Thursday, January 29, 2009

Mass Customization: Nike v. Puma

Mass marketing and production are officially a thing of the past. With the introduction of mass customization, companies of all different industries and sizes are now able to offer customers not just a product, but personalized experiences with the product. And although the route in which the customer takes to get their customized experience differs from company to company, in the end, mass customization comes down to a successful business venture that is proving to be satisfying and profitable.

Nike has really done something truly unique to this customization process. They have not just simply allowed consumers to design their shoe. They have given Nike fans a place to express themselves, and in doing so, created a distinctive customization experience. By allowing customers to interact with the product and make it their own, they are creating a relationship between not only the product and the consumer, but the brand and the consumer as well.

Nike’s approach in shoe customization is fairly simple. First, pick the shoe, and then pick the colors. It’s easy. There isn’t too many choices where ones is sitting there wondering what the heck to pick. And, there aren’t too few choices where your customized shoe isn’t exactly original. This is what makes Nike’s customized shoes so successful. Nike has chosen to allow every person, no matter how technologically savvy to be able to create his or her own shoes with just enough say so that they are indeed customized, but without the danger of having too much.

The Nike site is also much…smoother (I guess is the word I’m looking for). I mean that the site is sleek and chic. Anyone would be attracted to such a cool looking and working site, complete with not only shoes, but apparel and accessories as well, some of which are also customizable. Man or woman, old or young, Nike has really hit the nail on the head in the design of their website. Sometimes I think there is the threat of designing a website that is too feminine or too masculine. Especially with sports related products, many times companies can run into the more masculine feel, which is a turn off to women. However, Nike has done a wonderful job with the balance of their website.

Nike even has a section of their website that is dedicated to the NikeiD studio in New York City at NikeTown. They have successfully integrated the online customization with the in-store customization, and made it possible to access each area in both places. NikeTown actually has computers in the store where people can hop on the online studio and create their customized shoes. They have brought the Internet to the store, and the store to the Internet.

Puma’s Mongolian Shoe BBQ idea is interesting to say the least. But why a Mongolian BBQ? Puma says, “…the origin of the BBQ has helped us understand that everyone has different taste. So at our BBQ we have a generous assortment of pre-cut materials, so you can cook up something that suits your style”. The idea is that Puma customers have many different choices in terms of fabric colors, patterns and prints.

However, there comes a point, which I believe Puma has reached, when too many options are offered in the customization of the shoes. It was very overwhelming to create a shoe. The changes that I made to see each of the choices was slow to reload, and the sample fabrics on the side of the screen weren’t clear. There are just far too many things for a customer to look at, which often leads to frustration and then abandonment of the design. But, at the same time, there are only three different shoe options to customize, not one of which I was exactly thrilled about.

The actual idea for the website is a little odd. Clearly Puma was trying to think out of the box on this one, and that they certainly did. But there is a very obvious disconnect between a Mongolian BBQ and Puma shoes. They abandoned the sporty feel that most people who are probably actually customizing their shoes appreciate. For those who are purchasing their shoes based solely on fashion trends, it may work. Nike appeals to both the sporty people of the world and the fashionistas.

Puma has also failed to integrate their other products with the Mongolian Shoe BBQ website. This is a free opportunity to promote all of their products, not just the customizable shoes. They pretty much missed the boat on that one. They have also missed out on a number of other marketing ideas. Nike and Puma both allow consumers to take the shoe they designed and buy the sneakers. Puma, unlike Nike, hasn’t realized the other wonderful opportunities for brand extensions. Nike allows users to take their shoe design and make it their background on their computer or share it on Facebook.

Overall, I think we can all agree that Nike has just blown Puma’s Internet shoe customization out of the water. Not only is it easier to use, but it appeals to more people, is less overwhelming with choices and has other product extensions. But, are we really surprised? There is a reason why Nike dominates this market and continues to be successful.

Thursday, December 13, 2007

Semester Conclusion

Social networking is a concept that has quickly begun to work its way into the lives of people across the world. Because of its usefulness on so many different levels, many different types of people can utilize social networking for many different reasons. Most commonly, social networking sites are used for personal motives. However, people are starting to realize the diversity of social networking and its potential uses for much more.

