supply

Social Media Is Changing How Supply And Demand Works For Big Brands

Source: http://www.businessinsider.com/social-media-manufacturing-2012-12

Burberry Milan Fashion Week Menswear Fall Winter 2012 2013 Collection Runway

Many companies see social media as just another marketing and communications tool. A particularly effective one maybe, but just another of many.

According to Erich Joachimsthaler, founder and CEO of Vivaldi Partners, they’re missing out on the biggest source of value from these platforms. In a recent report, he outlines how brands can use social media to change their entire business, not just their marketing.

“Where I see the biggest opportunity is to think about your entire business model. There’s so much of this social information that is unstructured information, and consumers make 75 percent of it,” Joachimsthaler says. “If you want to think about your business, if you want to create value and competitive advantage, it’s about thinking about that information and penetrating it at every step of your value chain.”

One of the best examples of this, which Joachimsthaler has studied in depth, is Burberry.

The first thing that’s allowed them to change their business is the sheer size of their social reach. “Burberry has about 15 million — and that’s growing rapidly — Facebook likes. This is an astounding figure,” Joachimsthaler says. “This is astounding because even Nike is not as strong, and Nike is a $15-18 billion dollar company. Burberry is at about $3 billion. So it’s a massive difference, the two companies don’t compare.”

They built that following by offering something useful. People on Facebo! ok can s ee Burberry fashion shows before the celebrities who actually sit in front of the catwalk.

But what’s truly innovative is what they do with those likes.

“What Burberry does is, it has made those videos shoppable. You can click on the particular garment and you can basically make an order on the spot. So Burberry can collate the orders from 15 million people. They haven’t manufactured the product yet in China, but they have taken the orders, they know exactly how many people have ordered what,” Joachimsthaler says. “They already have my money in the bank. 15 million times $200; that’s a lot of money in the bank. When they have the orders, they can then send the order to China, manufacture it, and within two weeks they can either deliver it to your home, or you can have it delivered to a store and you can buy additional garments.”

For a taste-driven and occasionally fickle industry, this saves a tremendous amount of money. “This changes the entire value chain,” Joachimsthaler says. “The fashion business is fraught with forecasting. You forecast what will be bought in the next year, you need to produce them, manufacture them in China, there are inventory problems, there are logistics problems, then you put it in the store, the thing doesn’t sell, if it doesn’t sell you have to send it to the outlet store and mark it down.

Burberry avoids a great deal of that.

There’s huge potential here that’s yet to be realized, and it could be a game-changer for the industry. We’ve only seen the beginning, Joachimsthaler argues. Someday, companies like Burberry could operate with a fraction of their inventory, and never have to mark anything down.

It’s a tremendous innovation in operations, and one that will have a large impact going forward, possibly even beyond the fashion industry.

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Monday, December 10th, 2012 news No Comments

Office and School Supplies

Source: http://blog.compete.com/2012/07/29/sunday-series-office-and-school-supplies/

Colored Pencils

Image from: Colored Pencils / Shutterstock

I love office supplies. No one should ever leave me alone in a supply closet of office supplies unless they want to return to the sight of me hoarding fresh notebooks and pens. This Sunday Series I decided to take a look at June’s data for the industry profile of Shopping>Office and School Supplies, and I noticed that a few of the biggest movers were related to ink supplies.  It looks like offices aren’t feeling the drowsiness of summer and are keeping their ink supplies stocked and ready. Next month I’ll check back in to see if the impending school year has shifted the top 10, or if ink is still reigning supreme.

10 Gains in Monthly Unique Visitors for Office Supplies

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Wednesday, August 1st, 2012 news No Comments

Amazon Appears To Be Inflating The List Prices Of Some Discounted Items (AMZN)

Source: http://www.businessinsider.com/amazon-appears-to-be-inflating-the-list-prices-of-some-discounted-items-2012-2

 

Amazon Weird Pricing

You know how when you shop on Amazon there is a price and a then a “list price” which is usually much higher?

The effect is that you feel like you’re getting a big discount shopping on Amazon.

It turns out Amazon might be publishing list prices that are too high.

Mouse Print first noticed the problem with an array of general consumer products such as Kraft’s Mac & Cheese and a 100-count box of Splenda.

As if this afternoon, most of these prices have been fixed, except for a ton of pet food items.

