thought of, but the list definitely includes having complete control of the product from production to final sale, enhancing customer understanding of the product features/benefits, and creating an unique experience for customers that increases brand loyalty. I think for many of the same reasons, Google is now interested in launching a line of stores of their own.

Google is no longer just a search engine. With its recent acquisitions of YouTube, Blogger, Picasa, and Android, Google is building a company based on much more than simply search. Google is building an entire web experience for consumers. They own their own OS, are launching their own tech gadgets, and have money to spend. Why wouldn't they open a store of their own?

While the features and functionality of the Chromebook are not drastically different than a regular laptop, keeping the learning curve rather minimal, the same will not be true of the the yet-to-be-released Google Glass. Google Glass will require significant customer-to-associate interaction in showing the consumer the features of the new product and how to properly wear and operate the glasses. As you can see from the video below, there are a lot of interesting features rumored to be in these glasses. (Granted, this video was uploaded by Google almost a year ago as a mock-up of what Glass could be like. Who knows if features like these will actually be a part of the product. Sure would be sick though!)



I will be interested to see what more comes of this potential Google store news in the coming months. For Google to branch out of the virtual world and enter the tangible one will be a bold move. I'm not sure how well two main products (Glass and Chromebook) can support a chain of retail stores, but I suppose Google could sell products that they are affiliated with as well such as cell phones and tablets, assuming they get the proper permissions from the manufacturers. If Google can strike those selling agreements, I think Google will be launching itself into an entirely new and financially profitable chapter of its story.

Brand Obsession: Apple

For anyone that knows me, they know that I am a serious Apple junkie. I own about every major Apple product that is produced. Some say that Apple lovers form a cult (just like some misinformed people call being an Aggie the same as being brainwashed by a cult-- but I digress). I say that Apple is more efficient, innovative, simple, and sexy than Microsoft. Yes, Apple is sexy. It's hot. It's the company every is talking about, because you either love it or you hate it, and you can't wait to tell others which camp you reside in.

Recently as a part of my Marketing Strategy class, I had to look strategically at Apple, Inc; the entire corporation from smartphones to music to applications to computers. With the passing of Steve Jobs, the genius who made Apple into the mecca it is today, a new CEO takes over brining new opinions, new styles of management, and new ideas on how best to move forward as a company. A lot has been made of Tim Cook, especially in comparison to Steve Jobs (which personally, I don't think is anywhere near being fair, but its a natural tendency). But what about just as Tim Cook, CEO of Apple, Inc? No before or after, just the present. What can he do to continue Apple's rapid growth?

Several ideas were presented in our class discussion of things that Tim Cook should focus on in his tenure at the top of Apple. IP protection, market share, technology advancements, and international marketing were all topics brought forward as potential areas in need of improvement by Mr. Cook. I will go into the two that I agree with the strongest.

Focus #1: IP Protection

In the HBR article that our class read for this discussion, it mentioned that Tim Cook has stated that he won't be as aggressive as Jobs was in pursuing IP infringements. In my opinion, that is a huge mistake. Now, I understand that Jobs was actually criticized for how obsessed he was with suing people for every last dollar they were worth if they messed with Apple IP. I'm not saying I completely condone that approach either. What I will say is that what Jobs did in protecting Apple's creative concepts and ideas obviously worked and garnered the company a huge amount of competitive advantage in several different areas of the technology market. Technological advantage over its competitors is one of Apple's main lifebloods of its organization. Without strong IP protection, Apple's high price point can easily be undercut by competing manufacturers willing to sell for a lower cost and take a lower profit margin.

I suppose I'm more concerned regarding his comments on IP simply because of the fear of the unknown. I suppose this particular focus is just a more "wait and see"just how laisse-faire Cook actually plans on being regarding IP protection. I'll be very interested to see the developments in the next few years and how things change (or don't change).

Focus #2: Technology Advancements

One thing that does worry me a bit as a loyal consumer of Apple products is how many Windows based Android devices are coming out with features that are cooler and more innovative than Apple offers. One of the main successes of Apple has been its flawless iOS system for all of its mobile devices. The iOS is tightly controlled by Apple and offers little room for personalization when compared to a Windows or Android device (unless of course, you were to jailbreak your Apple product).

