Last Blog: Reflections

Developing a persona and allowing it to evolve

When my group settled on affluent dog lovers as our persona, I immediately conjured images of dog owners like Paris Hilton or Parker Posey's character in the movie Best in Show. The idea of the crazy cat or dog lady is pervasive in our culture, and I had to combat some of those stereotypes when approaching our persona. I had dealt with market segmentation and other forms of consumer grouping in previous classes, but prior to this class, I had never worked with personas. In working with Sam and Buck, our persona for the project, I found that the persona approach offered many advantages over a traditional market segmentation. Firstly, the persona made for a far more immersive experience. Market segmentation with traditional methods felt very one dimensional compared to the rich personality developed with the persona approach. Spending time on seeming unimportant details, like the character narrative seemed pointless when we first began the process of creating our persona. However, after working with Sam and Buck over an entire semester I can definitely see the advantage of having a fully developed personality. Because Sam and Buck were so extensively developed, we, as a group were able to better think like Sam and Buck, which helped us greatly in our brainstorming sessions and creating our first prototypes.

The importance of multiple approaches in research

Ethnocentric/Generative methods of research were not something that I was very familiar with before this class. Through the project I gained a better understanding of how to implement generative research methods and the benefits of these methods. For our project, we implemented in home observations and interviews. These experiences assisted our group in understanding how our subjects' dogs were integrated into their lives and how we might be able to help them further integrate their dogs into their already busy schedule. The generative method helped us to have more dynamic conversations with our interviewees. Instead of just asking questions about where their dog slept or ate, we asked them to show us the areas used by their dogs. This helped to inspire new ideas like our doggie pantry and doggie living space. These are things that we might not have thought out had we not made in-home observations. It is became apparent that it is important to utilize multiple methods when doing research. In our second phase of research, we implemented a more traditional approach to assess some of our product features. The first things to go were the doggie living areas and doggie pantries. While in home observations can be very helpful, they need to be backed up with other evidence and research. Apparently people are just not ready for the doggie pantry.

Improving for next year

I'm the type that enjoys a little structure, so if I had a request/complaint I'd like more structure. At the same time though, I understand that the lack of structure is one things that separates this project from other projects that I have done in previous classes. I also enjoyed the creativity that the lack of structure provided and this was something that was felt by my entire group.

Reactions and Reflections

Initially, I felt some frustration with the project. It felt as if we were not making much progress and that we didn't really know where we were supposed to be going. After that initial stage though, things moved very quickly and we soon found our focus. Part of what helped us find our focus was the class updates. It was always very helpful to see what other groups were doing, and get feedback about our group's progress. As a group, we functioned very well together. Group meeting were always exceedingly fun and there were never any real issues or problems.

Well, that's it. It has been a pleasure blogging for this class. I thoroughly enjoyed this class and this project.

The end.

Big Brother: Walmart

Given the enormous amount of data that Walmart captures, do you think they have been successful at converting into an experience that serves as a competitive advantage for them?

There is no doubt that Walmart knows how to manage their inventory based around customer habits. Whether it is sending sending trucks of strawberry Pop-tarts and six packs to hurricane threatened areas, or knowing to put the milk next to the bananas, Walmart has been able to use their enormous wealth of data to their advantage. However, I do not necessarily feel that these aren't things that other companies can't or aren't already doing just as well. Consider Target and Amazon, if you can't tell from my previous posts, these are two of my favorite companies. Target with sales revenue of “just” 65 billion dollars is tiny when you compare that to Walmart's 400 billion dollars in revenue. With all this extra sales data, Walmart probably does have some competitive advantage. They get to see a huge slice of the market in great detail. However, I don't feel that this advantage is particularly significant. All stored employ POS systems that capture every sale and the items in the cart. While Walmart has more of this data than other companies, other companies have other sources, Target has a proprietary credit card that is quite popular and will likely grow in popularity with the recently added discount (5% discount for purchases at Target with their credit card). Cards like this, and other types of loyalty cards provide a greater wealth of data and help to make up for any disadvantage caused by having less data. What we have is a quality vs quantity situation. Walmart may be the big player, but the rest can still keep up.

