Por que as pessoas amam produtos e marcas? O que sustenta esta paixão? Essas foram as duas questões principais feitos pelo Love Index 2016, estudo feito pela Accenture Interactive, em parceria com a Fjord.
Marketers have been slow to adapt to a post-campaign world where the old familiar rules of brand-building are obsolete. To connect with customers today marketers must not only manage channel complexity, they must make the brand more relevant and central to their lives.
Por que as pessoas amam produtos e marcas? O que sustenta esta paixão? Essas foram as duas questões principais feitos pelo Love Index 2016, estudo feito pela Accenture Interactive, em parceria com a Fjord.
Marketers have been slow to adapt to a post-campaign world where the old familiar rules of brand-building are obsolete. To connect with customers today marketers must not only manage channel complexity, they must make the brand more relevant and central to their lives.
A Very British Black Friday: The Real Winners and LosersFITCH
Black Friday is perceived as a frantic one-day sale, when shoppers lose control in the fight for bargains and retailers move mountains of stock to get a good chunk of Christmas sales in the bag.
This study on Black Friday in Britain shows that the reality is somewhat different. While there will always be a small proportion of shoppers willing to fight for a bargain, the majority are sensible human beings happily buying online, at home.
The losers are the retailers. Black Friday discounts drive shoppers to open their wallets earlier, but not necessarily deeper, so the idea that they are a major boost to UK Christmas spending is flawed.
Find out about our predictions for the future of Black Friday in Britain, and our recommendations for what retailers should really be focusing on.
The Store recently held a webinar with FITCH London covering “A Very British Black Friday”. Black Friday is perceived as a frantic one-day sale, when shoppers lose control in the fight for bargains and retailers move mountains of stock to get a good chunk of holiday sales in the bag.
This session was based on FITCH’s report that the Black Friday shopping phenomenon in Britain, shows the reality is somewhat different. EMEA ECD Alasdair Lennox and EMEA Strategy Director Aaron Shields showed the real losers in this game are retailers.
Black Friday discounts have driven shoppers to open their wallets earlier, but not necessarily deeper, so the idea that they are just a major boost to UK holiday spending is flawed. While a small proportion of shoppers will always be willing to fight for a bargain, the majority are sensible shoppers happily buying online, at home.
Lennox and Shields demonstrated that the long-term winners will be brands that shift their mind set from the hard sell to helping consumers to buy, offering a continuous experience online and in-store.
The Best Of Snapshot is an ongoing series prepared by the LHBS Inspiration-Hub team. Snapshots are filled with curated signs and cases related to a certain topic or industry and are selected around the three following areas of our expertise: business development, brand building and customer experience.
This one features signs and cases from the fashion industry, how it is changing and what new marketing efforts it's coming up with.
Experienced MLM attorney, Kevin Thompson, shares his insights and illustrates several factors to help people distinguish between pyramid schemes and legitimate network marketing companies. The article is full of relevant content to help protect the integrity of the industry.
From Simple to Splintered to Seamless: In this new technology-enabled world, how can brand marketers and retailers capture the imagination and retain the loyalty of their customers?
The prevailing digital path to purchase - Triangle Marketing Club 19 Sept 2017John Andrews
The future of marketing lies in the cooperation between humans and artificial intelligence. This presentation was created for the Traigle Marketing Associations gathering on September 19, 2017, and shared the approach being developed by Prevailing Path, an influencer driven AI company focused on shopper marketing. http://www.trianglemarketingclub.com/tmc-speaker-interview-featuring-john-andrews/
Blue Goldfish - Using Technology, Data and Analytics to Drive Both Profits an...Stan Phelps
A blue goldfish is any time a business goes leverages technology, data and analytics to do a "little something extra" to improve the experience for the customer. Are you using info-sense to win profits and prophets?
For information on keynotes and workshops, reach out to speaking@purplegoldfish.com or call 919.360.4702.
Info-sense, Blue Goldfish and $300 Corona'sStan Phelps
Ignite presentation on May 11 in San Diego at the IBM Amplify Conference. Introduces the concept of info-sense and features two examples of Blue Goldfish from Tory Burch and Westpac Bank.
A Very British Black Friday: The Real Winners and LosersFITCH
Black Friday is perceived as a frantic one-day sale, when shoppers lose control in the fight for bargains and retailers move mountains of stock to get a good chunk of Christmas sales in the bag.
This study on Black Friday in Britain shows that the reality is somewhat different. While there will always be a small proportion of shoppers willing to fight for a bargain, the majority are sensible human beings happily buying online, at home.
The losers are the retailers. Black Friday discounts drive shoppers to open their wallets earlier, but not necessarily deeper, so the idea that they are a major boost to UK Christmas spending is flawed.
Find out about our predictions for the future of Black Friday in Britain, and our recommendations for what retailers should really be focusing on.
The Store recently held a webinar with FITCH London covering “A Very British Black Friday”. Black Friday is perceived as a frantic one-day sale, when shoppers lose control in the fight for bargains and retailers move mountains of stock to get a good chunk of holiday sales in the bag.
