Pinterest Business Model Canvas

                Pinterest is an interesting social media site, one that I had not yet visited.  Perhaps that should be expected as the majority (nearly 80%) of the users are female.  Regardless, Pinterest is a very interesting endeavor in social media that has spent most of its existence cultivating the end-users, but has now begun looking to marketers and advertisers as another valuable customer segment.  These two segments are uniquely connected with Pinterest as marketers are able to leverage the passions of the end-users, which they have already displayed through the pins, boards, and likes, which are the main customer relationships.  This is directly linked to Pinterest’s value proposition where they offer a space for users to interact and collaborate with those who are also passionate about a specific topic.  Connecting these users with an adjacent brand or value proposition from a company that pays to access this knowledge seems like a winning proposition.

                The key activity of pairing a user’s interest with other related content is what enables the collaboration between end-users and marketers, the key partners for Pinterest.  This is done in parallel to a delicate balancing act where Pinterest meters the amount of promoted data to ensure the website stays authentic and home-grown.  In addition, Pinterest works to create new ways to connect, which is one of their cost structures that utilizes the resources of their staff.  The goal is to provide revenue through promoted pieces as well as a stream from the traffic Pinterest might direct to other content providers or retailers.

 http://www.fastcompany.com/3033001/agendas/pinterests-unique-approach-to-building-new-features-users-love

http://thenextweb.com/facebook/2014/04/21/facebooks-referral-traffic-share-grew-37-q1-2014-pinterest-48-twitter-increased-1/

http://www.forbes.com/sites/jeffbercovici/2014/07/17/nailed-it-buzzfeed-cracks-the-pinterest-code/

 

Post for Week of 06 JUL - About The Data

Big data has always been something that I have been interested in.  The insight that can be learned is unfathomable, and as an Engineer by training, I find the hard data reassuring as I work through segmentation and analysis.  In addition, the democratization of knowledge has been partially enabled by Big Data.  The same information we use as marketers to better understand what the customers are looking for, we use as consumers to be alerted when the item we have been searching for comes available or there is an update on a topic we have previously expressed interest in.

This data is imperative as we work to establish a business model canvas on the idea we intend to commercialize.

One thing I kept wondering as I read through all of this week's material was: What does my online profile really look like to marketers?  I did some digging and came across the New York Times article below that outlines how one Big Data provider is addressing this question to others.  The data they had on me was incredibly detailed, albeit a bit incorrect, but I surprised myself.  I took out the granular data (i.e. my exact address, what type of car I drive, etc.), but I decided to leave the non-individual data.  It turns out that it was not so scary once I was able to see what it actually looked like.

http://www.nytimes.com/2013/09/01/business/a-data-broker-offers-a-peek-behind-the-curtain.html?pagewanted=all

https://aboutthedata.com/

Business Model Canvas Project #1: Holtsman's Donuts

               The Business Case for Holtsman’s Donuts is a strong one.  They have long been respected in the Cincinnati confectionery industry as trendsetters that offer unique flavor experiences, with the highest quality, and at a reasonable (impulse buy level) price.  The small food shop model is certainly not a new one, but Holtsman’s business model receives added robustness as they have successfully been able to move up-market with wildly delicious varieties, and that move comes with minimal increases in marginal costs as their raw materials are incredibly inexpensive.  It is estimated that the average donut costs just $0.12 to make, which leaves significant room to cover the fixed costs, while still protecting a significant margin.

                In addition, Holtsman’s has established themselves as “the” place to get donuts in Cincinnati.  They have done so through a wide social media presence which encourages customers to post pictures and brag about their latest purchase. Holtsman’s also announces exclusive “one-off” donuts on social media each morning which drives unplanned stops. All of their donuts are made right in the store, including the icing and the fillings, which is a huge eye catcher in areas with high foot traffic.  Being a breakfast spot, they have integrated locally roasted coffee, which also has a very small marginal cost, providing strong margins.  Recently, Holtsman’s has expanded their brand into the “lifestyle” space offering comfortable stores, and long hours (open until late in the evening most days) that encourage customers to stay for a while.

                The Holtsman’s Donuts value proposition is quite high.  The management team leverages their strong product in unique ways that continues to delight consumers.

http://www.holtmansdonutshop.com/

http://yourbusiness.azcentral.com/can-money-made-donut-business-14915.html

Week 3 X501 Post

I found the material in this week's section on micro-segmentation to be fascinating and especially noteworthy, given I am in the mass production industry as part of P&G.  We certainly have been working to change our direction, but any change this fundamental will certainly take time.  The Bloomberg link below does a nice job outlining the challenges P&G and other legacy mass marketers face as they follow the increasing segmentation.  As someone that currently works in manufacturing, where high fixed costs are everywhere, this change to more specialized and targeted products can be frustrating as these large plants work best when they produce a lot of a certain type of product.  We do not have the ability to customize your baby's diaper with their name and favorite Sesame Street character.  This is a paradigm shift forces a transition of how our work in manufacturing is done.  Many close to the manufacturing operation view this with skepticism as shorter runs and higher change overs drives up costs through downtime and increases in unplanned stops.  However, it is the right shift long-term as it will enable P&G to have a broader portfolio of products with many markets vs. the one large mass market. 

http://www.businessweek.com/stories/2004-07-11/the-vanishing-mass-market

Week 2 Reflection

First,  let me apologize for the brevity of this post.  I was at Kelley Connect week and am not traveling for work to a plant via car.  Not much time to get around to the posting!

The biggest take away I have is that the Internet has opened up a huge array of options for a business to communicate to their consumers.  The key for business is that they must earn the trust of the consumer (i.e. New York Times and their pay wall) while still properly communicating their message.  I like your week 2 title, "Empowering the consumer" as this is exactly the path to success in the digital space.  It forces companies to really step up their game in terms of product and promotion as your competitor is just one click away.  Empowering to consumer allows the message to be communicated in a way that feels in the best interest of the consumer to consume it.

X501 Reflection for the Week of 08 JUN

I was able to read a good deal of the material this week, with the exception of the textbook (mine hasn’t arrived yet) and I find the material to be fascinating.  First, it is always in interesting experience to review the changes in the internet and associated technologies since the snap shot in the article.  The rate at which some of these sites have fallen to the wayside is unprecedented.  However, I did notice that journalism covers technology in the same way today as they did years ago.  There is a lot of lusting towards the “good times” of the past and a hesitance to embrace the new technology, or there is great excitement and grand predictions of how the system will change the world.  This sort of reporting is understandably difficult as it is incredibly hard to fully understand what a new technology will actually be used for.  The Katie Couric discussion on what the internet is reminded me of the conversations I have had with my parents about Facebook, Twitter, etc.  I am very excited to dig into this material further to understand the latest tools and trends around Marketing in the Digital Age.

I come to this course via P&G, which many people call a Marketing Company.  That is certainly the understanding I had as I finished my Bachelors in Mechanical Engineering, and at times can be frustrating to hear when there is so much work done outside of marketing at the firm.  I have always had an interest in Marketing (the field where my Mother worked), and have enjoyed the visibility I have to the vast Marketing work done to promote our products (link below).  I look forward to exploring this in our quarter together so that I may better understand the work done at my company and across the industry.

http://www.bizjournals.com/cincinnati/blog/2013/09/digital-marketing-is-dead-pg.html?page=all