- What do you think about the privacy issues associated with all of that data and the amount of personally identifiable data they are able to capture. Does it bother you? Do you trust them with it?

I am very concerned about privacy issues. The amount of data readily available for purchase is stunning. Someone could very easily find enough information through various sources to fraudulently open a credit or steal an identity. Again though, this isn't a situation that Walmart is in alone. All companies that we buy from are collecting data about us, and as a general statement, I don't really trust any of them with this information. The problem here is, what can you do? If you want to cash your payroll check at Walmart and the cashier asks for your SS and driver's license number are you going to say no? Moreover, and I hate to stereotype, but for many Walmart shoppers, this is their only option to cash that check because they may not have a bank account. What we really need is comprehensive legislation that states what information can be collected, for what purpose collected information can be used, how (or if) the information can be distributed, and how long the information can be kept.

- What impact do you think they are having on their suppliers - making them better and more efficient or 

driving them too hard and reducing their profitability. Again, try to keep this in the context of technology.

Walmart's sheer size has a huge impact on suppliers. Many large like P&G companies make huge percentages of their sales to Walmart. So when Walmart says “jump” even a huge company like P&G says “how high,” and when Walmart says that they want RFID chips on individual units and they want the manufacturers to take that in their margins, all ust bow down to the sheer size of Walmart. One hand, Walmart is putting the market forward in a good way. It is hard to argue, if you ignore the possible privacy complaints that RFID chips will not revolutionize the way we shop and the way companies keep track of inventory. However, Walmart needs to keep in mind that it is sometimes to use a carrot instead of a stick when it comes to enticing suppliers to comply, because eventually on your suppliers can only be an effective strategy for so long.

Target: The Birth of Cool

Lady Gaga stunned the world when she came to the MTV Music Awards in a dress made entirely of raw meat. Her albums create singles like a wildfire, and even dreadful songs like 'Alejandro' went platinum in three countries. Lady Gaga is so influential, Hollywood has taken notice, and it is expected that fashions at this years Oscars, (the annual event where Hollywood gets together to stroke each others egos) will be significantly bolder (perhaps we will see Natalie Portman in a dress made entirely out of dairy products). Whatever Lady does, either in music or in fashion, she draws tremendous press, and today she released an new edition of her latest album exclusively at Target.

(Entertainment Newsweekly Feb. 25, 2011)

Why Target though? With revenues only one fourth the size of the market leader Wal-mart, surely Lady Gaga would have reached a greater audience, if she had decided to go with ole Sam Walton's spawn. Surely Best Buy, which specializes in selling items like music, would have been a more advantageous place to release an exclusive album.

The reason that I believe Lady Gaga chose Target over other options is fairly simple. Target is cool.

Target has created a a sizable and profitable retail niche by offering “cheap chic” fashion forward apparel and home décor products (On Target, Alice Z. Cuneo, Avertising Age 2000). Their exclusive lines of apparel and housewares from famous designers like Alexander McQueen have allowed Target to differentiate itself from other mass retailers like Wal-mart and K-Mart. Further, Target's products resonate with both style conscious consumers and value conscious consumers (Morningstar company report).

Wal-mart has not been blind to these developments. They have seen their sales growth slow to a crawl. Just recently, Goldman Sachs lowered it's target price on neutral rated Wal-Mart shares. Target on the other hand, while struggling like all other retailers has continued to be seen in a favorable light and has a buy rating from Goldman Sachs (Goldman Sachs Lowers Price Target on Wal-Mart (WMT), Sees Company's Pain As Target's (TGT) Gain, StreetInsider.com)

Wal-mart's jealousy over Target's successes can be seen in some of their recent strategies. In an attempt to mimic Target, Wal-mart launched exclusive clothing lines and cleaned up their stores in an effort to However, Wal-mart's “Metro 7” line of clothing flopped and that year they saw their same-stare sale rise only 0.5% down from their predicted 4%. What went wrong? According to veteran retail consultant Howard Davidowitz, "Wal-Mart is not cool." (http://money.cnn.com/2006/10/30/news/companies/walmart_setback/index.htm ).