This session was based on FITCH’s report that the Black Friday shopping phenomenon in Britain, shows the reality is somewhat different. EMEA ECD Alasdair Lennox and EMEA Strategy Director Aaron Shields showed the real losers in this game are retailers.
Black Friday discounts have driven shoppers to open their wallets earlier, but not necessarily deeper, so the idea that they are just a major boost to UK holiday spending is flawed. While a small proportion of shoppers will always be willing to fight for a bargain, the majority are sensible shoppers happily buying online, at home.
Lennox and Shields demonstrated that the long-term winners will be brands that shift their mind set from the hard sell to helping consumers to buy, offering a continuous experience online and in-store.
The Best Of Snapshot is an ongoing series prepared by the LHBS Inspiration-Hub team. Snapshots are filled with curated signs and cases related to a certain topic or industry and are selected around the three following areas of our expertise: business development, brand building and customer experience.
This one features signs and cases from the fashion industry, how it is changing and what new marketing efforts it's coming up with.
Experienced MLM attorney, Kevin Thompson, shares his insights and illustrates several factors to help people distinguish between pyramid schemes and legitimate network marketing companies. The article is full of relevant content to help protect the integrity of the industry.
From Simple to Splintered to Seamless: In this new technology-enabled world, how can brand marketers and retailers capture the imagination and retain the loyalty of their customers?
The prevailing digital path to purchase - Triangle Marketing Club 19 Sept 2017John Andrews
The future of marketing lies in the cooperation between humans and artificial intelligence. This presentation was created for the Traigle Marketing Associations gathering on September 19, 2017, and shared the approach being developed by Prevailing Path, an influencer driven AI company focused on shopper marketing. http://www.trianglemarketingclub.com/tmc-speaker-interview-featuring-john-andrews/
Blue Goldfish - Using Technology, Data and Analytics to Drive Both Profits an...Stan Phelps
A blue goldfish is any time a business goes leverages technology, data and analytics to do a "little something extra" to improve the experience for the customer. Are you using info-sense to win profits and prophets?
For information on keynotes and workshops, reach out to speaking@purplegoldfish.com or call 919.360.4702.
Info-sense, Blue Goldfish and $300 Corona'sStan Phelps
Ignite presentation on May 11 in San Diego at the IBM Amplify Conference. Introduces the concept of info-sense and features two examples of Blue Goldfish from Tory Burch and Westpac Bank.
I wrote this article for SES Magazine under the byline of executive leadership, showing how Groupon and group buying use a business model that works for some, not all.
Extra Credit Question 1The New York Times August 17, 2012M.docxmecklenburgstrelitzh
Extra Credit Question 1
The New York Times August 17, 2012
Merchants and Shoppers Sour on Daily Deal Sites
By STEPHANIE CLIFFORD and CLAIRE CAIN MILLER
As their e-mail in-boxes filled with daily deal offers from Web sites like Groupon, Lea Pische and Edwin Hermawan, a pizzeria waitress and a former lawyer living on the Lower East Side, finally decided to buy one: a discounted Skillshare class on how to start a business.
Their business plan? It was a service that would unsubscribe people from all those daily deal e-mails.
Three months after its introduction, UnsubscribeDeals.com has 7,800 unsubscribers, a number that nearly doubled in the last month. Ms. Pische and Mr. Hermawan tapped into deal fatigue, a malady that has been afflicting the small businesses that offer daily deals and is now hitting consumers too.
Daily deal services — like Groupon, LivingSocial and Google Offers — took off because they seemed to offer something for everyone: small businesses got a novel way to bring new customers in the door, shoppers got a discount and the deal providers got a large cut of every sale.
But signs of deal fatigue are everywhere, raising questions about whether Groupon and its competitors can continue their hyper-growth.
In the last six months of 2011, 798 daily deal sites shut down, according to Daily Deal Media, which researches the industry.
When Groupon reported its second-quarter results this week, it said that active customers — defined as people who purchased a Groupon deal in the last year — grew just 3 percent, a significant slowdown from previous quarter-to-quarter customer growth rates. While traffic to Groupon was higher at the beginning of 2012 than last year, it was down almost 10 percent in May and June from the same months in 2011, according to comScore.
Shares of Groupon have fallen 82 percent since it went public in November, and the company is now worth just $3 billion, half of what Google offered to buy it for in 2010.
Gilt City, a daily deal service owned by Gilt Groupe, laid off employees and closed offices in six cities earlier this year. Google Offers, whose membership has plateaued in some cities, has had to team with 35 other deal providers to supplement its own selection and help other companies reach customers. Facebook and Yelp were quick to jump on the fad, but backed off last year. Groupon is searching for alternative ways to make money, like buying movie tickets, watches and other goods and selling them to shoppers.
“Many of the other competitors have retreated or scaled down ambitions,” said Jordan Rohan, an analyst with Stifel Nicolaus. “There are no real barriers to entry, but there are fairly significant barriers to success.”
One of those barriers is keeping merchants happy. Though small businesses were excited at first about a new way to attract customers in a post-Yellow Pages world, many soon soured on the daily deals. Customers who bought deals overwhelmed the businesses, spent the ba.