Connecting people is essentially the goal of any social networking site. Anyone from anywhere can choose whatever site they wish, and immediately begin chatting, sharing material and making friends. Typically, it has been students and younger adults that take advantage of social networking. But we are seeing more and more demographically and psychographically different people joining. For example, sites like SagaZone.com for adults 50 years of age and older, are welcoming an entirely new group of people to social networking. It’s a great way for parents and grandparents to keep in touch with family, former colleagues and friends on a more frequent basis.

The latest trend in social networking, specialized sites, also welcomes new users. Previously, some people may not have joined a social network because they were not sure of its benefits or uses. But, with the concept of specialization in one single topic, people can more easily see exactly what these sites are for. Among these specialized networking sites is Zolve.com for property and estate realtors, Sawxheads.com for Boston Red Sox fans, and a site designed for Xbox live users.

However, with so many new people getting online and joining a social network, safety and security become an issue. Most sites promise their users that they are constantly monitoring the site and making sure that any explicit or inappropriate content is removed. However, many sites aren’t keeping their word, and the risk of running into material like this is growing. The lack of supervision also makes social networks a playground for online predators, and a very unsafe place for children and young adults.

The solution? People need to be responsible for themselves when joining a social network. Like we saw in the case of the British pro tennis players, putting up any compromising material of yourself is not the smartest decision, and can get you into trouble. Stay safe by keeping any of this type of material off of the Internet. Also, it seems like people today are more concerned with the number of friends they have, instead of the quality of their friends. Another way to stay safe on social networking sites is to remember that just because someone wants to be your friend, doesn’t mean you have to accept the request. Okaying a friendship with someone on a social networking site is Okaying a friendship with a complete stranger. Without knowing exactly who the person is, means you cannot fully trust them, and doing so may result in an unfortunate event.

With the popularity of joining a social network continuously growing, so is the number of networking sites. Company after company sees this trend as an opportunity for them to get their foot in the door and eventually grow to be a successful networking site such as MySpace, Facebook or Bebo. However, what most of these companies don’t realize is that with these three sites leading the social networking field, there is realistically a very small chance for them to actually become successful. Each new site that is launched claims that it has something new to offer users. Most times they don’t. Yahoo! is a great example of trying to keep up with the social networking phenomenon. Yahoo! has introduced two new social networking sites, Mash.com and Kickstart.com, both of which are not doing very well. There are just too many different companies trying to dive into a very shallow pool, and failure is likely.

But how are the sites that have so far been successful, staying that way? The introduction of personalized ads onto the Facebook social network is a new concept that is hopefully going to keep the site at the top of the competition. It is a way to receive advertising dollars from large corporations such as Coca-Cola, Sony and Microsoft but stay in the advertising safe zone, meaning that users won’t get annoyed with advertisements. Facebook predicts the strategy to be extremely successful. Bebo has taken a different route to innovation, by partnering with major media companies who will add music and videos to the site.

Even though growth is supposed to trail off in the year 2012, technologies surrounding social networking are still advancing. Spinvox has come out with a social network that allows users to take advantage of voice technologies. And, a company called Six Apart has come out with a standardized networking site that any company can easily implement to help employees start networking.

Social networking relates to audience research in that it is a new and very improved way of finding out exactly what consumers want. Whereas before, marketers could only look at consumers’ buying patterns, behaviors and what surveys said, they can now go to the audience directly. Network users are publicizing their interests, wants and needs. Companies can then take this information and use it to better market their products and services to the target audience.

Social networking will undoubtedly affect me in my search for a job as well. With the establishment of sites like LinkedIn.com, I have already begun to network with professionals in the public relations and communications field. It is a great way to connect with the people that have the job that I want in the future. I can get my name out there and hopefully provoke some interest in my abilities among potential employers.

Monday, November 26, 2007

Xbox Gamers Soon to Get Their Own Social Network

Microsoft has created a new feature for the Xbox 360 update, available on December 4th. Xbox Live users will soon have their very own social network service.

