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VertiCast Media Acquires CVM-TV from AIC Barbados

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AIC Barbados Limited (“AICB”) announced the completion of the sale of CVM Television Limited (CVM-TV) to VertiCast Media Group Ltd. (“VertiCast”). Upon closing, CVM-TV will become a subsidiary of VertiCast. Purchased by AICB in 2006, CVM-TV is one of two 24-hour free-to-air broadcasters in Jamaica providing islandwide coverage.

Mr. Michael Lee-Chin, Chairman of AIC Barbados Limited, expressed that “Our mantra is ‘prosperitas cum curitate’ which means ‘doing well by doing good’.  CVM TV is an essential part of the fabric of Jamaica and we have been privileged to steward it over these past several years.  We believe VertiCast is the perfect fit to carry on CVM’s expansion regionally.”

CVM-TV adds reach and diversification to VertiCast’s existing broadcast network that includes the regional sports channels CSport and CSport2. The acquisition creates significant value and strengthens VertiCast’s revenue base by providing national reach for its content and the opportunity to tap into the national advertising market across Jamaica.

Olly McIntosh, VertiCast President & CEO, expressed that, “VertiCast’s acquisition of CVMTV is another step in our strategic vision to create a truly regional media company with unprecedented regional and intra-island reach. CVM-TV creates significant operational and strategic value for VertiCast, allowing centralized distribution of multiple channels over-theair, on cable television and through its recently launched app.  In the coming days we will announce immediate, unprecedented enhancements to CVM-TV programming.”

VertiCast broadcast rights includes FIFA World Cup Qatar 2022, England’s Premier League, the NFL, all national team football from Europe and EURO 2024/2028 across the Caribbean.

CVM-TV programming broadcast across Jamaica includes its staple morning show and evening news as well as ISSA Schoolboy Football and the Jamaica Premier League.

Shamena Khan, CVM-TV CEO, expressed that “having transformed CVM-TV to a fully HD broadcaster that is a leader in the media space, we depart with enormous pride in the legacy of developing a transformative, committed and talented team of individuals and a profitable media entity. I thank the staff of CVM for their efforts and contributions over the years.  We are certain that VertiCast will continue to lead CVM’s expansion with its strong and experienced management team.”

The transaction has received the approval of the Broadcasting Commission of Jamaica (BCJ). VertiCast was advised on the transaction by JMMB Securities Ltd., Granderson Des Rochers, LLP (Los Angeles) and Samuda & Johnson, Attorneys-at-Law (Jamaica).

 

Will Oliver Mcintosh’s Verticast Media Group Acquire CVM TV From Michael Lee Chin? Part 1

How Does CVM TV Fit Into Oliver Mcintosh’s Grand Plan? Part 2

How Much Is CVM TV Worth?..Part 3

 

Business Insights

Prime customers – Grubhub Expanding Partnership with Amazon.com Inc.

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Grubhub, the struggling US meal-delivery business, announced May 30 it was expanding its two-year-old partnership with Amazon.com Inc. and giving Amazon Prime members free food delivery.

As part of the new deal, Amazon also incorporated Grubhub’s delivery service directly into its shopping app and website, and increased its financial stake in the company owned by Just Eat Takeaway.com NV.

Grubhub Chief Executive Officer Howard Migdal told me this deepened relationship with Amazon will be a key catalyst for user growth and revenue. Prime members are a “good cohort” of customers as they tend to order more frequently than Grubhub’s average customer, he said.

So far there has been an immediate boost: Grubhub’s app downloads jumped 90% in the week of the announcement compared with the previous week, and the number of users opening the app rose more than 9% for two straight weeks, outpacing that of food and grocery peers. That’s according to Bloomberg’s analysis of data tracked by mobile research firm Apptopia.

But this could prove challenging to sustain. While the pace of overall order declines reported by parent Just Eat’s US and Canadian business has slowed in recent quarters, third-party data from market research firms SimilarWeb and YipitData show that the initial 2022 Amazon-Grubhub partnership hasn’t reversed the streak of losses in orders and users for Chicago-based Grubhub.

The company has dropped a significant amount of market share to delivery rivals DoorDash Inc. and Uber Technologies Inc. as they ramp up competition through offerings beyond just takeout meals from restaurants. Yipit’s data shows Grubhub market share fell to 6% in March from 11% in August 2022, with a loss in urban users the most pronounced.

Rivals in recent years have raced to expand the number and types of stores on their sites and improved their technology to let customers bundle multistore orders without additional cost, which Grubhub hasn’t allowed.