Proozy SWOT NotesStrengths
Opportunities
Weaknesses
Threats
Two sites, two brands; daily deals and full-price high end (Yeti, Hydroplast) (need two sites to
get merch from brands.
Affiliate marketing-cost-effective--influencers get commission for driving sales.
18-19 years of building network with buyers for brands and stores (Nordstrom/TJ Maxx)
Making good use of micro-influencers (1,000 - 2,000 followers), local, trusted
Local events program (Hospital, Runs, Tent sale) helping with local awareness.
Gym makes employees happy; partnership with Crossfit; convinced Patagonia, Aloe, Yeti
Respect partners’ desires with unique discount system--use codes and coupons rather than
cutting the price on the website too deeply. Don’t put brands on Amazon.
Move products for partners; allow brands to experiment with new products/test market
Sustainable in this way: sell goods that might otherwise be trashed or burned (H&M)
Alternate channels (warehouse sales too) allow the company to move stock
Low acquisition cost per customer (make $8)
Clear target customer (female 35-54-67%) and data on what she wants (leggings, hoodies,
t-shirts, shoes) always can have/use more (continuity items) wear for sports/home
Strong sales of fashion items in test expansion--Kenneth Cole, Calvin Klein, Hilfiger, Birken-
stock.
Customer loyalty program
Managing quality within this system--hard to know why stores have a surplus or cancel orders
(didn’t pass QA)
Sourcing can fall behind; house all of own inventory; need to find fresh relevant new prod-
ucts--difficult to do/ Getting the amount of stock needed for deals
Inventory turnover ratio--from 4-5 times a year to 3 times
Not enough personalization of targeted ads to new customers
Not much brand awareness locally
Could be better at keeping customers after the first purchase. Most of business comes from
top 20-25% percent of customers; also, once customers have been onthe list for over a year,
they become regular, loyal buyers
Confusion about difference between ‘deals’ page and ‘clearance’ page
Can’t figure out how to get Lululemon on board.
Home state (MN) worst state for brand recognition; mose customers are in the big city; need
to take advantage of closer locations (Midwest)
Need to get deeper data earlier on (give gift cards/promotions; use tracking and cart items)
Money is not unlimited; need to be careful about costs
Group of “mommy buyers” buying mostly for gifts and family now-what do they want for
themselves? Deal hunter moms buy a lot at once (meme with tons of boxes)
Mobile shopping increasing--developing an app as well, but would have to appeal to younger
buyers to take full advantage
Customers want customized, curated content (which Proozy provides some of and would
provide extensively on the app)
West Coast labor is cheap and plentiful; shipping less costly to many buyers in this region (plan
is to become better known in Minnesota, expand to Midwest; also to put a wareho ...
"Though economic times and emerging technologies are prompting consumers to change their buying behaviour, and smart retailers are responding with innovative in-store offerings."
Building brands through social e commerce eTailing India
Social e-commerce is a new, expanding strategy for e-commerce sites. However, it is important to be able to differentiate the two kinds of social e-commerce: One occurs on the e-commerce site itself, usually on a platform managed by the company. Whereas the other, offsite social e-commerce, occurs on social media sites and blogs, often outside of the control of the e-commerce company concerned.
This article presents and discusses the different business models adopted by e-commerce firms. It addresses the
issue of the business model, concerning the revenue-generating model, marketing-related costs, logistical
problems, risk of fraud and the demand for investment in technology. Some of the models are profitable and most
are not. The world is experiencing a sharp increase in this sale channel, but many operations are still losing a lot
of money
Understanding the Different Kinds of Beef in the MarketplaceMark Moreno
The U.S. beef industry offers products that appeal to potential
customers. It accomplishes this through fresh beef identified
by different USDA quality grades (Prime, Choice and Select),
company brands and production methods (conventional, natural,
grass-finished and organic).
The taste, texture, tenderness and other properties of products
carrying these designations can vary, and marketers may
capitalize on the attributes that objectively describe their
products and their production methods. That’s the nature
of marketing.
It is important, though, that proponents of these types of
production methods not misrepresent their beef or beef from
animals raised conventionally. To claim conventional beef
is inferior because it contains minute additional quantities
of certain chemicals (e.g., hormones or pesticides), when the
amounts are insignificant and proven safe by science is not
appropriate. To say that grass-finished beef is superior because
it contains minute additional quantities of certain chemicals
(e.g., conjugated linoleic acid or vitamin E) when it is not
reasonably possible to eat enough to improve personal health,
also is not appropriate.
The U.S. beef industry has a wide variety of types of beef from
which consumers can choose, all of which are safe, wholesome
and nutritious. Conventional, natural, grass-finished and organic
beef are defined by production and marketing distinctions, not
by nutritional or safety differences.
http://www.beefresearch.org/CMDocs/BeefResearch/Beef%20Choices.pdf
The Facts; Busting the Grass-fed Beef MythsMark Moreno
Marketing claims that grass-fed beef is healthier or
more eco-friendly are a myth. Grain-fed and grassfed
beef are defined by production, marketing and
taste distinctions, not by nutritional or environmental
differences. The No. 1 reason consumers purchase beef
is taste. Grain-fed beef, like the Certified Angus Beef ®
brand, delivers the superior taste consumers desire.
