Three Major Market Forces
- Social Responsibility
The speed and scale at which technological achievements are progressing are staggering and intimidating. There has been a swift rise in e-commerce, mobile internet and web penetration in upcoming markets. Keeping this in mind, it is important for brand marketers to enhance their digital strategies.
Ginormous quantities of information about almost everything is accessible to marketers and consumers. The old saying “information is power” needs to give way to the new idea that “sharing information is power”.
Example – Amazon Data Lake
The worldwide financial operations team of Amazon has the daunting task of tracking almost petabytes of data. One tiny miscalculation of metric or delay in data collection and calculation can have an impact worth millions of dollars.
Keeping in mind the severity of the situation, in 2019, a solution was offered to make a data lake that can hold up one of the largest logistics networks on the planet. This data lake was internally called Galaxy Data Lake.
After the conception of the galaxy data lake, all different teams are now working on transferring their data into it. A data lake is a centralized guarded vault.
Example – Amazon Data Lake
It lets you stock, administer, locate and shares all of your organized and unorganized data at any scale. Data lakes do not need a pre-defined schema. That is why raw data can be processed without knowing what insights you might want to explore in the future.
Example – Amazon Prime Air [Drone Delivery]
FAA approved Amazon’s Prime Air drone delivery fleet in August 2020. The drone delivery service was expected to begin operations by late 2019 in select cities. However, the service is yet to materialize as of October 20th.
The exciting Prime Air service will use delivery drones to independently fly single packages to customers. The aim is to deliver solo packages within 30 minutes of ordering. The testing for the service was started in 2013 Amazon joined UPS and Alphabet-owned Wing, which had previously won FAA approval for their drone delivery operations.
Example – JD.com [Drone Delivery]
JD.com was one of the first e-commerce company worldwide to use drone technology for such type of commercial use. It started using drones to reach customers in some of China’s difficult-to-reach remote areas. It was during the Singles Day (November 11th) sales festival of the year 2016 that the company used innovative drone technology.
- JD X developed the drone infrastructure.
- JD X is JD’s research and logistics innovation lab.
- It concentrates on creating smart logistics solutions for the company.
- The aim is to make the transport of goods from their warehouses to Chinese customers, quicker, cheaper and more efficient.
- Emergency relief efforts have used JD drones for several years.
They played a major part in assisting the fight against COVID-19.
In Dalad Banner county in Inner Mongolia, a community, Dongyuan Xincun was deeply impacted by COVID-19. 36 buildings and around 800 families in the community had to stay at home to avoid the risk of cross-infection. JD’s drones were a massive help in disinfecting the community, two days before the opening of the community.
It was a safe and very efficient approach without the need for any human labour. This resulted in a considerable reduction in the risk of cross-infection. The drone flew within a radius of 5 kilometres carrying disinfectant weighing 10kg.
- New transportation, shipping, and communication technologies have made the world a smaller place.
- It certainly has made it easier for everyone to know the rest of the world, to travel, and to buy/sell anywhere.
- Companies now have the opportunities to take lessons and marketing ideas from one country and apply them to another.
- As a result of Globalization, countries have become increasingly multicultural.
Example – Netflix
- Netflix is a well-known streaming service running TV series, documentaries, and feature films.
- It offers a wide range of genres and languages catering to subscribers in over 190 countries.
- The international streaming segment accounts for roughly 53% of Netflix’s total revenue (as of 2019), while the domestic streaming division accounts for 46%.
- Netflix reported $20.2 billion in total revenues for the full year of 2019.
This was divided into three operating segments
1. $10.6 billion in FY2019, almost 53% of total revenue.
(By charging a monthly membership fee for content streaming and its related services to members outside of the U.S. in more than 190 countries.)
2. Domestic Streaming
$9.2 billion, which is almost 46% of total revenues.
(By charging monthly membership fees for content streaming and its related services to members in the U.S.)
$297 million, which is around 1% of total revenues.
(By charging monthly membership fees services consisting solely of DVD-by-mail.)
1. Economically Efficient
- Consumers have to pay a subscription fee which is remarkably lesser than most media services.
- It becomes economically efficient for the consumer globally.
2. Subtitles and Language Barrier
It provides subtitles for viewers while streaming the content so that one can watch all movies and shows and not just the ones in their first language.
3. The Development of Global Content
With the company’s expansion, they hired directors, writers and actors globally to make new and unique content.
3. Social Responsibility
Socially responsible marketing is a concept based on the idea that market offerings should not just be profit-driven. They also need to fortify social and ethical values for the benefit of citizens. It’s an all benefiting strategy that should always be taken into consideration. Problems like Pollution, poverty, shortage of water, climate change, wealth concentration and wars demand our attention.
Slowly the private sector is taking up some responsibility for the improvement of living conditions. Firms all over the world have raised their role of corporate social responsibility. Socially responsible marketing reproves excessive consumerism and the damage that corporations cause to the environment.
Example – Adidas
Adidas-Parley footwear, made from upcycled ocean plastic was a paramount success. The company has continued to follow the standard set and look for new ways to innovate products in an ecologically conscious way.
By 2020, Adidas has the aim to produce 15-20 million pairs of shoes using recycled plastic waste from coasts regions and oceans In 2017, the figure was one million pairs. In 2018, it was five million pairs. And last year it was more than eleven million pairs. The market launch for its first fully recyclable running shoe “Futurecraft Loop” is planned for 2021, after it being in the test phase since 2019.
Example – Coca-Cola
Coca-Cola: A Bottle Love Story
ØIn 2017, Coca Cola Great Britain created an advertisement called “Love Story”, which showed two plastic bottles made out of recyclable material that fell in love with each other over and over again all thanks to the beauty of recycling. This was a great example of the brand getting conscious of this issue and recently announcing that by 2030 they aimed to collect and recycle the equivalent of all of its packaging.
Under the expansive plan called “World Without Waste”, the company and its bottling partners will undertake the determined goal of focusing on the entire packaging life cycle. It will include everything right from the designing and making of bottles and cans to how they are repurposed and recycled. This elaborate plan is a step in the larger strategy to grow by doing business not just the easy way but the correct way.