Take a look.  

I'll let you decide if Wal-mart is cool.

So, my question is: How did Target get so “cool”?

Target wasn't always the cool brand. They were in the recent past, just another mass retailer. At some point though, Target executives choose this path, and I want to figure out how they made that change.

So, did they manage this transition? Here are some thoughts and questions:

• Does Target's success have to do with a cult following? Given that Target (or Tar-zhay as said with a faux French accent) has developed such a devoted following, how can Target continue promote customer loyalty in a time economic recession?
• Why did Wal-mart's attempt at “cool” fail?
• Is Target cool because Wal-mart isn't? (Is Target the Anti-Wal-mart?)
• What about Target's customer experience that keeps people coming back?
• How does a company change their personality from uncool to cool?
• Finally, what is preventing Wal-mart from making another attempt at seizing Target's “cheap chic” market segment which has proven to be profitable? 

Why I Buy

When I read the prompt for this blog I was very excited. This was a chance to rant and rave about the terrible customer service I received from HP when my computer literally broke in half or complain about Delta for leaving my family and I out on the tarmac for hours after an aborted take-off. I find though that it is somewhat healthier, for both mind and soul, to focus on the positives (and boycott the aforementioned brands).

Creating a consumer experience is all about producing the conditions for repeat purchases. One company that shines for me is Amazon. As I stated in my last blog post, I rarely like to shop at physical stores. Sometimes it is necessary see and feel the purchases, but for everything else, there is MasterCard Amazon.

Why Buy From Amazon?

About a year ago I got an email from Amazon suggesting that I become a member of Amazon Prime. For those of you not in the know, Amazon Prime membership gives customers free two day shipping at a cost of $80 per year. At that time I ordered from Amazon maybe 4-6 times a year, so as a poor college student, this service didn't appeal to me. The membership fee was far too high, and I wasn't ordering often enough to see real savings. However, the email I received was offering Amazon Prime membership for free.

Free always gets my attention, but also draws my skepticism, so I headed over to Amazon to read the fine print. This offer; however, was the real McCoy. Amazon was really giving away free memberships to Amazon Prime to college students.

I immediately bought something.

In fact because Amazon keeps track of my purchases (a little Big Brother-y, but hey, you have to pay some price for convenience, right?) I know that the year before a joined Amazon Prime I made 5 purchases. In the following year, I made 24. That number jumps to a staggering 50 if you include digital downloads of music.

Not only did I begin to make more purchases from Amazon, I also began to sell via Amazon. Fed up with the buy back prices offered at the Co-op, ($50 for a book I purchased for nearly $200) I decided to try my hand at selling them on my own on Amazon Marketplace. The whole experience was incredibly easy. Amazon Marketplace allows you create a seller profile and post the items for sale. All you need to have is the ISBN code from your text book and Amazon will create a listing for that book. When some one orders from you, Amazon sends you an email and you log on to get the mailing information. Payment was what I was most worried about, but was actually the easiest part of the whole experience. Amazon direct deposits the money to a bank account of your choosing. The whole experience went seamlessly. I got a better price for textbook than I could have selling it to the Co-op, and Amazon got a cut of the sales price.

Clearly Amazon is doing something right seeing as my usage of their services has skyrocketed. A big part for the reason that my buying habits have changed is Amazon Prime. The idea that you are part of this “exclusive club” appeals to many people. I realize of course that Amazon Prime is hardly exclusive, but it FEELS nice that that I am receiving things that the general public doesn't. When you log into Amazon Prime, the header that normal reads “Amazon” changes to read “Amazon Prime.” A very trivial change admittedly, but it helps create a feeling of loyalty and general goodwill towards Amazon. When I am shopping online, Amazon is always one of the first places I look. I want to shop there, because I am part of the club.