Memorandum Opinion Sysco US Foods Merger / AcquisitionMark Moreno
Americans eat outside of their homes with incredible frequency. The U.S. Department of Commerce, for instance, recently reported, for the first time since it began tracking such data, that Americans spent more money per month at restaurants and bars than in grocery stores. 1 Of course,
Americans eat out at many other places, too-sports arenas, school and workplace cafeterias, hotels and resorts, hospitals, and nursing homes, just to name a few. The foodservice distribution industry supplies food and related products to all of these locations. Foodservice distribution is
big business. In 2013, the market grew to $231 billion. By some estimates, there are over 16, 000 companies that compete in the foodservice distribution marketplace.
The two largest foodservice distribution companies in the country are Defendants Sysco
Corporation ("Sysco") and US Foods, Inc. ("USF"). Both are primarily "broadline" foodservice distributors. As the name implies, a broadline foodservice distributor sells and delivers a "broad" array of food and related products to just about anywhere food is consumed outside the home.
In 2013, Sysco's broadline sales were over 40 billion and USF's were over 20 billion.
Order Granting Preliminary Injunction Sysco US FoodsMark Moreno
After considering the extensive record in this matter
and the parties’ legal arguments, the court finds that the FTC has carried its burden of showing that a preliminary injunction of the proposed merger between Sysco and US Foods is in the public interest. The FTC has shown that there is a reasonable probability that the proposed merger will
substantially impair competition in the national customer and local broadline markets and that the equities weigh in favor of injunctive relief. The court’s reasoning is set forth in the accompanying Memorandum Opinion. Because the Memorandum Opinion likely contains “competitively sensitive information” of Defendants and third parties, Protective Order Governing Confidential Material, ECF No. 87 ¶ 1, the court has issued the Memorandum Opinion under seal to allow the parties to propose redactions of competitively sensitive information. The parties shall meet and confer and present to the court proposed redactions to the Memorandum Opinion no later than 5:00 p.m. on June 25, 2015. After considering the proposed redactions, the court will issue a public version of the Memorandum Opinion on June 26, 2015.
Sysco - US Foods PROPOSED FINDINGS OF FACT AND CONCLUSIONS OF LAWMark Moreno
The evidence is overwhelming that the proposed merger is intended to capture the enormous efficiencies in excess of $1 billion in cost savings that will occur when Sysco and US
Foods combine These savings will enable the merged entity to compete more effectively including by lowering prices to the benefit of their customers. With the exception of handful of suspect customer and competitor declarations procured by the FTC speculating that prices might go up there is no evidence that prices will increase as result of the
Affordable Care Act - Next Steps for RestaurateursMark Moreno
Understanding the ACA and “operationalizing” it in a
restaurant business will be challenging. The Treasury
Department and Internal Revenue Service published final
regulations in February and March that provide the rules
by which employers will comply with the employer-mandate
and employer-reporting requirements.
Getting Out of PA-DSS Scope and Eliminating the High Cost of EMV: What you need to know
by Mike English
Executive Director, Product Development
Heartland Payment Systems
FTC Complaint Sysco US Foods AcquisitionMark Moreno
Respondents are—by a wide margin—the two largest broadline foodservice distributors in the United States and each other’s closest competitor. Sysco and US Foods are the
only two broadline distributors with nationwide networks of distribution centers, making them the best options for customers with facilities spread across the country.
Respondents also compete fiercely with one another in numerous local areas to serve independent restaurants and other foodservice customers.
MEET THE REVOLUTIONARY VENDING MACHINE WITH TOUCHSCREEN TECHNOLOGYMark Moreno
DIJI-TOUCH MAKES VENDING OPERATIONS A TOUCH MORE EXCITING. THIS INTERACTIVE MACHINE TURNS EVERYDAY SNACKING INTO A DYNAMIC VENDING EXPERIENCE.
Touchscreen Technology—Easy and fun to use.
Unique Engagement—Entertaining advertising and promotional content create memorable user experiences.
Remotely Monitor Machine Status and Inventory—Enjoy full analytics and reporting at your disposal.
Purchasing any technology can be confusing, and this applies to the purchase of a point-of-sale (POS) System. This document will provide you with a checklist of questions and information you should have discussed and/or documented before or as part of your purchasing process. The first document is a checklist of questions you should ask, and the second is a definition of terms for your purchase agreement. Both of these documents will help protect you and your business and help ensure that you make an appropriate
purchase from a qualified POS Systems provider. It is intended to clarify the terms of your agreement and avoid any misunderstanding on the scope or services and terms of the purchase agreement.
Bermar America Put a Sparkle into Wine by the Glass SalesMark Moreno
About
We believe that wine-by-the-glass should be served as the wine maker intended, freshly hand poured from the bottle with craft.