Currently, Xbox Live allows users to play games online with other people. The gaming system has always had a buddy list type of feature, but new changes reflect the feel of a social network. Ars Technica says that Microsoft is headed in a MySpace direction, but with a slightly different twist. Xbox Online game collaboration already includes voice chat, so profile pages and the other typical social networking features will not be used. However, Microsoft hopes that the addition of a network to make friends and share insights will open up new gaming opportunities.

Although I am not exactly sure how a social network will be successfully incorporated into a gaming system, I am still anxious to learn more about it. I think the concept has a lot of potential, and could open many doors for Xbox Live users. I think this is a new, trendy way to encourage gamers to make friends and work with other people. But I do wonder if Xbox Live members see the benefits in this so-called social network, and if they will actually take advantage of the new feature.

This post is in response to an article found at http://www.techcrunch.com/2007/11/26/microsoft-brings-social-networking-style-feature-to-the-xbox-360/

Friday, November 16, 2007

Bebo Takes a Step to Stay in the Game

Bebo, currently the third most popular social networking site is trying to stay in the game with industry leaders like MySpace and Facebook. The plan? Partnering with major media companies, who will add music and videos to the site for free, and keep any generated revenue.

Revealed this past Tuesday, Bebo says that by adding popular entertainment, users can share their favorites with network friends, which will hopefully encourage audience growth, as well as keep audience’s attention for longer. And, with numerous partnerships with multimillion dollar media corporations already in the works, Bebo has high hopes. Launch partners include Viacom Inc.’s MTV, CBS Corp., Walt Disney Co.’s ESPN, Yahoo! Inc., Sony Pictures Entertainment Co.’s Crackle, and JibJab Media Inc.

Bebo is the leading social networking site in Britain, but has not yet distinguished itself as the top network in the US. Recent figures show MySpace still dominating the market with 107 million worldwide visitors in September, followed by Facebook with 73.5 million and Bebo at 19.7 million. (ComScore Inc.)

Steps have already been taken to introduce media to Bebo users with the online drama series called “KateModern” launched this year. This original programming was to help users make connections through entertainment, and is proving to be successful move, as an estimated 25 million people have tuned in to the daily four-minute episodes. More shows are to follow, including “Sofia’s Diary,” and reality series “The Gap Year”.

Bebo President Joanna Shields says, “Social networking for us was act one. Act two is using user-generated content, dramas created for Bebo and content from the majors to engage users. Forging strong ties with major media players was the logical next step.


Users will be able to post their favorite music and video clips to their profile page and share them with network friends. However, is Bebo actually the first to come up with this idea? I know from personal experience that Facebook already has music and video sharing applications. I think the difference may be found in the partnerships that Bebo is making, and in the agreements made between Bebo and media companies.

Taking part in Bebo’s media outreach plan is a good move for entertainment companies. These large corporations are always trying to think of new tactics, enter new markets, and take advantage of new opportunities. This is a way for them to tap into a new audience, and still stay in complete control of their materials, while still keeping100% of the profit.

This post is in response to the article found at http://www.latimes.com/business/la-fi-bebo14nov14,1,6593801.story?coll=la-headlines-business

Wednesday, November 14, 2007

Social Networking in a Box

Six Apart has just revealed a solution to implement a social network for any company that is looking for a way to jump on the social networking bandwagon. Movable Type Community Solution (MTCS) is a standardized networking site for individual companies that are looking for a quick way to set up a social networking site for employees as well as customers.

Six Apart, also the creator of Movable Type and Typepad, says that MTCS is “a complete, out-of-the-box social media solution that enables the quick and easy deployment of online communities.” Though it is not free, I’m sure commercial users will be more than willing to pay the price if it means they can finally participate in the social networking craze.

There have been previous attempts at selling a pre-packaged social network, including Ning, a program that allows you to build a custom social network by first picking from a selection of pre-built pages.


The development of MTCS is a good way for companies to install simple, community applications to encourage relationship building and feedback. However, the idea that one size fits all is questionable. Most social networkers choose the sites that they belong to based on a few unique attributes. Maybe one member really likes the game applications, while another user likes the ebay-like feature. There are things about each social network that make it original, and therefore ensue the feeling of uniqueness and exclusiveness in its members. With a solution like MTCS, users probably won’t receive anything special in the network. They will only receive standard options and applications.

