Ronald McDonald loses his smile

Since its creation in 1940, McDonald’s has been growing until becoming one of the biggest companies of the world. But as every product, has an industry life cycle, and it seems that the brand image of McDonald’s is starting to decline. The benefits are a 15% lower regarding the last year and its competitors are catching more and more customers throughout the USA.

To face this situation, McDonald’s focused on international market and tried catching middle class customers in developing countries such as Brazil and China. But actually, the problem of McDonald’s is more complex than this. What it really happens is that the brand image of this company is not enough competitive as it used to be.

McDonald’s means cheap food, however, the new competitors are more attractive to young people who prefer to pay a little more for a better quality product which can also customize as they want to.

McDonald's included chicken sandwiches, salads and fruit in its meal, but the image of the company is built around the burger and fries, which is really difficult to change it.

If the cheap food industry is saturated in developed countries as the market tendencies seem to indicate, what should McDonald’s do?

This is not a problem of sales, intermediaries or price. The problem is about the product and how the brand image is located in mind’s customer.

In order to figure out this problem we suggest creating new products. But we are not talking about salads and fruit. Since the brand image of McDonald’s is too strong to change, we believe they should still making hamburgers but with a high quality. In this way the brand will still being related to the same product with only one difference: the quality would be better. Moreover, we believe that publicity will play an important role to change the mind’s customers.

Summing up, McDonald’s has to face with a new competitive environment with an old brand image that is not efficient any more. In order to be competitive we think they should invest in creating products with more quality but trying not to increase the price so much.

PortAventura will take in a new Ferrari amusement park in 2016

PortAventura is a huge theme park and a resort located between Vila-seca and Salou, in the south of Barcelona. It attracts around 4 million visitors every year and is one of the most famous theme parks in Spain and Europe.

This park includes five different areas based on historic civilizations, it also has an aquatic park called Costa Caribe Aquatic Park and four hotels inspired in its park areas.

One of the most important and so that one of its future objectives is to build up a new resort called Ferrari Land which it will be an hospitality complex set up by some attractions and a five star hotel inspired in Ferrari’s trademark. This is a great example of a technology aspect because they are development some new aspects in a concreted target market.

For instance, PortAventura has arrived to an agreement with Ferrari to build up a new theme park inspired in the car’s brand, this will be a project that is expected to be operational in 2016 and it will be a total investment of 100 million of euros.

Ferrari Land will take up about 75.000 square meter of space and it will also have some rides for all age ranges. The complex will have the faster and higher accelerator from Europe and the biggest roller-coaster from PortAventura park.

Ferrari has its own thematic park in Abu Dhabi city called Ferrari World and PortAventura will take in the first in Europe with the same characteristics.

Andrea Perrone, Ferrari Brand administrator, says that Ferrari World has been successful and moreover they had received lots of petitions to build up new theme parks with Ferrari’s brand. They had selected Investindustrial, PortAventura society, because is the opportunity to bring Ferrari’s spirit to Spain, where that brand has some fans and supporters.

Ferrari is placed as the most valuable brand name of the world and PortAventura Park is the second resort from Europe and the first from the Mediterranean.

In the end, PortAventura has carried out a strategy from expansion and a huge globalization with a total investment of 125 million of euros since 2009.

In 2011, PortAventura build up a children area called Sésamo Aventura; in 2012 the highest roller-coster from Europe called Shambhala and in 2013 they extend Costa Caribe Aquatic Park. 

Have a rest and take a couple of minutes to watch this video from a simulation of Ferrari Land!

http://www.eleconomista.es/mercados-cotizaciones/noticias/5618669/03/14/Ferrari-tendra-en-2016-su-propio-parque-tematico-en-PortAventura.html#.Kku8kAwcZJ4ag6g

Cost leadership Strategy

According to Michael Porter there are two strategies:

· Differential strategy consists in offer exclusives products.

· Cost Leadership Strategy achieved having the lowest prices in target market segment. This strategy is only viable for large firms with huge production of volumes and a big market share.

A good example could be Lefties, from Inditex’s brand, which was created in order to fight with low cost brands. Lefties consists in a clothing brand which offers products to customers from Zara’s previous season. However, they also have their own exclusive pieces.