Mission
Have you ever been served a bad glass of wine ? Our mission is to help hospitality operators guarantee that they never serve that inferior experience, and to help them create 'moments of magic' in their wine service. We believe that the art and science of wine service should strive to elevate the wine experience to maximize enjoyment.
Description
At Bermar America we believe that wine-by-the-glass should be served fresh, and hand poured with craft just as a wine maker intended. We are committed to helping wine professionals create these ' moments of magic' with their wine service, and deliver the finest quality wine experience for their guests, . We provide our unique high precision wine preservation technology , Le Verre de Vin and Pod ...
General Information
Wine Preservation Systems and a company that stands for quality, service, education, and great wine!
a retrofit device developed by The
Madison Energy Group and a leading product
development company which reduces the energy
consumption of commercial grade coolers and
freezers.
Commercial refrigerators waste 15-30% of their
energy on up to 60% more cycles than necessary to
maintain food temperature at the appropriate
level.
Thermostats measure air temperature instead of
food temperature (air is less dense and fluctuates
significantly more
Reduced CO2 emissions
Reduced energy consumption
Endorsed by the Green Restaurant Association
@MadisonEnergy
Restaurant Trends 2014 by Restaurant BriefingMark Moreno
Hudson RieHle, Senior VP, Research & Knowledge Group, National Restaurant Association, predicts that the oPeRATinG enViRonMenT FoR ResTAuRAnTs in 2014 will continue on the same positive – but modest – growth path. “Overall, we’re certainly not looking at a rebound to prosperity, but things are headed in the right direction. Last year was the fourth consecutive year of growth for the restaurant industry, although modest. Moving into 2014, economic indicators such as real domestic product, real
disposable income, and employment growth remain positive.” Employment growth – which Hudson says shows signs of being somewhat higher in 2014 – is especially key for the industry because even a small uptick in employment translates into a greater ability for consumers to spend in restaurants.
Food & Water Watch Comment on Proposed Sysco US Foods MergerMark Moreno
Washington, D.C. — In response to the latest news of giant food corporations seeking to further consolidate, Food & Water Watch demanded that the U.S. Federal Trade Commission undertake a thorough and comprehensive analysis of the proposed merger between the two biggest U.S. foodservice distribution firms: Sysco Corp. and US Foods Holding Corp. These companies deliver food to restaurants, schools, hotels and other cafeteria and hospitality establishments.
In a letter sent yesterday to FTC Bureau of Competition Director Deborah Feinstein, Food & Water Watch outlines several antitrust concerns with the proposed corporate union that deserve close scrutiny; requests the agency to oppose the early termination of the antitrust review and urges federal regulators to extend the merger waiting period to thoroughly review the implications of the proposed merger. Food & Water Watch http://www.foodandwaterwatch.org/pressreleases/food-water-watch-slams-sysco-us-foods-merger/
Interesting mobile option to engage customers. Opt4Text™ is the premiere custom Mobile Marketing provider for your business. Text message marketing instantly connects your brand with your audience. The best part is that your message is as relevant as the moment you hit the send button.
You can link to a mobile website to utilize pictures, videos, songs or ringtones! No longer are the days of expired coupons or wishes that you were able to tell your audience about a emergency or special. It's time to call your audience into action!
HOUSTON, TX and ROSEMONT, IL – December 9, 2013 – Sysco Corporation [NYSE: SYY] and US Foods today announced an agreement to merge, creating a world-class foodservice company. The total enterprise value of the transaction is approximately $8.2 billion and the combination has been approved by the Board of Directors of each company.
One chef’s knife has been a champ in our kitchen for nearly two decades.
Can any other blade come close to offering what it does—and at a bargain price?
by Hannah Crowley
Therma-Tek Range Corporation may appear to be a new company in the market, but our tradition and combined experience spans more than 100 years. The owners are seasoned professionals in the design, development, manufacture and sale of commercial foodservice equipment. After selling and re-capitalizing their prior company; which was another well known and established manufacturer of residential and commercial cooking equipment, the owners decided to continue their tradition of success in manufacturing the highest quality foodservice cooking equipment with the formation of Therma-Tek Range Corporation. Our products carry this experience behind them, which sets them far ahead of our competition. The company represents quality, strength and performance, backed by unparalleled warranty and continued service. We carry a reputation in the marketplace for developing and delivering quality, value conscious, innovative products in a timely manner. We continuously emphasize research and development, as well as cutting edge product development, with a close understanding of market trends and needs.
Mercer—a company name highly regarded in the culinary
trade—is synonymous with quality, professional cutlery. A leader in the commercial market for more than 30 years, and the predominant supplier to more than 90% of culinary academies
in North America, Mercer brings you the finest tools used by
the industry.
World renowned commercially, Mercer historically supplied culinary education and professional chefs who have come to rely on the company for its distinct product offerings. Working closely with chef educators, chefs, and the leaders in this industry, Mercer constantly develops and expands its product lines to fulfill their needs. As the trend in the culinary arts continues to gain popularity, Mercer's new product offerings have allowed the company to expand its brand from the broadening professional base and to crossover into the consumer market. The ever-more-sophisticated home consumers are seeking those products used by the professionals. With a growing business in retail cutlery through gourmet, specialty, and department stores, Mercer's products are squarely positioned as high quality professional grade, but with a distinct value advantage.
