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Tag: market share

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At Issue } essential reading

Customer Loyalty: Warmth, Competence Are Key

Chris Malone
Sep 2, 2010

We've all had the experience of knowing someone we would recommend for a job but wouldn't bring home to dinner. The reverse is also familiar: There is someone we're happy to have to dinner but wouldn't recommend for a job. In the first instance, we're sure our colleague is competent, but we feel no real personal bond. In the second instance, we respond to the warmth of our friend but don't feel he is competent for a particular role. According to a recent study of more than a thousand representative U.S. consumers, people respond to brands in much the same way they instinctively perceive and judge one another--on the basis of warmth and competence.

How Much Old Spice Body Wash Has the Old Spice Guy Sold?

Jul 26, 2010

Isaiah Mustafa, aka "The Man Your Man Could Smell Like," has clearly broken through all previous viral-video records and achieved pop-icon status. The question is: How much Old Spice body wash has he sold? And the answer is a bit of a mystery.

Why You Are Not Drinking Nearly Enough Starbucks

May 18, 2010

Remember the days of two Starbucks stores on one corner in some cities? That was just the beginning. The brand that many experts said was all washed up two years ago is back, with two consecutive quarters of same-store-sales gains -- and it wants you to drink a lot more of its coffee. Despite a seemingly ubiquitous presence with 11,000 coffeehouses, Starbucks estimates that it holds less than 5% of the brewed-coffee market in the U.S. So the company is looking for ways to get in on more of that business, whether it reaches people through fast-food chains, in their homes or at their desks.

Bing Marketing Moves From Search Overload To 'Los Links'

May 12, 2010

It is often said about the internet that you cannot advertise your way to market share. At least that's what former Ask.com CEO Jim Lanzone will tell you. Priceline.com and Hulu, of course, have other ideas. So what of Microsoft's $100 million campaign for Bing? Its query share hit 11.8% in April, according to ComScore, up from 8.4% since Microsoft's search service was re-launched 10 months ago. "Bing continues to impress with continued market share gains," Citibank analyst Mark Mahaney said in a research note.

Chrysler Posts Positive Report

Apr 22, 2010

Chrysler's message with its latest quarterly report is that things are turning around, and that the company isn't the Larry King of automakers: This time the marriage is going to work. The company said net revenues increased to $9.7 billion in the first quarter this year, representing a 4% increase versus the prior quarter. Chrysler says it has a profit of $143 million and positive cash flow of $1.5 billion, giving the Auburn Hills, Mich.-based automaker, a unit of Fiat, $7.4 billion in cash as of month's end, March.

Levi's Shoots for the High-End Hipster

Apr 14, 2010

In the wake of a recession that caused consumers to question the value of $198 jeans, Levi Strauss & Co. is reintroducing consumers to its $198 jeans. The 157-year-old company is trying to reinvent itself as not just a purveyor of basics but as an edgier brand suitable for the fashion cognoscenti. By opening lavish boutiques, like one in London, renaming its high-end labels, and hiring executives from competing designer brands like Ralph Lauren and 7 for All Mankind, the company is seeking to improve its fashion street cred, a move that it hopes will reignite sales, which have stabilized at around $4 billion annually after peaking at $7.1 billion 1996.

Nokia Brand Needs Firm Direction

Marketing Magazine
Apr 6, 2010

Nokia retains a massive share of the global mobile phone market, but cracks are beginning to appear in its once-impenetrable leadership. In particular, the electronics brand is struggling to defend its lead in smartphones - the fastest-growing and most profitable part of the mobile phone business.

Soft in the Middle

James Surowiecki
Mar 24, 2010

While the high and low ends are thriving, the middle of the market is in trouble. Previously, successful companies tended to gravitate toward what historians of retail have called the Big Middle, because that’s where most of the customers were. These days, the Big Middle is looking more like “the mushy middle” (in the formulation of the consultants Al and Laura Ries). The companies there—Sony, Dell, General Motors, and the like—find themselves squeezed from both sides (just as, in a way, middle-class workers do in a time of growing income inequality). The products made by midrange companies are neither exceptional enough to justify premium prices nor cheap enough to win over value-conscious consumers. Furthermore, the squeeze is getting tighter every day.