At the present time the economic crisis has caused not only a 5% decrease on Inditex sales but also a fast growing in low cost brands as Primark or H&M. Whilst Zara’s shops are fading, the openings of Lefties’ shops are frequently. Nowadays, there are 86 shops in Spain and 16 in Portugal.

Besides this, on the last months the locations of these shops have been redesigned. Fortunately, they are not untidy and gloomy shops as many years ago. These days, it comes as enticing shops situated in malls. This is also an important factor because sales in these centers have suffered a drastic descent since 2007. The opening of low cost stores like Lefties causes an increment of affluence on these shopping centers.

Therefore Inditex is willing to expand this brand in order to achieve their objectives and to be a fashion leader in the market. For that reason it is necessary to adapt it supply at the demand and to reduce their prices for beating brands like Primark (their main competitor). As a result, they increase their sales, in order to keep their quality but with lower prices.

To conclude, a cost leadership strategy has the disadvantage in losing customers because of the reputation from poor quality, but if they accomplish that people associated their low cost brand to the current one, as a substitute, is available. Indeed, it suppose the success for Inditex in the current market.

Travel agencies

Travel agencies

Today choosing a travel agency based largely on economic opportunities, managing new technology or customer age. But it is important to consider the advantages of both the one and the other

For traditional agencies we can highlight what is its personalized service, advice on destinations, to pay in hand and allow extra services. Unlike the online agencies where payment is via credit card, prices are cheaper, accessibility and immediacy to book the trip and deals you can get are aspects that differentiate why today are emerging custom agencies.

Surely direct sales is a key to economic recovery in domestic tourism factor. And one of their strategies is to be present in social networks because it is almost indispensable for the travel industry. Among the most popular agencies include Facebook and Twitter. This is not to make a direct sale through the same but that help promote and provide quality image.

With all of this we believe it is important to ask the question. Is there a future for travel agencies?

As future professionals in the industry want to be positive but still be realistic about the great changes that have occurred thanks to technology.

Therefore we believe it does, but only arise that may adapt to new changes and are smaller and above all highly specialized, highly technical and operating as far as possible in internet agencies and a physical location for personalized attention would be ideal.

As encouraging fact none of the travel agencies in Spanish adventure have closed in recent years. As examples we can mention (Marco Polo, Trekking and Adventure, Taranna, Amber Travel).

Not everything is lost and if we put our creativity game having clear our customer segment we want to capture, you can create a small business doing what we like ... go!

Does anyone dare this adventure?

http://www.conectaturismo.com/todo-sobre-agencias-de-viajes/canal-online-presente-y-futuro-de-las-agencias-de-viajes/

Starbucks

Today’s article is for all the coffee lovers. We are going to investigate the strategies of the famous coffee company Starbucks. A vast majority of you has been to Starbucks and has tasted its delicious coffees. This brand is famous all over the world and counts with 21,160 stores in 63 countries and territories, starting out with one store in Seattle. It is even a fashion to drink the “Starbucks coffee”. But what makes a single coffee so special?

Take a minute to think about if you have ever seen a conventional advertisement in the newspaper or television of Starbucks, like from big companies such as Mc Donalds? The answer is no or only very few times. The company has tried very hard to avoid traditional marketing in order to give it a name.

They rely on the excellent quality of the coffee combined with a cosy atmosphere in order to create customer satisfaction. Everyone feels comfortable on the relaxing sofas at the coffee shops, which makes it a good possibility to escape the stress of every day’s life. Even though the price of a coffee is higher than at another coffee store, the customers seem to accept it, without hesitating.

The customer satisfaction is also established by the treatment one perceives by entering the store. You can create your own coffee out of different flavours. At the end the employee asks you for your name to write it on the cup. This way, the customer feels unique and as a participant in the process of making his own coffee.

Every season, they make special offers related to Christmas, summer, etc. So there are always new flavours to discover. Combined with the high quality, it is a good marketing strategy, which produces a customer loyalty. The customers come back regularly and tell their friends and families about it. The company counts strongly on Word-of-Mouth marketing.

Furthermore, they have created a “Starbucks community”, where individuals can register and share their Starbucks experiences with others. The community not only brings people together, but it also helps the company to improve their services, because they are involved actively in the discussions.