The hallmark of Mercer's cutlery: exceptional quality in materials, unique design, and dedicated craftsmanship, honed to the exacting performance needs of the discriminating chef makes our products the undeniable choice for the professional and the enthusiast. Mercer is committed to delivering products and services that you can build on and
grow with.
Mercer Cutlery is a division of Mercer Tool Corp. This third generation family business which began as a small industrial company has evolved into a corporation with two distinct product ranges: Mercer Abrasives (www.mercerabrasives.com), the original industrial division offering bonded abrasives, coated abrasives and related products; and Mercer Cutlery, offering professional quality culinary tools and sets.
Today, Mercer's corporate commitment is summarized in these five words: Quality, Performance, Delivery, Service, and Price. The company will continue to offer products people know, use, and trust.
If you have comments, questions, or suggestions about Mercer, this website or any of our products, please e-mail us at: info@mercercutlery.com
Mercer—a company name highly regarded in the culinary
trade—is synonymous with quality, professional cutlery. A leader in the commercial market for more than 30 years, and the predominant supplier to more than 90% of culinary academies
in North America, Mercer brings you the finest tools used by
the industry.
World renowned commercially, Mercer historically supplied culinary education and professional chefs who have come to rely on the company for its distinct product offerings. Working closely with chef educators, chefs, and the leaders in this industry, Mercer constantly develops and expands its product lines to fulfill their needs. As the trend in the culinary arts continues to gain popularity, Mercer's new product offerings have allowed the company to expand its brand from the broadening professional base and to crossover into the consumer market. The ever-more-sophisticated home consumers are seeking those products used by the professionals. With a growing business in retail cutlery through gourmet, specialty, and department stores, Mercer's products are squarely positioned as high quality professional grade, but with a distinct value advantage.
The hallmark of Mercer's cutlery: exceptional quality in materials, unique design, and dedicated craftsmanship, honed to the exacting performance needs of the discriminating chef makes our products the undeniable choice for the professional and the enthusiast. Mercer is committed to delivering products and services that you can build on and
grow with.
1. Power to the People or Just a Fad? Forecasting the Future of Group Buying
Sites
Published : November 10, 2010 in Knowledge@Wharton
It took a lot for Rob Solomon to leave sunny Silicon Valley for
wintry Chicago, but it's a change he was happy to make. The
e-commerce veteran moved to the Midwest to become president of
group buying site Groupon, spotting the company's potential to be
the next eBay. Named by Forbes magazine as the fastest growing
company in web history, Groupon leverages consumers' penchant
for online bargain hunting with the power of social networking to
build a business with skyrocketing sales. "The Internet has never
been really very good at bridging the gap between traditional
commerce and the web," Solomon, ex-CEO of travel search site
SideStep, says. "Then we came along."
Groupon -- from the words "group" and "coupon" -- negotiates
deeply discounted deals with mainly small businesses and alerts its
legion of e-mail subscribers to the offer, such as half off on a
Swedish massage. The deal is triggered when a minimum number of users buys the voucher, and
consumers are rewarded if their friends purchase as well. The discounts run from around 50% to more
than 90%, but the deal must be purchased within a limited time, usually 24 hours. To entice buyers,
Groupon's writers craft a zany ad in keeping with the Internet zeitgeist. "Creating a masterwork of art can
be like wandering through a maze: After a lengthy period of reflection and contemplation, you'll still
probably starve," reads the 50% off ad for the Absolute Abstract art gallery in Philadelphia. "Appreciate
an artist's risks and transcendent joys with today's Groupon."
The deals and the drama have propelled Groupon into the e-commerce stratosphere. Founded in 2008,
Groupon now reaches 25 million subscribers in 29 countries. The Chicago-based company serves more
bargain-hunters than its biggest rival, LivingSocial, which has more than 10 million subscribers in the
U.S., Canada, U.K. and Ireland. Dozens of similar sites have sprung up to tap the group-buying trend as
well, including BuyWithMe, Dealster, SocialBuy, HomeRun, Tippr, DealOn, TownHog, MyDailyThread,
CrowdSavings, Bloomspot, Scoop St., Twongo, EverSave, YouSwoop, You've Gotta Get It,
TwoBuckDuck, DealPerk, FlyCoupon and many more. Other websites, such as restaurant reservation site
OpenTable and companies like AOL and Cox Media Group are getting in on the act by launching their
own Groupon-like services. (OpenTable focuses specifically on eating establishments.) In a fragmented
market with low barriers to entry, Groupon is by far the largest -- for now.