Facebook More Popular Than Google? Let the Ad Wars Begin

Mar 16, 2010

According to the latest Hitwise analysis, Google's lost its crown as the most-visited Web site in the U.S. last week. The new king of web site traffic is, of course, Facebook. In the future, technohistorians may marvel at this event. During the Winter holidays there were a few momentary spikes in traffic which placed Facebook on the top, but if you check out the graph of the long term trend shown above, you can see Facebook's meteoric rise is now on target to meet or beat Google. And if that curve continues on its trajectory, which it may well do for a while (its market share is 185% up over the same week in 2009, for example,) Facebook will become number one by a huge margin, versus the tiddly little 0.04% separation it currently has above Google's 7.03% share of average weekly market share.

The Secrets to Subaru's Success; Loyal Fans Boost Market Share

Mar 11, 2010

When Russell Levine's lease on his 2006 Subaru Forester was coming to an end, his car hunt was quick. Levine bought another Forester SUV, his fourth. Levine, 48, of Huntington Woods never was tempted to try another brand. "The data speaks for itself. It's highly rated by independent agencies. The mileage is good," said Levine, an information technology architect who recently started commuting to a new job at General Electric's new tech center in Van Buren Township. Subaru's message of high safety ratings, fuel economy and resale values is resonating with more drivers, especially highly educated ones that automakers like to capture.

Feeling Heat From Ford, GM Reshuffles Managers

Sharon Terlep and Neal E. Boudette
Mar 3, 2010

Ford Motor Co. surpassed General Motors Co. in sales last month for the first time in at least 50 years, presenting a new headache for the government-owned car maker as it struggles to return to profitability. Hours after the sales results were disclosed Tuesday, GM announced an overhaul of its top managers—the second executive shuffle in three months. The news underscored the impatience of GM Chief Executive Edward E. Whitacre Jr. and the heat the company is feeling from a resurgent Ford.

Saks To Add More Exclusive Lines

Feb 25, 2010

Luxury retailer Saks Inc. is betting that it can grab market share, improve profits and stand out from rivals by adding more exclusive lines. Merchandise that can't be found anywhere else makes up less than 10% of the assortment at Saks Fifth Avenue stores. But the New York-based retailer said Wednesday it will announce several new product lines in 2010 and will make exclusive brands about 20% of its offerings over the next several years.

Private-Label Growth Outpacing Brands

Feb 9, 2010

While private label still represents a small piece of retail wine and spirits volume, its growth rates are considerably outpacing those of national brands, confirms the latest data from The Nielsen Company. The wine/spirits private-label growth trend was one of many highlighted by Nielsen beverage alcohol VPs/group client directors Danny Brager and Nick Lake in a Feb. 5 Webinar focused on how economy-driven factors are affecting off- and on-premise sales of beer, wine and spirits.

Audi Drives for Bigger Share of U.S. Market

Nov 25, 2009

For some auto makers, the global recession has spelled bankruptcy or near extinction. For Volkswagen AG's Audi unit, it could be the biggest break in decades. Audi, founded a century ago, counts as one of the world's leading luxury brands. Yet it has failed to become a major player in the U.S. Now, the German car maker, based in this small city in Bavaria, is redoubling efforts to break out of its rut in the world's largest car market. Audi has invested heavily in the U.S. this year, a counterintuitive approach at a time when its chief rivals are cutting costs. The car maker increased 2009 marketing spending by 20%, pouring millions of dollars into Super Bowl and other high-impact ads, and has unveiled eight new models in the U.S. this year.

TiVo Is Slowly Dying

Nov 25, 2009

It's always strange when a company that's become synonymous with its market—like Kleenex to tissues, or Xerox to copiers—starts fading. And that's exactly what happening to TiVo, whose subscriber level has dropped to where it was in 2004. This from TiVo's SEC filing for last quarter, which shows the company losing 314,000 subscribers in the period, capping more than year an a half of fairly steady decline. They lay claim to just 8% of the roughly 38m active DVRs in the US right now. This is not great.