Take for example the dog treats you see above. The retail value of one Merrick Flossies is approximately $4, making a 50-count supply valued at no more than $200. Yet Amazon claims the list price stands at a whopping $422.89, more than doubled what it should cost.

Click here to see more examples of Amazon’s wacky prices >

We tried to contact Amazon for comments, but did not receive a response.

The incident reminds us of last year when Amazon listed a seemingly normal book about flies for $23,698,655.93. Biologist Michael Eisen blogged about the unrealistic selling price, and documented how Amazon’s price for the book The Making of a Fly constantly went up day after another.

Here’s what happened: A professor required this book for a class and students naturally flocked to Amazon to purchase the text. Eventually, only two sellers still had the product available.

Because the book quickly became an exclusive, hot ticket item, Amazon’s algorithm for retailers to competitively price their product catapulted the retail value to more than $23 million.

We’re not sure if this is the same situation with the pet food offerings on the site, but it seems hard to believe the world is running out of doggie treats.

Deli Cat Dry Cat Food

Ok, we know having pets can be expensive but you can’t fool us, Amazon.

Higgins Celestial Blend Bird Food

Who can resist 89 percent off retail list price? Only ten left in stock!

Redbarn Filled Bone – Peanut Butter

Dog foods are getting so fancy these days, but at $6.70, the bone’s a steal.

 

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Wednesday, February 29th, 2012 news No Comments

37 million iPhones, 15.43 million iPads, 5.2 million Macs, 15.4 million iPods

Source: http://www.engadget.com/2012/01/24/apple-q1-2012-iphone-ipad-ipod-mac-hardware-sales/

We touched on the numbers in our report on Apple’s Q1 earnings, but the company’s throwing out a lot of “record” figures so we thought we’d take a moment to focus on just how its hardware sales stack up. The standout number is, of course, the 37.04 million iPhones sold during the quarter, which is up 128 percent from the same quarter a year ago (and up from 17 million in the previous quarter, a jump of 117 percent). That notably puts Apple back ahead of Samsung, which sold a total of 35 million smartphones in its most recent quarter. And as if that wasn’t enough, Apple’s Tim Cook also said on the company’s earnings call that it could have sold even more if it had more supply.

iPad sales also set a new record with 15.43 million units sold during the quarter, which is a 111 percent jump from the 7.3 million sold a year ago, and a 39 percent increase from the 11.1 million moved in Q4 2011. Once again, however, iPods are the one category that continues to decline in the face of the growth of smartphones. Apple sold a total of 15.4 million iPods — over half of which were iPod touches — which represents a 21 percent decline from the 19.4 million sold a year ago. The holiday shopping season did boost sales considerably from the 6.6 million sold in the previous quarter, though.

Mac sales were also on the upswing, totaling 5.2 million units — a 26 percent increase year-over-year. Breaking things down further, that translates to 1.48 million desktops (including iMac, Mac Mini and Mac Pro), and 3.7 million laptops (including the basic MacBook, MacBook Air and MacBook Pro). As for the company’s “h! obby,” t he Apple TV, it rang up 1.4 million in sales for the quarter, and 2.8 million for the 2011 fiscal year. Fans of charts can get their fix after the break.

Continue reading Apple’s Q1 hardware sales: 37 million iPhones, 15.43 million iPads, 5.2 million Macs, 15.4 million iPods

Apple’s Q1 hardware sales: 37 million iPhones, 15.43 million iPads, 5.2 million Macs, 15.4 million iPods originally appeared on Engadget on Tue, 24 Jan 2012 17:30:00 EDT. Please see our terms for use of feeds.

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Tuesday, January 24th, 2012 news No Comments

Former CP+B Digital Producer is Ready to

Source: http://www.mediabistro.com/agencyspy/boutique-call-former-cpb-digital-producer-is-ready-to-supply_b28129

It’s been a little while since we’ve rolled out a Boutique Call post, but since the category seems somewhat wide open at this point, we’ll let you know that Shaz Sedighzadeh has started up a new operation called The Supply.

Sedighzadeh set up the new shop, which is being dubbed as a “a resource representation entity for digital and creative talent,” following a two-year stint as a digital producer at CP+B, where he helped produce work for Old Navy, Coke Zero and Microsoft Windows. Prior to Crispin, the new entrepreneur spent a few months on the digital production side at Tool of North America.

