Profits at what price? Pfizer had two choices when it discovered that each vial of its vaccine held six rather than five doses. One was to push the FDA to declare a vial contains six doses. With this decision, Pfizer would make more money. Because it gets paid for each dose, each vial could now be priced twenty-percent above the agreed-to purchase price. The premium would all drop to Pfizer’s bottom line. The alternative was to remember the original price met or beat Pfizer’s expected return rate, which would be huge given the quantity of vaccinations involved. Producing a vaccine for an unpredicted global pandemic is a once-in-a-lifetime opportunity for a pharma company. The extra dose could be a contribution, helping nations vaccinate more people than they had planned. Pfizer’s leadership team decided on the FDA route, choosing higher profits over societal benefits….
Dear brand, “How many ways can I measure thee?”
A great brand delivers a lot, not just to lovers of the brand but also to its owner. Consider Apple’s price premiums and multiple brand extensions beyond its initial MAC computers. GE Health, through its R&D and savvy acquisitions, built a compelling brand with huge scale versus niche competitors. Service, sales and pricing advantages result. Its scale buys market protection as well, as many start-ups exit with a GE acquisition. And who, as a TOM’s Shoes employee, wouldn’t feel proud, loyal and excited to go to work? But how do we measure a great brand and compare brands’ relative strengths? What levers must those who manage brands move through their actions and investments? Deborah Macinnis of USC described three factors creating brand admiration in her webinar for Marketing Science Institute. The talk introduced Macinnis’ new book Brand Admiration: Building a Business People Love….
Disney’s forward-looking business model innovation
Disney’s recent decision to restrict products advertised on its child-focused media properties might not appear to be business model innovation in the classic sense. But it is. With that one decision, Disney is redefining how, where, and why they will do business with other companies, and offering a leading-edge value promise to consumers. In reading societal tea leaves correctly and taking bold action, Disney will advance its financial and social value. Starting in 2015 Disney will restrict advertising on its child-focused TV channels, website and other media properties to brands that meet a strict new set of federal nutritional standards. The decision will reduce Disney advertising revenue from brands like Capri Sun™ drinks and Kraft Lunchables™, foods that may be fun to eat but not good nutrition. Concurrently, Disney will reduce the salt content of meals served at its theme parks and engage…
With less shine, what will happen to Apple’s performance?
How will loyal Apple customers react to Apple’s first public supplier performance report card? Recent news about abuse of labor hours and environmental standards by some of Apple’s Asian supply chain partners might lead the loyal and merely satisfied to shop elsewhere. After all, loyalty, past satisfaction with purchases and implicit expectations about corporate behavior are woven together in a rope that can propel or, in Apple’s case, choke off future growth. About loyalty, satisfaction and expectations Customer satisfaction measures, “Did the product or service I purchased meet my expectations?” If it did not, once satisfied customers become dissatisfied, shop elsewhere in the future and, depending on the magnitude of dissatisfaction, encourage others to do the same. Customer loyalty is more than very high levels of satisfaction. A disappointed loyal customer gives a brand a second chance following any disappointment. Most of the…