How Microsoft Blew It With Windows Mobile

Nov 17, 2009

Microsoft Windows continues to dominate the PC market with a 90 percent market-share stronghold, but when it comes to smartphones, Microsoft is getting beat up worse than a mustachioed villain in a Jackie Chan movie. Windows Mobile has lost nearly a third of its smartphone market share since 2008, research firm Gartner reports. Windows Mobile had 11 percent of the global smartphone market in the third quarter of 2008, according to Gartner, and last quarter Windows Mobile’s market share plummeted to 7.9 percent. Meanwhile, Apple’s global market share grew from 12.9 percent to 17.1 percent, and RIM saw a rise from 16 percent to 20.8 percent, according to Gartner’s figures.

iPhone Poised to Snup Up More Business Users?

Nov 4, 2009

When you think of corporate smartphones, you tend to think almost automatically of RIM's BlackBerrys--they're solid, reliable, iconic, successful and have sewn up something like 40% of that market. The iPhone, with its glossy looks, high-tech allure, reputation as a gaming and entertainment platform and relatively high unit costs isn't something you'd necessarily associate with a corporate environment. Apple itself has gone on record to state that the tens of thousands of apps that are helping to make the phone a success (thousands of which seem business-oriented) are most definitely not business tools, implying the phone itself isn't.

Don't Fall Into The ROI Trap

Nov 2, 2009

Nobody's arguing that SEM (both in its paid and organic subspecialties) can deliver ROI. But viewing ROI as a primary and exclusive goal for your organization's search campaigns is dangerously myopic. Here's why:

8 Guaranteed Ways to Kill Your Brand

Oct 27, 2009

Throughout the recession, many marketers have relied on so-called "recession-survival" lessons to drive their strategies. Unfortunately, these aren't always lessons as much as they are myths. We thought we would help dispel some of them and share a few tips to spur positive momentum.

Procter & Gamble and the Beauty of Small Wins

Oct 19, 2009

Yesterday I facilitated a discussion at the Magazine Publishers Association annual Innovation Conference with Melanie Healey, the Group President of North America for Procter & Gamble. She told a story with some important innovation implications. The story dates back to the 1990s, when Healey was a brand manager in Brazil. She was responsible for growing P&G's Hipoglos brand of diaper rash ointments. The problem? The product already had 99 percent household penetration. A tough challenge, right?

Naming and Branding v. Category Domination

Sep 4, 2009

The Branding Strategy Insider has me thinking about the relationship between brand naming and category domination. They think that dominating a category is more important than extending your brand - no matter how well regarded your brand name is, it simply cannot grow if the category is dying or overly crowded. Kodak is the prime example here: we all know the brand name, but few of us use film anymore and their crossover into digital photography has been rocky. The advice here is to start a new brand in a new category, aka Starbucks, Red Bull and BlackBerry. The idea is to have a narrow focus, get in first and grab deep recognition and reach. Clorox = bleach. Tabasco = hot sauce. That's nice work, if you can get it.

The Craigslist Credo: Craigslist vs. eBay

Aug 27, 2009

In 2005 Fortune magazine published a piece by Adam Lashinsky called Burning Sensation, which described the threat craigslist posed to newspapers. But it didn’t ignore the threat that other tech companies posed to craigslist: “Even as Craigslist flexes its considerable muscles, the disruptor is facing the challenge of disruption… eBay has started Kijiji, a classified business for non-U.S. markets that can only be described as Craigslist-like. Netscape co-founder Marc Andreessen is behind a company called Ning, whose software includes an application called Anytown Marketplace that can build online classified sites. The biggest threat, as usual, is Google. It has introduced Google Base, where users can upload anything — e.g., “49ers tickets for sale” — into its searchable database… Google’s technological prowess — and money — mean it can add features in weeks that Craigslist has contemplated for years.” Three years later the story was still the same.

The Gap Between Google and Rivals May Be Smaller Than You Think

Aug 15, 2009

It’s no secret that even with their recently-announced alliance, Yahoo and Microsoft will lag well behind Google in the hugely profitable search and search advertising business. How far behind? With a combined 28 percent of the American search market, Yahoo and Microsoft could double their usage and still trail Google, which accounts for 65 percent of the market. But by another important measure, the two sides are much closer. ComScore found that for the combined Yahoo-Microsoft, “searcher penetration,” or the percentage of the online population in the United States that uses one of those search engines, is 73 percent. Google’s searcher penetration is higher, but not by that much: at 84 percent.