Want an explanation of what The Supply does? Well, regarding his new operation, here’s a statement from Sedighzadeh, who lives in Denver but shuttles between NY and LA often: “The world of traditional staffing, simply matching keywords on a resume, has been a working model for some time, and may continue to be in some capacity. But in the digital advertising world today, things are shifting way too fast to solely be supported by the standard candidate sourcing methods. Talent specialists and reps now need to think like experienced digital producers and strategists; they need to ‘get it’, knowing what the project/campaign consists of, what type/level of specific talent is needed, matching resources with the timeline/budget, identifying what design aesthetic needs to be applied, whether it’s a job for a vendor or a couple of freelancers, and the list goes on.”

New Career Opportunities Daily: The best jobs in media.


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Monday, January 16th, 2012 news No Comments

Will Google’s Market Cap Pass Microsoft’s This Year? (GOOG, MSFT)

Source: http://www.businessinsider.com/chart-of-the-day-googles-market-cap-has-been-closing-in-on-microsoft-2012-1


Two years ago Apple pulled off an impressive feat: Its market cap surged past Microsoft to become the most valuable company in the tech industry.

Then last year, IBM managed to slip past Microsoft to be more valuable. It’s since fallen back and Microsoft is more valuable.

Who will it be this year? Well, it could be Google. The search company is just $19 billion behind Microsoft. All it would take is Google’s stock going on a tear, and Microsoft’s fading or sitting still.

When (or if) it happens, you know Microsoft CEO Steve Ballmer is going to freak out. Don’t forget, he’s the guy who threw a chair and had a tantrum when Google poached one of his employees.

chart of the day, google and microsoft market cap, jan 5 2012

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Thursday, January 5th, 2012 news No Comments

1024-bit RSA encryption cracked by carefully starving CPU of electricity

Source: http://www.engadget.com/2010/03/09/1024-bit-rsa-encryption-cracked-by-carefully-starving-cpu-of-ele/

Since 1977, RSA public-key encryption has protected privacy and verified authenticity when using computers, gadgets and web browsers around the globe, with only the most brutish of brute force efforts (and 1,500 years of processing time) felling its 768-bit variety earlier this year. Now, three eggheads (or Wolverines, as it were) at the University of Michigan claim they can break it simply by tweaking a device’s power supply. By fluctuating the voltage to the CPU such that it generated a single hardware error per clock cycle, they found that they could cause the server to flip single bits of the private key at a time, allowing them to slowly piece together the password. With a small cluster of 81 Pentium 4 chips and 104 hours of processing time, they were able to successfully hack 1024-bit encryption in OpenSSL on a SPARC-based system, without damaging the computer, leaving a single trace or ending human life as we know it. That’s why they’re presenting a paper at the Design, Automation and Test conference this week in Europe, and that’s why — until RSA hopefully fixes the flaw — you should keep a close eye on your server room’s power supply.

1024-bit RSA encryption cracked by carefully starving CPU of electricity originally appeared on Engadget on Tue, 09 Mar 2010 02:47:00 EST. Please see our terms for use of feeds.

Permalink p://www.theregister.co.uk/2010/03/04/severe_openssl_vulnerability/“>The Register, TechWorld  |  sourceUniversity of Michigan  | Email this | Comments

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Tuesday, March 9th, 2010 news 1 Comment

"We Are Not Prepared"

Source: http://www.popsci.com/technology/article/2010-02/washington-war-games-simulate-crippling-cyber-attack-us

Washington insiders recently sweated out a real-time war game where a cyberattack crippled cell phone service, Internet and even electrical grids across the U.S. The unscripted, dynamic simulation allowed former White House officials and the Bipartisan Policy Center to study the problems that might arise during a real cyberattack emergency, according to Aviation Week’s Ares Defense Blog.

The Policy Center’s vice-president reports “”The general consensus of the panel today was that we are not prepared to deal with these kinds of attacks.”

The nightmarish scenario that unfolded represented a worst-case example. As former secretary of Homeland Security Michael Chertoff noted, many cyberattacks can be stopped if individual cell phone or Internet users simply follow the best practices and use the right tools. Similarly, another participant pointed out that private Internet companies would not sit idly by as a virus ran amok.

A collapse of power across the U.S. also only took place when the simulation brought in factors such as high demand during the summer, a hurricane that had damaged power supply lines, and coordinated bombings that accompanied the cyberattack and subsequent failure of the Internet.

