Solo - Small timer conducting geographical expansion

According to Barwise and Robertson one of the ways to grow a brand is to expand geographically. A very interesting example is the traditional Norwegian soda brand, Solo. Solo's campaign "Soon to be world famous" got a lot of attention in Norway, with creative elements in getting norwegians to send Solo abroad and make people worldwide take photographs with the soda.

It will be interesting to see if Solo can stay true to their current associations when going abroad. Solo has strong associations to Norway and Try has done a great job in leveraging this in their campaign with Solo. However, Solo also has associations to easter and snow which might prove harder to keep consistent in an expansion. If they lose these associations Solo might find themselves in an inferior position in the norwegian market compared to pre-launch. Regardless, a bold move by Solo that deserves some praise. A fun fact is that Solo actually had a larger market share than Fanta in the Norwegian market last year.

iPhone 5

Tim Cook recently presented the Apple figures for the 2nd quarter, followed by a decline in the Apple stocks. The sales of the iPhone 4s has gone down, presumably because consumers are awaiting the much debated iPhone 5. According to Apple's latest annual report, they have had a massive growth in the number of iPhones sold. In 2011, 72 million iPhones where sold,  in comparison 40 million units where sold in 2010.

There are rumors that iPhone5 will not be compatible with the existing chargers and accessories. Is this a good idea? In order for Apple to change the input design on their phone they need to convey that this will actually add value to the consumer. This is a challenging task when people already have acquired numerous accessory devices such as protective cases, car chargers et cetera. It will thus be interesting to see if this change will enhance the value consumers see when purchasing a phone.

The iPhone 5?

It will be interesting to see if Apple delivers a result that is congruent with the past years trend. It has been estimated that in 2015 there will be delivered 1 billion smartphones, compared to the 500 million delivered this year. As emerging countries gain the purchasing power to acquire smartphones, Samsung, Google and HTC is expected to see a revenue growth. However, Apple has a symbolic product and should look to keep their margins and price, hence they should not get greedy and pursue the growing markets in emerging economies. I expect to see a change that offers value to customers and that the price level is consistent with the previous iPhones. If Apple can convince the customers that there is an added value, they will see huge growth in accessory sales as well as iPhones. It will be interesting to see if they can achieve over 100 million units sold.

Rimi - A giant in the gutter

The Norwegian grocery store chain Rimi have recently been in the media due to a quite interesting marketing stunt. Rimi allowed customers to pick up a coupon at their stores which allowed them the purchase of two tickets to a Justin Bieber concert. As Rimi's market share has been steadily declining for the past ten years, this seems more as a desperate stunt for publicity than a thoroughly strategic campaign. How come? Rimi have changed their strategy from being a low-price chain (looong time ago in consumers mind), to a more family centered strategy where they offer consumers a quick and affordable shopping experience. In Rimi's eyes this allows consumers to spend more time doing more important things, such as spending time with your family.

How is this consistent with the marketing campaign? The marketing campaign in my mind is more targeted towards a younger crowd, which is inconsistent with the more mature family segment they are currently targeting. In so, their marketing stunts should be more targeted towards things that matter for this segment. Such things could be in-store child-care, special deals on family products, quantity discounts et cetera. AC Nielsen and Trond Blindheim correctly address that the things that matters in the Norwegian grocery market are location, price, parking and a wide assortment. Rimi has yet to address these variables to a clear extent and most definitely have imprecise associations. It is sad to see the past years marketing efforts by Rimi as it clearly shows a lack of knowledge within the fields of marketing and strategy.

Shape up!!