But are group buying sites just a passing fancy that will end as quickly as today's 70% off deal? "I don't
think it's just a fad," says Kartik Hosanagar, a professor of operations and information management at
Wharton, noting that social commerce sites tap into the needs of both small businesses and
budget-conscious consumers. The deep discounts and social nature of the deals appeal to the
Internet-savvy, while local shops get mass exposure without the upfront marketing costs of newspaper ads
or TV and radio spots. Groupon markets the deal and shares the sales with the business. "Customer
acquisition costs for small businesses are very high," Hosanagar adds. "Groupon allows small businesses
to acquire customers in a fairly efficient manner." Moreover, the business model "leverages the power of
social networking and collective buying in very natural ways -- that's here to stay as well."
Back to the Future?
Group buying sites are not new, but previous incarnations failed to gain much traction with consumers. A
This is a single/personal use copy of Knowledge@Wharton.
For multiple copies, custom reprints, e-prints, posters or
plaques, please contact PARS International:
reprints@parsintl.com P. (212) 221-9595 x407.
All materials copyright of the Wharton School of the University of Pennsylvania. Page 1 of 4
Power to the People or Just a Fad? Forecasting the Future of Group Buying Sites: Knowledge@Wharton
( http://knowledge.wharton.upenn.edu/article.cfm?articleid=2633)
2. high-profile flameout was Mercata, backed by Microsoft co-founder Paul Allen. The Bellevue,
Wash.-based company opened its online doors in 1999 to people who wanted to band together for
discounts on products such as kitchen appliances. The items would start out at one price and as more
users clicked to buy, the price dropped. But two years later, the company closed shop. Mercata founder
Tom Van Horn said at the time that poor market conditions contributed to the firm's demise. It didn't help
that social networking had yet to take off. Consumers weren't familiar with the idea of online group
buying, and Mercata also had to compete with discounted prices on the same goods from other e-retailers.
What makes group buying sites click today? For one thing, consumers are more comfortable with
socializing and sharing information online, as the popularity of Facebook, LinkedIn and Twitter attest.
The new sites also offer deals that usually cannot be found elsewhere on the Internet, such as 45% off
cupcakes at the corner bakery. Another difference: Groupon and similar sites reveal the amount of the
discount upfront (although it's only triggered if enough people sign on to buy the item.) Mercata's
customers, however, weren't told the final discount until a certain number of people agreed to buy the
product. Such tweaks to the business model make the latest iteration of group buying sites more likely to
last, experts say. (In February, venture capitalist Martin Tobias bought several group purchasing patents
from Allen's Vulcan Capital and launched Tippr.com.)
That doesn't mean there won't be an industry shakeout. It's already claimed SwoopOff, which merged with
HomeRun. "There are a lot of copycat Groupon models and it's not clear all of them will survive,"
Hosanagar notes. Consumers probably will pick a few good sites to follow instead of signing up for
dozens of them. To rise above its rivals, a group buying site needs to have a good brand name and
reputation, he says. Small businesses will naturally want to partner with the site that has the biggest
following; in turn, the greater diversity of deals will attract even more consumers. Meanwhile, the
remaining sites will have to fight harder to get market share. "The question is, which [site] will brand
itself well?" Hosanagar says. "Groupon has a significant head start there. The others are going to struggle
with the issue of very few differentiators."
LivingSocial CEO Tim O'Shaughnessy isn't quite ready to crown Groupon the leader yet. "The space is
very crowded but it's all about scalability, and those that can scale their business will succeed in the end,"
he said in a statement. "LivingSocial intends to stay in the game, even as smaller players drop off." But
the dynamics of the market could change, and observers expect small businesses to begin crafting more
profitable deals for themselves -- possibly at the peril of profits for partnering social commerce sites.
For example, Groupon negotiates with a small business to offer steep discounts, usually half off or more,
and then takes 50% of the resulting sales. That leaves the business with at most 25% of sales to cover
overhead and product or service costs. For many shops, that means the business will barely earn a profit
or even lose money. If a spa offers 50% off a $100 massage, for example, sales would be $50 per
customer and Groupon takes $25. That leaves the spa with $25. Let's say after paying the massage
therapist and covering overhead and other costs, the spa loses $20 per customer. If 200 people bought the
voucher and 70% redeem it, the spa's loss would be $1,300.
Blinded by Big Discounts?
The next time Tom Block, owner of the Naked Chocolate Cafe in Philadelphia, works with a social
commerce site, he plans to design a more profitable deal. Block recently partnered with Groupon to offer
a $10 voucher good for buying $20 worth of goods at his dessert and chocolate shop. Groupon took half
of the sales, leaving Block with $5 in sales per customer for selling sweets worth four times more. His
shop sold 2,500 vouchers and expects about 80% of them to be redeemed. While "I'm sure it's not a
money-maker," Block notes, "it certainly keeps the awareness going, and that's why we wanted to do it."
He is willing to offer another coupon, but "I might offer something more specific, like hot chocolate,
instead of blanket gift certificates." Still, Block is not sure that he will ever make money off the steep
discounts required to put out an offer attractive to users of Groupon and its competitors. Two-thirds of
businesses surveyed nationally said their Groupon deal was profitable, says Utpal Dholakia, a marketing
professor at Rice University. However, fewer than 15% of consumers who used their vouchers came back.