DoorDash and Uber, in particular, have enhanced their routing algorithms so their delivery couriers can seamlessly pick up a last-minute drugstore item, drinks from a liquor store, or condiments from the grocery store while en route to grab a restaurant order nearby. These upgrades let the companies “upsell” consumers and advertise relevant items to bundle into their order, helping expand the size of the basket and increase ad revenue from brands.

Making the Grubhub+ subscription free for the 180 million US shoppers who are part of households with a Prime membership could entice those consumers to keep their Prime accounts, which would be a boon for Amazon. But at the same time, it wipes out potential customers for Grubhub’s subscription service — and the revenue they might have generated. That makes the sale of Grubhub, which Dutch parent Just Eat has been considering since 2022, “less likely,” according to Bloomberg Intelligence analysts.

So far, a customer who tries to place a Grubhub order within Amazon won’t find it as easy as described. According to Grubhub, users can visit a dedicated website to start a Grubhub order; or they could be directed to that site through a variety of paths from Amazon.

On Amazon’s mobile app, the Grubhub button is hidden within the “Groceries” tab, below buttons for Amazon Fresh, the grocery delivery service, and Amazon’s Whole Foods. Alternatively, users can type “Grubhub” in the Amazon search bar to access the Grubhub banner. At least two more clicks are needed to launch the restaurant ordering interface in an in-app browser window, which makes the experience foreign to the Amazon app.

This makes the integration more of a bonus than a feature of convenience. Whether the deal can effectively convert new users to loyal Grubhub customers remains to be seen.

Source Natalie Lung Bloomberg

 

 

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The Rise of Aldo: A Case Study in Effective Branding

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Aldo Bensadoun,

Early Beginnings and Visionary Leadership
Founded in 1972 by Aldo Bensadoun, the Aldo brand began as a single store in Montreal, Canada. Bensadoun, a second-generation shoe retailer, envisioned a brand that combined quality footwear with affordability, appealing to fashion-forward consumers. His understanding of retail and passion for footwear laid the foundation for Aldo’s future success.

Key Players in Aldo’s Growth
Aldo Bensadoun: As the founder, Bensadoun’s innovative approach to retail and deep understanding of consumer behavior were pivotal. He believed in creating an emotional connection with customers, which influenced the brand’s marketing strategies.

David Bensadoun: Aldo’s son, who later became CEO, continued to drive the company’s vision forward. His leadership focused on digital transformation and global expansion, ensuring the brand stayed relevant in a rapidly changing market.

Branding Strategy
Aldo’s branding strategy revolves around three core principles: affordability, fashion-forwardness, and an engaging customer experience.

Affordability and Quality: From the outset, Aldo positioned itself as a brand that offers stylish, high-quality shoes at reasonable prices. This value proposition appealed to a broad demographic, allowing the brand to capture a significant market share.

Fashion-Forward Approach: Aldo is known for staying ahead of fashion trends. The brand’s design team works to quickly bring runway trends to retail, ensuring that customers have access to the latest styles. This strategy has helped Aldo maintain its reputation as a trendy and desirable brand.

Customer Experience: Aldo places a strong emphasis on creating a positive in-store experience. Staff are trained to provide excellent customer service, and stores are designed to be inviting and easy to navigate. This focus on customer experience extends to their online presence, with a user-friendly website and robust e-commerce capabilities.

Digital Transformation and Innovation
Under David Bensadoun’s leadership, Aldo embraced digital innovation to stay competitive. The brand invested in an omnichannel retail strategy, integrating its physical stores with its online platform to provide a seamless shopping experience. This included initiatives such as:

E-commerce Expansion: Aldo significantly improved its online shopping experience, making it easier for customers to find and purchase products online. This move was particularly beneficial during the COVID-19 pandemic, when many consumers shifted to online shopping.

Mobile Integration: Recognizing the growing importance of mobile shopping, Aldo developed a mobile app that offers personalized recommendations, exclusive deals, and a simplified checkout process.

Case Studies in Success
Aldo’s strategic use of digital marketing and social media has played a crucial role in its branding. For example, the brand has leveraged platforms like Instagram and Facebook to engage with younger audiences, using influencers and user-generated content to build brand loyalty and drive sales.

Sustainability Initiatives: Recently, Aldo has focused on sustainability, launching eco-friendly collections and committing to reducing its carbon footprint. These efforts have resonated with environmentally conscious consumers and have been a significant part of the brand’s modern identity.

