IB Business Management

The Observer article has interesting implications for the way that firms market themselves, with a global study from the Unstereotype Alliance suggesting that firms benefit from espousing modern, tolerant values. 

Gold dust for BM students - and also for Economics students thinking about YED - as Aldi publishes its latest results, showing changing consumer tastes, and the fact that it is now selling much more of its own-brand premium range. 

However, the rate at which it is growing has slowed and this is a concern, and there are worries that as the economy recovers it is going to require better marketing to differentiate itself from its competitors. 

I've nothing against the previous leadership of the John Lewis Partnership, but the fact that it has revived their "never knowingly undersold" commitment speaks volumes for a failure of marketing.

The new pledge also applies to online sales and the company are using AI to price match against 25 top retailers, and there are some interesting insight into the inability of the company to remain competitive in 2022.

Are we going through another shift in shopping patterns, with Waitrose announcing plans to open 100 more convenience stores, suggesting that the company is looking to lower its rental costs, and attract high-value customers in urban locations. 

It represents an interesting pivot in its strategy. 

This is an interesting bit of marketing. WizzAir have changed their pricing model, offering an annual subscription for 499 euros - for another day - and then its price rises to 599 euros. 

However, there are already suggestions that you'll struggle to get your chosen departure airport, and, WizzAir also has a poor record as regards punctuality. 

So does this marketing tactic speak of strength or weakness? And to what extent does it have the capacity to damage brand reputation? SO why have they adopted it? It strikes me as a good way to generate a consistent revenue stream, and they're banking on the fact that many of these subscription offers aren't fully exploited by their consumers. 

Carlsberg has bought Robinson squash manufacturer Britvic, looking to diversify its business away from alcoholic in favour of non-alcoholic beverages. At the same time, Carlsberg have bought out Marston's share of its brewing joint venture which manufactures Pedigree and Hobgoblin. 

The Danish brewing giant are looking to reposition themselves in the UK market.  

This could go on a variety of boards, but I'm putting it here. Does the reversal of its position on fossil fuels have implications for BP's commitment to corporate social responsibility and the triple bottom line? 

And if so, for its brand image more generally? 

Really interesting look at how a small change to an aspect of customer service can have much larger implications for a brand. In this case, fast fashion brand, PrettyLittleThing, has annoyed customers by scrapping its free returns policy and charging customers £1.99 to return clothes.

The company argues that such a move is necessary because of rising costs, but it has attracted criticism because some argue that a lack of consistent sizing across the brand means that there are inevitably going to be many goods being returned. 

It also reflects concerns about sustainability with second-hand sites like Depop and Vinted growing in popularity. 

What's the essential feature of entrepreneurship? Risk-taking?

Little in the way of theory but lots of good anecdotal stuff from a number of prominent entrepreneurs. 

Nice little business aside, with Dr Martens seeing a significant slump in profits, a 43% reduction, which saw profits fall to £97m. 

As a result, the firms is looking to cut costs to offset weaker US demand. 

It's interesting to contrast the success of Marks & Spencer with the fate of the John Lewis Partnership, with the former having reported a sizeable increase in profit.

Pre-tax profits rose to £672.5m in the year to 30 March, a 41% increase, reflecting both cost cutting and strong sales across the store, reflecting an improved brand image. 

This article in the Guardian highlights a dramatic turnaround in the fortunes of one-time darling of the fashion sector Boohoo. The company who owns a range of brands - Debenhams, Warehouse, Dorothy Perkins and Pretty Little Thing - has moved from a position of having £6m in net cash a year ago to net debts of £95m by the end of February.

The first thing you might want to investigate is how firms can easily keep trading in such circumstances - but I'd then want to know what has happened to produce such a change and how the business might be expected to respond. At the moment, it has very much lost its lustre. 

The BBC's Theo Leggett looks at the current woes of Tesla - falling sales, job cuts, a product recall of the Cybertruck, and the sacking of the supercharger network - and wonders what it means for the organisation.

It's suggested that the perception of the brand has changed. Tesla is no longer seen as the disruptor it once was, it face increased competition, notably from China and it will be interesting see whether the renewed focus on driver autonomy really is the way forward. 

Good news for the John Lewis Partnership in that the eponymous John Lewis has halved its losses and Waitrose sales have risen and the company have diversified, with the opening of an in-store bakery, Gail's, and a tie up with booksellers, Waterstones. The company are also going to open 100 convenience stores. 