According to Solomon, Groupon encourages small businesses to slash prices steeply to make the deal
compelling enough that consumers will be willing to try something new. "The traditional methods [of
All materials copyright of the Wharton School of the University of Pennsylvania. Page 2 of 4
Power to the People or Just a Fad? Forecasting the Future of Group Buying Sites: Knowledge@Wharton
( http://knowledge.wharton.upenn.edu/article.cfm?articleid=2633)
3. acquiring customers through newspaper ads or The Yellow Pages] have failed pretty miserably over the
last 10 years."
But what happens once masses of consumers are trained to expect big discounts? If they don't find a
compelling deal at one site, they will hop to the next one. The result is erosion in profitability for
businesses in an area as bargain-hunters shift from shop to shop or deal to deal. "You train customers to
do things that are not ultimately that attractive," David Bell, a Wharton marketing professor, points out.
"I think it's important for these businesses not to give away the farm" for the sake of a short-term surge in
business.
If deals are crafted to bring in new customers, Bell says, the one-time loss on the promotion could be
worth it in the long run. For example, if a clothing store that mainly attracts female shoppers wants to
boost its male patronage, the business could launch a 60% off sale on men's shirts. "This is almost a
necessary condition for it to work -- pulling in people who might not otherwise have thought of using
your product or service. If you only get the regulars, it won't work."
Offering a deep discount also could pay off if a business employs the markdown to introduce a new
product, suggested Eric Clemons, a Wharton professor of operations and information management. For
example, when Procter & Gamble's Gillette unit wanted to introduce consumers to Trac II, the first
two-bladed razor in the market back in the 1970s, the company offered the product at a discount.
According to Clemons, consumers at the time didn't realize the advantages of a razor with two parallel
blades, and the discount motivated them to try it. Once people get to know a particular product,
businesses should end the promotion, Clemons adds, noting that similar discounts don't make sense for
existing products because the same customer pool will buy them, just at a lower price.
For a small business to justify a deep discount on existing products or services, Clemons says, the
management has to believe that the product or service offered is better than what the market currently
believes. For instance, a nearby Italian restaurant suddenly offers a tasty group discount deal: $15 for $30
worth of food. The business has not been doing well and believes the promotion will improve sales.
Management is willing to take a loss on that deal, thinking the influx of new customers will be worth the
expense in the long run. But if the eatery doesn't have a good reputation in the city, the restaurant will get
a rash of bargain-hunters coming in for that cheap meal and most won't be back until the restaurant offers
another good deal. "The question is: Why would the market not know how good you are on an existing
product? Why will it fall in love with you after the promotion?" Clemons asks. "For you to win, your
product has to be better than what the market thinks it is right now." The deal could work, he suggests, if
the restaurant in question has hired a new chef or wants to introduce a revamped menu.
Personalization and Scale
As the online group buying market gets more crowded, look for sites to try new things, experts say. For
one, deals are likely to become smarter and more focused, Hosanagar notes. Instead of blasting everyone
with the same deal of the day, for instance, a discount for dentures would only hit senior citizens, while a
60% off voucher for children's clothes would be targeted to married couples in their early 30s. Group
buying sites could also send users some deals based on past purchases. If a consumer bought photography
lessons, for example, he or she might be offered a deal on cameras.
Groupon is already trying to tailor its offers more closely to particular users. Deals are now customized
according to a consumer's age, gender, location and interests, Solomon says. Instead of sending out one
deal per day to all users in a particular city, the company now crafts 10 to 20 offers. Subscribers continue
to receive one discount offer per day, but the deal they are sent is based on the information they provide
the site. Groupon also has partnered with eBay and newspaper publisher McClatchy to offer its vouchers
on those companies' websites. Solomon declines to comment on sales, but The Wall Street Journal
reported that revenue is on track to hit $400 million this year -- no small feat for a two-year-old company.
According to a Bloomberg report, Groupon is seeking venture funding that may value the company at
about $3 billion. Asked if any buyers have come calling for Groupon itself, Solomon would only say that
"people are very interested in our model."
With an increasing number of competitors banking on that same model, Hosanagar suggests that the key
to long-term viability for Groupon will be improved personalization and leveraging its scale. "If
All materials copyright of the Wharton School of the University of Pennsylvania. Page 3 of 4
Power to the People or Just a Fad? Forecasting the Future of Group Buying Sites: Knowledge@Wharton
( http://knowledge.wharton.upenn.edu/article.cfm?articleid=2633)
4. customers are flooded with e-mails from group-buying sites and private sales sites, the key question is
which ones they will bother to read," he says. "Groupon needs to become as good as Netflix in terms of
understanding customer preferences, segmenting them and personalizing their experience."
This is a single/personal use copy of Knowledge@Wharton. For multiple copies, custom reprints, e-prints, posters or plaques, please contact
PARS International: reprints@parsintl.com P. (212) 221-9595 x407.
All materials copyright of the Wharton School of the University of Pennsylvania. Page 4 of 4
Power to the People or Just a Fad? Forecasting the Future of Group Buying Sites: Knowledge@Wharton
( http://knowledge.wharton.upenn.edu/article.cfm?articleid=2633)