The Mac Versus PC Debate Has Never Been Clearer

Jul 24, 2009

“Our goal is not to build the most computers. It’s to build the best.” That was Apple COO Tim Cook two days ago during Apple’s quarterly earnings call. Sure, it may sound like spin from an executive who doesn’t have a better answer as to why Apple isn’t competing in the low-end of the market, and thus, gaining market share. But it’s not.

The Ebbs And Flows Of Market Share

Jul 17, 2009

It's been just over six weeks since the birth of Bing. While I didn't actually say Microsoft's new search baby was ugly, I was less than optimistic about its chances of unseating Google in a popularity contest. So, with every measurement panel carefully following Bing's debut, I think it's time to see just how the little engine is doing in the search (oops, make that "decision") sandbox.

Brand Value Creation — Financial, Part 2

Jun 12, 2009

Why should stockholders care about a company’s brand? wall-street-signThat’s the subject of today’s post, the 3rd in a series on the many ways a brand creates value for a company.

'Tide Thursday' Comes in Softer Than Expected

May 29, 2009

Procter & Gamble Co.'s "Tide Thursday" looks a bit less dramatic than Philip Morris' price-slashing "Marlboro Friday" 16 years ago, but it also bodes much better for ad spending.

Saturn’s Potential Questioned

May 20, 2009

The new owners of Saturn – whoever they are – will get a franchise that offers a fresh array of products and a dealer network well versed in providing a superior retail customer experience. What the new Saturn owners will not get, though, is a brand with a demonstrated ability to capture a substantial share of the U.S. market.

Wal-Mart Steps Up Its Game in Electronics Aisle

May 18, 2009

Wal-Mart Stores Inc. is revamping the electronics departments in its more than 3,500 U.S. stores this week, ramping up an aggressive battle with Best Buy Co. and Amazon.com to seize customers up for grabs due to the demise of Circuit City Stores Inc. Wal-Mart's roomier and more interactive electronics displays begin arriving in stores Monday, showcasing the latest mobile phones and portable computers, and including standalone sections for popular brands such as Nintendo Co. and Apple Inc.

How McDonald's Is Winning More Than the Value Wars

May 13, 2009

It wasn't enough that McDonald's is beating competitors in same-store sales and winning the value-perception wars. Thanks to stepped-up burger marketing, it's now getting higher-margin customers, too.

The Danger of Category Short-Sightedness

Apr 13, 2009

It is not what a company sells but what the customers buy, so it's a fundamentally flawed exercise for marketers to start dictating where a market begins and ends. The archetypal example of the strategic vulnerability of categories has always been the early American train companies.

Colgate's World-Beating Performance

Apr 2, 2009

Consumers have sworn off many things in this recession. Brushing their teeth is not one of them. That's good news for Colgate-Palmolive (CL), which for the past five years has slashed costs, raised prices, and flooded developing markets with its wares to counter a stagnant oral-care market in the U.S. as well as fierce competition from Procter & Gamble's (PG) Crest. The results: world-beating market shares for Colgate's toothpastes (45%) and manual toothbrushes (30%) and a Top 10 position in BusinessWeek's list of best-performing companies.

Hyundai, Using a Safety Net, Wins Market Share

Feb 5, 2009

TWENTY-THREE years after it started selling cars in the United States, and in the midst of an industrywide slump that has pushed some competitors to the brink of bankruptcy, the Korean automaker Hyundai spent $3 million to tell Americans watching the Super Bowl how to say its name correctly.

Kia Is Ready to Score During Recession

Feb 3, 2009

A weak won and a powerful yen give Korea's Kia a chance to win market share as others struggle. One strategy: a sports-marketing blitz.

Making vs. Taking

Seth Godin
Dec 3, 2008

That's the choice most of us make when we launch a product or service. We can make a market or we can take share from a market.


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