For a long while, Apple was on top of the heap when it came to cutting-edge technology, but with the recent surge of the Anrdroid platform, Apple no longer can simply rest on their laurels sitting comfortably ahead of the pack in the smartphone/tablet marketplace. With Steve Jobs, you always felt there was a constant presence of innovation at the company and that the next big thing was right around the corner. With Tim Cook in charge, I don't really know what to think yet. Is he capable of creating the level of innovation that Apple has become known for? Is his team of designers up the challenge to take over the bulk of the design role, a role that up until the day of his passing was heavily influenced by Jobs?

One thing is for sure, Apple must find a way to bring their technology back onto par with Windows and the Android OS or else they will lose share in the only product segment within the company in which they still have a distinct and hearty advantage.

Junkie Status

Finally, just as an aside I thought I would prove just how much of an Apple junkie I actually am. I've listed out all the Apple products I own. I am married to iOS and will never be seen buying an android product (mainly because hello, I need my color-coordinated iCal synched wirelessly across all my devices or else I am a lost soul with a schedule).--

• Black MacBook (2006 model) -- planning on selling it... and taking offers ;)
• MacBook Pro (2012 model) 
• iMac 21.5" (2011 model)
• Apple TV (3rd generation)
• iPad 1 32GB ---sold it.
• iPad Retina 32GB white
• iPhone 3GS 16GB white
• iPhone 4S 16GB black

Brand Obsession: IKEA

As many of you know, I am now in graduate school working toward a Master of Science in marketing degree. As a part of furthering my knowledge in the world of marketing and strategy, I am going to start incorporating marketing/business related thoughts, tidbits, and articles into this blog. I think it will help me think critically and better flesh out my thoughts and ideas about what is going on in the business world today.

First up:

Harvard Business Review (HBR) case study: "IKEA Invades America"

-I recently read this case for a marketing strategy course that I'm taking this semester. Written in 2004, it provides a unique snapshot of IKEA during a very important and pivotal time in the company. During this time, IKEA was still fairly new to the United States but looking to grow rapidly if the market accepted the unique IKEA product style.

Here are a few things that I gathered while reading the case:

• IKEA has always been known for their simplistic design of furniture. What I didn't realize before reading the case was that this mindset of simplicity permeates throughout the company, from idea conception through design and all the way to delivery to the end consumer. IKEA has developed a product/price matrix that is used during development of all products. The product must fit into one of four styles: Scandinavian (sleek wood), Modern (minimalist), Country (neo-traditional), and Young Swede (bare bones). Additionally, it needs to be categorized into a low, medium, or high price point. If what IKEA comes up with can't be sold 30-50% lower than the price benchmark in that category amongst IKEA competitors, then in most cases, the product development stops there. It is a very streamlined and efficient way to organize the product development process while making sure that new product additions enhance the overall company portfolio.
• When the case was written in 2004, there was only 1 store in the Asian market. Since then, the number of stores in China and Japan have exploded and the Asian market seems pretty saturated with the number of IKEA stores currently operating. I spoke with a friend, Candace, in class about IKEA in the Asian market as she grew up in China and is very familiar with the culture (Candace is an American, just so we're clear ;). She mentioned that in China, going to IKEA is something fun to do with your friends. It is not the same grand purchasing adventure that Americans have when they travel to an IKEA. Candace said IKEA, while boasting of quality furniture at affordable pricing, is still priced too high for most Chinese to buy from on a regular basis. Sure, people will buy the small household, trinkety items, but the large pieces of furniture are a much harder sell over there. She thinks there is still work to be done in that aspect of better meeting the Chinese market expectations of the brand.

(The map shown above is from 2007, but it's the most recent one that I could find. 

It shows a more updated total of stores in various countries all around the world.)