This post is in response to the article found at http://blog.wired.com/monkeybites/2007/11/six-apart-revea.html

Friday, November 9, 2007

If at first you don’t succeed, try, try…and try, again

Yahoo! launches yet another social networking site, this time for college students who are trying to get a start in the professional world. Kickstart promises users a happy medium between more lax networks like Facebook and uptight, professional networks like LinkedIn. The launch comes after two previous attempts at a social networking site including Yahoo!360 and Mash, which is still in beta testing.

Kickstart is coming into the already saturated field of social networking, claiming that other sites like Facebook and MySpace don’t give recent college alums any help in entering the work force. Yahoo! says that Kickstart “is a professional network with a distinct purpose, as current college students and recent grads can use the service to find internships or jobs, or even garner career advice if they need it”.

Setting up a profile is pretty straightforward, but when it is completed, it looks more like a resume than a profile. Users are advised to keep their profile strictly professional, which means no posting drunken pictures of yourself and friends. Take a look at an example of a profile.

Right now Kickstart is only in “preview mode”, but judging so far, many are saying it needs a few fix ups. For starters, when adding a job, current or previous, to your profile, the length of time at which you worked is designated only in years. Most college students have only had serious jobs for a few months at a time.

But will college students and alum even join the network? Currently, Yahoo! is trying to lure professionals to sign up, because without them, joining the network is completely pointless. Students are looking to meet professionals, not other students in the same position they are. Yahoo! says that they will donate $25,000 to the university or college that has the most alumni sign up.

Personally, I think at this point Yahoo! is just trying to do whatever it takes to get a piece of the market. Why would college alumni need three different networks? They need one for their friends and family, and one for their professional life. Sounds to me like using Facebook and TEXTLinkedIn should be just fine. It’s a good thing that Yahoo! isn’t afraid to fail, because the introduction of Kickstart could very well be their third.

This post is in response to the article found at http://blogs.pcworld.com/staffblog/archives/005867.html

Wednesday, November 7, 2007

Personalized Advertising Hits Social Networks

Facebook has announced today that they have created a new advertising campaign called FacebookAds. Among the 60 advertisers already signed up, include global brand giants like Microsoft, Coca-Cola, Sony and Blockbuster. FacebookAds is a new, strategic way to target the interests of users on a more personal level.

Founder and CEO of Facebook, Mark Zuckerberg, says that "Social actions are powerful because they act as trusted referrals and reinforce the fact that people influence people”. He continued, "It's no longer just about messages that are broadcasted out by companies, but increasingly about information that is shared between friends. So we set out to use these social actions to build a new kind of ad system."

FacebookAds will allow companies to create their own Facebook profile page and use it as a spring board to launch brand stamped viral apps like games and e-commerce apps. Users will only be exposed to ads that come from the applications their friends are using. The most important feature of FacebookAds for participating companies is that users cannot avoid the ads, which will appear the in their news feed.



There is controversy surrounding the introduction of this new campaign. Some are saying that tailoring ads specifically to users based on their interests is a betrayal of trust. Furthermore, the Federal Trade Commission is concerned that advertisers may have access to too much information about people’s activities.

I think that Facebook has come up with an amazing opportunity for interested companies. Unlike television, radio, and print ads today, advertising on social networks disables the option of skipping advertisements. Users will be forced to see the ads because they will show up as soon as users log in, and, until they click to go to another page, they will see it continually.

For users, I think this is a campaign of only minimal concern. There is no hurt in seeing an ad every once in a while showing up in your newsfeed. However, there is a potential problem that in the future, users will not see an ad every once in a while, but instead they will be bombarded with ads whenever they logon. Facebook needs to ensure users that they will keep a watchful eye on the amount of advertisements we are seeing. If too may ads start appearing, people may get frustrated with the network, and discontinue their membership all together.

This post is in response to an article found at http://www.bigmouthmedia.com/live/articles/social-networking-dont-you-mean-social-advertisi.asp/4215/
 
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