There's so much going on here - not least in terms of the Ansoff Matrix. 

This could be Microeconomics but I've put it here to show how ethical marketing can help companies build brand loyalty and how that can be sustained, even during the cost of living crisis, as Fairtrade products remain popular with consumers. 

I'm going to put this here: it's interesting a gives an insight into how firms respond to changing market conditions. In this case, it's Volkswagen who are retrenching and closing factories in Germany - something that they've never done before - trying to cut costs and remain competitive. Of course, this may have adverse implications for the brand too.

Proof too, that even if you're a global brand, you can't take your market for granted. 

A companion piece to the earlier BBC article about WizzAir's new subscription model which has seemingly sold out in most markets, and may also have some hidden catches.

As a result, it will be interesting to see whether the net effect of the deal is going to be positive or not: clearly it guarantees the airline a certain revenue stream but will the downsides come back to haunt it. And in future years will we use it as a case study of a good or a bad bit of marketing.  

This is an interesting article into how marketing has changed among Britain's coffee chains, with Pret A Manger the latest chain to row back on its subscription model.

Whereas previously Pret subscribers could pay £30 per month and get up to five 'free' coffees a day and a 20% discount on food. However, that's changing. A new £10 monthly subscription will entitle you to five half-priced coffees but there's no discount on food.

Whilst this has attracted criticism, it should be noted that other chains have made their loyalty schemes less generous in response to higher costs. However, any such move is risky and risks alienating existing subscribers. 

This BBC clip looks at the ubiquity of Amazon, on the 30th anniversary of the company's emergence, and wonders whether it can continue to grow as it has in its first 30 years of existence. 

As the article notes: "It is also a major streamer and media company (Amazon Prime Video); a market leader in home camera systems (Ring) and smart speakers (Alexa) and tablets and e-readers (Kindle); it hosts and supports vast swathes of the internet (Amazon Web Services); and much more besides." It's a highly diversified business but you have to ask, where else can it go? 

It seems to be the case that it will need to focus on market development, although it's also likely to face challengers in markets such as China. 

It's interesting to see a CEO make a public statement that accepts that he presides over an organization which is experiencing problems of organizational culture. However, that's what the boss at Boeing has just done, and he's probably correct. 

The article notes that there have been "concerns about its safety culture" and the past five years, starting with "two 737 Max aircraft...lost in separate, but almost identical accidents, killing 346 people." rather implies that Boeing has focused on profit rather than safety standards.

This excellent BBC article looks at hoe Starbucks are facing a challenging trading environment; costs are up, and unions are also unhappy with pay and working conditions. As a result, the article wonders whether the brand has lost its lustre, and whether or not it will be able to regain its sparkle, or whether this is the 'beginning of the end'.

I'm putting this here; it could easily be in the Microeconomic section of the board - however, it's an interesting piece from a marketing point of view.

Are loyalty discounts a good deal for consumers? Certainly pricing is an important part of the marketing mix but the Competition and Markets Authority are investigating the practice among concerns that it's not always in consumers' interests. 

I wasn't aware what 'functional drinks' are - but this clip tells you what they are, starting by looking at the initial success of Red Bull. However, aside from the importance of marketing in explaining the rise of the 'functional drink' this clip looks at the development of the sector, and you might be able to apply your knowledge of the Ansoff Matrix - market development anyone?

But do they do what they claim? I'd doubt it...

A really good look at the implications of growth - and success in growing a company can alter brand image and organisational culture. Whereas at its inception, BrewDog was rightly seen as an upstart, revolutionising the sector, it is now looked at in a less flattering light, dogged by allegations about an unhealthy culture and some poor marketing choices.

However, to what extent is this inevitable when a company grows as rapidly as it did - to become the 7th biggest beer brand in the UK? And does the CEO who is standing down James Watt, really care given the extent to which he's profited from the business? 

This Business Insider looks at the rise of the latest on-trend shoe brand, Hoka, the producer of an increasingly prominent sports shoe. Within just over a decade of its creation, the brand has grown from a niche product serving mountain runners to something more mainstream. 

This clip looks at how this can happen, considering how the shoe's design, and subsequent marketing have created its value proposition allowing it to claim a $1 billion stake in the lucrative sports shoe market.