• When looking at the map for other untapped markets that IKEA could pursue, there was one country that stood out for its dense population, fast product adoption rate, and increased willingness to accept Western-influenced products. INDIA. It's so obvious! Why hasn't IKEA entered the Indian market place yet?! Now I'm sure there are all kinds of red tape and government interference that I know nothing about, but taking all of that aside for a moment and looking at the situation with a purist viewpoint, it seems like a prime market for IKEA. So what do I do when faced with a question that makes no sense to me? I google it. Obviously. And what do you know?! A recent Forbes article that mentions how IKEA just struck a deal to invest $1.9 billion to build 25 stores in India over the next decade or so. The first won't open for another three years but the groundwork has been laid. IKEA will have to tailor its stores to meet Indian government guidelines, such as IKEA won't be allowed to have their signature cafes inside the stores because it violates the FDI policy on food retailing. IKEA has always been fairly rigid it will not change its brand to fit into new markets. If the customers within the new market do not accept the Scandinavian influenced company, design, food, and overall experience, then IKEA views it is not a good market for the company. For IKEA to agree to not include its signature cafes in the new set of stores in India is, I think, a very big move for the company and says a lot about the lengths they are willing to go to get a foothold in the Indian market. Only time will tell how this will all play out for IKEA and what other concessions the company may have to end up making to tailor to the Indian market. This will be interesting to watch over the coming years to see just how true to the brand IKEA remains.
• A last little thought on the subject of potential country expansion for IKEA --Latin America & South America-- Why hasn't IKEA gone there yet? Certain large cities in not unlike Rio de Janiero, Santiago, Buenos Aires, and Lima certainly have a diverse enough population to garner an IKEA following. These cities are just teeming with young people who are modern, minimalists, and who need organization for small living spaces. I believe that the majority of the Latin/Hispanic population has been left out of IKEA's markets (with the exception of Spain and Portugal where IKEA has numerous stores). Is there a reason behind this exclusion? Are there characteristics about the Latin consumer that deter them from IKEA-style products? These are questions that I don't have the knowledge to answer but are worth a look for IKEA if they want to reach a virtually untapped market.

My own personal thoughts on IKEA

I LOVE THIS STORE. Yes, that was in all-caps. I LOVE IT. I mean, I'm a girl and I love shopping, so there's that. But IKEA is so much more than just shopping. It's an interactive, enthralling experience that can't really be compared to any other store in the market today. The ability to visualize each individual room, the ideas that are generated from seeing items placed together that wouldn't ordinarly be, the sleek, modern style that mirrors where I'm at in my life right now, the affordable changeability of patterns, colors, and styles in the furniture industry (an industry primarily known for its product longevity and hefty expense on one's finances). ...I could go on and on. I love this store. Assembling the products is kind of a hassle, I admit (although it helps having a solid man in your life who you ever so lovingly ask for his assistance ;) but the reward from knowing you made those 5 slabs of wood into an desk or bookcase or whatever, that's powerful. Is it lame to say to IKEA empowers people? I believe it does to an extent. IKEA empowers people to think creatively when designing a room. IKEA empowers people to think differently about furniture and what it means to our lives. IKEA empowers people to be their own masters of creation, from picking to loading to assembling. IKEA is a powerful company that has developed a strong group of loyal followers, myself included (obviously!) that has ample room to grow, should the company desire that expansion.

(oh, and here is a little snapshot into one of my most recent IKEA hauls with 

my sister at the IKEA in Frisco, TX. Did I mention I love IKEA?..)

So Much Life, So Little Blogging

For everyone who started following my blog last year when I was in the midst of my DIY/Pinterest bonanza, I'm sure you were all thoroughly impressed by my one DIY project entry. Oh yes, well it was a stunning table remodel after all ;) But in typical me fashion, I failed to blog about any more of the lovely creations I made during my year after undergrad. Those posts are coming... in due time. Getcha popcorn ready... or whatever. 

For all who started following my blog because I told you how I planned to blog my entire Israel trip last Easter, this is me finally owning up and saying "I'm sorry!" Sorry for promising wonderful, insightful entries regarding my time in the Holy Land. Sorry (again) for promising I'd get around to writing all about my trip right after I got home. --- Obviously, we see where those promises got us.

I will write an Israel entry... 

...and I'm going to do it this evening. Nothing like wine, some music, and time with my inner thoughts to wrap up a hectic school week. 

-AJM