In our opinion, the company did a great job to become the Starbucks we now nowadays, considering they started out with a single store and a simple concept. Every company should take Starbucks as an example for its successful marketing strategies. 

www.starbucks.com

Market tendencies: technology

It is clear that the currently market is changing in a lot of aspects. The economy, politics and the situation of the markets can influence to every firm.  But in this post we will focus on technology.

Making a prediction about technology is getting more and more difficult, because the short terms, solutions and market tendencies are changing very fast. But we would like to explain two technology business strategies that are taking place in the current market.

Big Data

To sum it up in few words, Big Data consists on capturing, storing, searching, sharing and adding value, big amounts of data which up to date has been underused and inaccessible.

In fact, companies like Facebook, Google or Amazon have succeeded bearing in mind Bid Data in its business strategy. The analysis of massive data is the main advantage of the business model of these companies.  The volume of advertising that some of these companies sell is so high, due to the existence of these massive data. It represents a benefit for advertisers thanks to the 'target process', which allow these companies to give a personalized message to each person. Analyze the Big Data can give to customers an offer that with a high percentage of probability will be of interest. The key is to make it in a way that the client feels that what you offer is only for him. "

Corporate Social Networking

Uncontrolled use of social networks can cause low productivity at work. That's why instead of banning them, the need for communication is satisfied by using corporate social networks designed exclusively for the organization.

Corporate Social networks are working tools that are implemented in organizations, which allow workers to collaborate with each other, interact and exchange ideas in their work schedule. The challenge is to help companies become more competitive using platforms that create value.

Moreover, this type of communication helps departments of companies to be related and interconnected, even if they are in different cities or countries. This creates a sense of belonging and permanence in it.

Summing up, every business strategy should take into account the new technologies, for this reason we thought it was important to write about 2 of them.   

http://www.marketingdirecto.com/especiales/recopilatorios-2014-tendencias-2015/6-tendencias-tecnologicas-que-podrian-cambiar-el-futuro-en-este-2015/

HOW TO TRANSFORM A HOBBY IN A SUCCESSFUL BUSINESS?

Thursday, 29^th January, 2015 - La Vanguardia (printed version)

Special Monograph - Tendencies

Nowadays, many people think that a hobby cannot be a business and a lot less a worthwhile company. 

Thanks to the revolution of the hand-made products, the handicraft world has increased. People have created some new movements known as HANDMADE or DO IT YOURSELF. The peculiarity of the objects and the help of the Internet have made that people see a possibility in creating a business, in order to earn a little money for living.  

The vast majority who have decided to work with this new concept called HANDMADE have decided to open their own business or shop.

The HANDMADE sector has many entrepreneurs who make clothes and objects for fondness. Nevertheless, there are more and more people that are joining in that new area like for example some engineers, architects, computer technicians, etc. to invest their knowledge and manual labors for their incomes.

The exhibitions and trade fairs that are commonly organized around the country are valuable meeting points because many new companies can introduce themselves. The HANDMADE FESTIVAL will be organized on April 24th, 25th and 26^th in Barcelona and will hold a total of 250 companies, from freelances to established brands.

Social networks as Instagram, Facebook, Pinterest and blogs are crucial to be the key to success in that world, due to the fact that many of the entrepreneurs earn about 50% of the profits in these web pages.

The great majority of these people who work in HANDMADE business claim that they might work a total of 12 hours per day to get their work off the ground. On the other hand, others says that a good location for their shops is essential to continue in this huge market.

We encourage you to visit some of these delightful HANDMADE shops in Barcelona, here you have some addresses!! 

Veló by zin, they design and make personalized footwear – Banys Vells Street, 3

http://velobyzin.com/es/

Mina Minero, textile collection shop – De la Virreina Square, 7

http://minaminero.blogspot.com.es/

I love Kutchi, handicrafts material sales, Andrea Doria Street, 41

http://ilovekutchi.com/shop/es/


IF YOU DECIDE TO VISIT ONE OF THIS SHOPS, PLEASE, LEAVE A COMMENT AND EXPLAIN TO US YOUR EXPERIENCE!! THANKS!