Another aspect of Amazon that appeals to me is the prices and savings that I appear to get. This appeals to my intellectual side which wants to THINK that I am getting the best deal possible. On most Amazon product listings, Amazon shows you the list price, and then their price with the percentage you are saving in big red letters. It makes that purchase all more appealing to know that you are saving 33% off list price. The free shipping that comes with Amazon Prime membership also appeals price sensitive personality. Why not order something if you are getting 33% off list price and the shipping is free? I'm surely saving tons of money... right? Well, I guess you have to question if you are truly saving money if you are making a purchase that you otherwise wouldn't without the savings... That is a different question though. What matters is I think that I am getting a good deal.

Empathy Map

1. What do you think and feel?

What really counts?

Friends, Family, and Happiness

I was tempted to say “success” here, but success it not something that is easily defined. Moreover, I could certainly feel fulfilled without ever being a big shot business person; however, the same could not be said if I had not friends or family.

Major preoccupations?

School.

I'm a fourth year Integrated MPA, so I have one full year to go before I graduate, but after that, real life starts. Lots of my peer are thinking about grad school, but I don't have that buffer. I'm ready to be a full fledged adult and be financially independent. I've seen the financial pitfalls (credit card debit, etc.) that my parents' generation has fallen into, and I am resolved to avoid that.

Worries and aspirations?

Real life.

Mostly worries right now. I touched on this previously, but, like most people my age, or in my situation, I'm worried that I won't find a job, or worse I won't like the job once I have it. Several of my close friends are getting married. I certainly want to do that eventually, but not when I'm still so young! I need time to be completely independent before I go and make a lifelong commitment to be with someone.

2. What do you see?

Environment?

Ever changing.

Technology keeps moving forward, and I like to be at the forefront. It is an exciting time to be alive and young. I'm sure every generation feels this way, but I feel that we are at a pivotal point in our world's history. UT's motto/slogan is “What starts here changes the world.” Hopefully I can be a part of that.

Friends?

Only a handful of really good ones, but my network is large.

It is easier than ever to keep track of everyone I know. Facebook rules all, at least until something better comes along. My really good friends I keep track of beyond just Facebook and other social media. It is still important for a real life connection with people I really care about.

What the market offers?

More selection than ever.

More selection and easier to shop. I hate going the mall. Too crowded, too noisy, too many small children. If I can order it online and avoid making a trip great. Also, I can get better prices online. All around a better deal as far as I'm concerned.

3. What do you say and do?

Attitude in public?

Straight-forward and relaxed.

My life is hectic and chaotic, so when I can I like to relax. I'd rather stay home with some good friends and enjoy their company than go out on the town

Appearance?

Casual.

I'm a t-shirt and jeans kind of guy. That being said, my t-shirts and jeans are reasonably nice. The idea is to look good without looking like you spent hours in front of the mirror. I like to dress up occasionally, but I am more comfortable in something more low key.

Behavior towards others?

Reserved.

I'm not quick to approach and befriend people, but I am always very friendly and considerate. I'm always eager to help and am involved with several charitable organizations that assist those in need.

4. What do you hear?

What friends say?

Anything and everything.

I've made a point to surround myself with many kinds of people. They all have their own opinions, and they all make them known. I don't always agree with them, but I always want to hear what they have to say.

What bosses say?

Bosses?

Never really had one. I guess I'll find out soon.

What influencers say?

The people who influence me the most are my friends and family. I really value what the have to say. Their opinions greatly influence the things I do, purchase, feel, etc.

5. What are your pain points?

Fears?

Failure.

I'm entering a new and uncertain area of my life. A lot of people think that I am going to go and do great things. I'd hate to let them down.

Obstacles?

Over-thinking everything.

I am a worrier. If it could happen, I've thought about it, even if the probability of something going wrong is minuscule. I need to learn to relax and understand that some things are out of my control.

6. What do you hope to gain?

Wants/needs?

I hope to become a better person. There is always room for personal improvement, and I am far from perfect. I'd love to become more athletic, since starting college that has really fallen by the wayside.

Measures of success?

Happiness is the real measure of success as far concerned. If I am happy doing what I'm doing, no matter what it is, I consider that to be a success.

Obstacles?

Myself.

I can achieve what I want to achieve. I just have to stay focused and on target.

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