Still, the war game highlighted crucial issues about the government’s own reliance upon communications that might go down during a real-life scenario. One of the biggest problems was how the President ought to respond to a situation that caused damage like warfare but lacked an immediately identifiable foreign adversary. Smaller-scale cyberattacks have already complicated real-world diplomacy, such as the alleged Chinese cyberattacks on Google and other U.S. companies.

Ares Defense Blog questioned a curious missing element from the simulation, in that there was no mention of what happened to phone or Internet service in the rest of the world. Surely a nation that decided to launch cyberattacks against the U.S. would take safeguards to protect its own crucial communication services, which would possibly help U.S. officials narrow down the list of suspects.

Another question seemed more mundane but equally important — how would the government activate the National Guard with cell phone service down?

The Pentagon’s DARPA science lab recently pushed for a “Cyber Genome Program” that could trace digital fingerprints to cyberattack culprits. But identifying whether a cyber attack came from individual civilians, shadowy hacker associations or government cyber-warriors has proven tricky in the meantime.

[via Ares Defense Blog]

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Friday, February 19th, 2010 digital No Comments

the economics of advertising sucks, but it will suck a lot more soon

it’s a simple matter of supply and demand. Let’s do a thought exercise.

1.  eMarketer forecasts that retail e-commerce will grow roughly 10% per year for the next few years. This means that the total “pie” of people spending online will only grow by an average of 10% per year. Note that sales is (or should be) the goal of advertising. So that’s why we are looking at e-commerce sales and comparing it to online advertising because both are completed in the same medium and we can eliminate cross-media uncertainties and breakdown of tracking.

e-commerce

2. online advertising is still exploding with trillions of pageviews per month, thanks to social networks which throw off ungodly numbers of pageviews when people socialize with others. The Compete chart below shows the top social networks which rely on banner advertising (impression-based advertising) to make revenues. Notice that just Facebook and Myspace alone generate 115 BILLION pageviews a month. And if you consider that Facebook shows 3 ads per page, that would be 250+ BILLION impressions per month served by Facebook alone. Furthermore, the rate at which pageviews grow is 250% – 1,000% per year, depending on the site in question.

pageviews

3. In the online medium, we have end-to-end tracking from the advertising (banner impression) through to the sale (e-commerce). The banner is served (impressions); a percent of users click on it to go to a site (click through rate – CTR); a percent of those make their way through the site and end up completing a purchase online (conversion rate). Those users who are looking for something and who are considering buying something will be online searching and researching. Those are the ones who are likely to click on banner ads, compared to others who are online to do something else, like write email, socialize with friends, etc.  And if the purchase is their ultimate end-goal (to make a purchase) we have a farily reliable indicator of the growth in not only such interest but also the completion of the task — namely, e-commerce, which grows at 10%.

4. Now, if the number of people who will click grows that 10%, but the number of advertising impressions grows at a slow 250%, the ratio of clicks to impressions drops dramatically because the denominator is growing 25X faster than the numerator. Serving more ads simply will not get the amount of e-commerce to grow significantly faster. The point of diminishing returns has been reached and passed, so incremental ad impressions are ignored and useless. The number of people who will end up buying will not increase significantly faster. And given the tough economic climate the amount of sales may actually decline before it goes up again.

5. If we generalize this back to all retail commerce, it grows at an EVEN slower pace than ecommerce. When you compare this to the dramatic increase in ad impressions and the shift from traditional channels (TV, print, radio – whose impressions and audience sizes are dwindling) to online channels (portals, news sites, social networks – whose impressions and audience sizes are skyrocketing) again the ratio of sales to available advertising drops dramatically. This is a measure of the effectiveness of advertising (sales  divided by advertising spend). It was already small — it sucked — and it will get dramatically smaller soon — it’ll suck more soon.

A way to mitigate this “sucking” is to peg advertising expenditures on a success metric which is an indicator of user intent — cost per click — versus a traditional indicator of reach and frequency — ad impressions served — which from the above is NOT an indicator of consumers’ intent to purchase.  This way, advertisers only pay when someone clicks. Those “someones” click when they are looking for something and are more likely to complete a purchase than those who don’t click.

“CPC banner advertising” anyone?

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Sunday, March 15th, 2009 digital No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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