Green Consumer Loyalty Considered – Case Study Discussion

admin — Sun, 07 Feb 2010 23:09:53 +0000

What happened to the American Auto Makers, it seems that over the years, fewer and fewer folks and their families have carried on with their loyalty for Ford, Chrysler or General Motors? Why is this? It seems that often the consumers have more loyalty for Toyota and Honda then for the big three American Brands. Well one recent story may in fact give at least some insight to this challenge:

Study: Hybrid Car Owners are the Most Loyal

DETROIT — Hybrid car owners are some of the most loyal in the U.S. market, with nearly half purchasing a vehicle of the same make when they buy another car, according to a study released Monday by an automotive data company. Forty-seven percent of hybrid buyers buy a vehicle of the same make, compared with 35% of buyers overall, according to Experian Automotive… Eighteen percent of hybrid car buyers even buy the same model, compared with 12% overall. [Source: Associated Press].

Apparently, Detroit is starting to learn what Honda and Toyota have already discovered with regards to their hybrid customers. In fact, now that I think about it, everyone I know who owns a Prius also owns is planning on buying another one or replacing that one if and when it ever dies, interest statistics indeed.

Strong customer loyalty can save the big US automakers 100s of millions of dollars per year in advertising. And both GM and Ford have several Hybrids on the market and are introducing many more in 2009, 2010 and 2011. And right about now that is a very important fact to consider for the struggling automakers.

By: Lance Winslow

Case Study; Staples VS Office Depot

admin — Thu, 21 Jan 2010 23:49:57 +0000

Many people have shown done case studies on the Office Supply Industry and there has been literally an over kill of white papers, research and even books written on the issue. Currently in the market there are several such category killer businesses in that sectors such as Office Max, Office Depot and Staples. Indeed, we should also not forget Corporate Express either.

Most people and consumers believe this sector to be a retail endeavor, yet that is not really so. In fact the biggest income generator is the catalog and Internet sales to Corporations and it is know that businesses which have 20 or more employees spend $200 per year in office supplies. Are you shocked by that high number; well you should not be if you are in a small business for yourself and post all your office supplies receipts into Quick Books and fill out your Schedule C tax return. Small Businesses often spend even more.

Even better or worse depending on your perspective; Government Agencies spend $250 to $400 per person in office supplies. Paper Pushers terminology comes to mind? Even considering the huge push of the Government Paper Work Reduction Act office supply expenditures continue to increase.

Now for an interesting kicker; Staples was the first office supply store retailer to really get into the Internet Ordering and Delivery to Companies. Office Max and Office Depot followed into this lucrative market and this has affected Corporate Express, which is solely Corporate Office Supply Delivery, not retail office supplies.

Why is this of interest? Well simple Office Depot outsourced its phone ordering call in lines and those who answer the phone are not in the United States. So now the Staples Corporate Sales Forces are going ballistic with Corporate clients changing companies for office supplies. Moral of the story; Outsourcing does not always make sense. Consider this in 2006.

By: Lance Winslow

Study Desk » Lance Winslow

Green Consumer Loyalty Considered – Case Study Discussion

Case Study; Staples VS Office Depot