Casa del Libro

The platform implemented by Casa del Libro in order to offer the clients an online service to buy books was not as good as the company was expected.
With the beginning of operations of AOL in the Spain market, Casa del Libro made an agreement with this ISP company in order to develop this online initiative. The new CEO hired in 2001, found that the platform could not satisfied Casa del Libro needs because the consultants could not use this tool effectively.

What would be your decision? Stick to the previous developed UNIX platform? Or switch to the new Microsoft one?

Having in mind that Casa del Libro was facing economic problems and that cost control and austerity were priorities; my decision would be to stick with the previous developed UNIX platform. Even though the new platform could be cheaper, the investment done in the previous platform would be difficult to recuperate. There will be sunk costs that the company has to calculate in order to take the decision.
I will also suggest to Casa Del Libro to study the possibility of, with AOL or a third party, fix the actual platform in order to solve the mistakes done in the design phase.

Which are the most relevant criteria for you to make the decision?

Before making the decision the company has to:
· Study the possibility of fixing the actual platform: Evaluate if there is something the company or a third party can make in order to fix de actual platform and the costs in which they incur if there is the possibility
· Calculate the sunk costs: Because there are costs that cannot be recover after incurred, in order to make a decision the company must take them into account.
· Evaluate the new investment and how many books they need to sell in order to recuperate the money made in the investment in the first platform as the investment made in the second platform.
· Study and review the new platform in order to be sure it will work: The previous CEO for sure was also convinced about the feasibility of the AOL platform. Therefore the company must study the convenience and the capability of the new platform.
· Evaluate other alternatives: Look in the market for more alternatives, evaluate the future and if there will be a new platform that is going to be launch in the next months. Maybe the company can wait in order to have a better platform.

Tesco´s most valuable asset

Through its slogan “Every little helps”, Tesco has demonstrated that customers are its most valuable asset. This successful international grocery and retail chain has been always looking for customer´s loyalty and with the help of technology, Tesco has created and implemented different strategies to earn long term relations with customers.
In 1995, Tesco launched its Clubcard, a program that enables the customer to receive “something back” or a benefit for his/her purchase. Because of technology, with this card, Tesco can have an insight into shopping habits of its customers. Through the data capture by this card, and consequently knowing its customers´ preferences, Tesco can concentrate its marketing expenditures by reducing prices in significant items and evaluating promotions, among others.
Having Teradata, a data warehouse solution, as its partner, enables Tesco to have all the information of all the company. With this service, Tesco can have organized information of all the business in their 13 countries and manages its stock more efficiently, its suppliers, customers and employers.
Another action that Tesco has made with the help of technology is the development of its internet site. They just don´t say that they have the best prices; in their internet site you can compare prices with other stores. Additional to Tesco´s goods, in its site, customer can have access to other Tesco´s services such as: entertainment, digital, finance, insurance and telecommunication services. And moreover, customers can ask for delivery of their purchases.
These are just some examples on how Tesco takes advantage of technology and uses it to create strong relationships with customers. Technology provides information and is the bridge that allows Tesco reach its customers, its most valuable asset.

Is it feasible to turn Menéame.net into an economically sounding project?

Menéame.net is a community in the web for people to share information. This information is display in the page depending on the readers’ votes.
Menéame.net can be converted in an economically project by advertisement or donations.

One way of advertising could be through Google Adsense, a tool that puts appropriate ads in the company´s or people´s sites. By valid clicks and impressions on the ad, the advertiser pays a fee to the owner of the site.

There is also an advertising opportunity with Chitika. A tool similar to Google Adsense, it differs from it in the way Chitika only displays ads if you have entered to the site by a search engine. This tool shows ads related to the topic searched and also has a search engine for the reader to use without going out from his/her webpage.

Another way of advertising could be through sites that pay Menéame.net a commission for all valid transactions referred. Sites as Amazon and LinkShare, among other, do this business.

Donations could also be another source of funds for Menéame.net. People know that the main purpose of this site is “educational and technical divertimento”, that´s why some readers or visitors could voluntary contribute by giving funds.

Finally, other sources of earnings such as fees for getting or giving karmas, for posting articles, among others, may have to be studied in deep in order not to lose popularity. Advertisement and donations may Menéame.net be an economical project.

My advice to a brand in order to deal with its PR disaster

In order to grow, companies may search and evaluate different and new alternatives to send the right information to the right customer. Since many customers are using technology to get information about a company´s products and services, companies may not have much choice but to have an active presence in the internet through different methods.

One method that is used nowadays is the blog, a space where companies and customers interact. Rather than merchandising a product using a blog, a company with this tool has the benefit of having a direct conversation with its customers. In the blog the information goes in two ways: from companies to customers and from customers to companies.

I agree to the use of a blog for the anti aging cosmetic “Peel Microabrasion” because is a way to distribute information and have contact with the customers while marketing the product. Franche Vichy Cosmetics can use the blog to answer doubts, give more information about this and other products, make comparisons, among others, while getting feedback, questions or comments from current or potential customers.

My advice to the brand in dealing with the PR disaster is to apologize to its clients because Franchi Vichy Cosmetics was not transparent while launching the campaign in the blog. In order to send the information to the right people, the company must send the message through the same channel in which it made the mistake.

To regain the lost trust because of this error, I would give the following advices to the company: the person who is going to write the article has to identify him/her, i.e. full name, e-mail, address, telephone. In the communication the company cannot tell the customers that the reason of opening a dialogue with users is “because we knew that this product is new and that it can create doubts”* as that message is assuming that the product´s instructions are not clear or as effective as they should be. Vichy Cosmetics cannot try to give more arguments for the mistake, just accept that the company made a mistake and that it is taking all the measures for this not to happen again. Since the blog is a space to have an open conversation with customers, my advice is not to put limit of time for “reactions, negative criticism or other ideas”, as the company did. The blog must be forever open to the customer´s thoughts, comments or feelings.

Even though the mistake was made by the advertising agency, which I strongly suggest to change, the Franchi Vichy Cosmetics must apologize its clients through the same channel used in making the mistake to be sure the same people who saw the error see the excuses. After this, the company can continue using the blog to have open conversations with its customers and to merchandise its products.

*Case: France Vichy Cosmetics: Blog or not to blog?, January 2006.

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