Pop-Up Stores and Events: To create buzz and reach new customers, Aldo has utilized pop-up stores and special events. These temporary installations often feature exclusive products and interactive experiences, enhancing brand visibility and consumer engagement.

Conclusion
Aldo’s rise from a single store to a global footwear brand is a testament to visionary leadership, a robust branding strategy, and an ability to adapt to changing market conditions. By focusing on affordability, fashion-forwardness, and customer experience, and by embracing digital innovation, Aldo has maintained its relevance and appeal across generations and markets.

Sources:

​ (HubSpot Blog)​
​ (Map & Fire)​
​ (Fabrik Brands)​
​ (Think with Google)

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The Rise of Hugo Boss: A Journey Through Branding and Strategy

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Hugo Boss, the German luxury fashion house, has undergone a remarkable transformation since its inception, evolving into a globally recognized brand through strategic branding, innovative marketing, and resilience in the face of historical challenges.

Hugo Ferdinand Boss

Early History and Controversial Beginnings
Founded in 1924 by Hugo Ferdinand Boss in Metzingen, Germany, the company initially produced workwear and uniforms. The brand’s early history is marked by its involvement in manufacturing uniforms for the Nazi regime during World War II, a period that remains a sensitive and controversial part of its legacy. Post-war, Hugo Boss was restructured and shifted focus to men’s suits, leveraging Germany’s burgeoning post-war economy to rebuild and expand​.

Key Players and Strategic Transformations
The company’s significant transformation began under the leadership of Jochen Holy and Uwe Holy in the 1970s. They modernized the brand, focusing on stylish, high-quality men’s suits which became synonymous with business success and power. This repositioning played a crucial role in establishing Hugo Boss as a premier name in the fashion industry.

In recent years, the brand has continued to evolve under the direction of Daniel Grieder, who became CEO in 2021. Grieder has driven a bold rebranding effort aimed at rejuvenating the brand’s image and appeal, particularly among younger consumers​.

Branding Strategy: The Dual-Brand Approach
Hugo Boss operates under two primary brands: BOSS and HUGO. This dual-brand strategy allows the company to target distinct market segments effectively:

BOSS: Known for its sophisticated, high-quality business and casual wear, BOSS targets a more mature, affluent demographic. It encompasses the company’s core offerings of tailored suits and refined casual attire.

HUGO: Positioned as a more youthful and edgy line, HUGO appeals to a younger, fashion-forward audience. It includes trendier items and streetwear, often featuring bold designs and contemporary fits​.

Innovative Marketing Campaigns

The rebranding efforts in 2022, under the campaign slogan “#BeYourOwnBoss”, involved a comprehensive overhaul of the brand’s visual identity, product lines, and marketing strategies. The campaign featured a diverse array of high-profile influencers, including Kendall Jenner, Hailey Bieber, and rapper Future, which significantly boosted the brand’s visibility and appeal in the digital age​​.

Case Studies: Digital Transformation and Market Expansion
The “CLAIM 5” strategy introduced in 2021 highlights the brand’s ambition to achieve substantial growth by 2025. This strategy focuses on five key areas: boosting brand relevance, enhancing product lines, leading in digital innovation, optimizing retail experiences, and achieving operational excellence. As part of this initiative, Hugo Boss has significantly increased its digital marketing efforts and embraced data-driven decision-making to stay ahead in a competitive market​​.

Moreover, the company’s investment in digitalization includes the launch of the Hugo Boss Digital Campus in Porto, Portugal, which aims to leverage advanced data analytics and AI to enhance customer experiences and streamline operations​​.

This strategic and multifaceted approach underscores the brand’s ability to adapt and thrive in the dynamic fashion industry, ensuring its legacy and influence continue to grow in the years to come.

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Businessuite News24 International

The “Endless Shrimp” Promotion By Red Lobster Offers Five (5) Key Marketing Lessons

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Red Lobster, the iconic seafood restaurant chain, has filed for Chapter 11 bankruptcy as it grapples with significant financial challenges. The company cited escalating lease and labour costs, heightened competition, and evolving consumer preferences as key factors leading to its current predicament.

This decision comes despite efforts to revitalize the brand, which included promotions like the “Endless Shrimp” deal. However, this particular marketing strategy backfired, resulting in an US$11 million loss in the third quarter of 2023, exacerbating their financial woes.

The “Endless Shrimp” promotion, intended to attract more customers, turned into a costly blunder. It failed to generate the expected revenue and instead led to excessive operational costs.

Customers took full advantage of the unlimited shrimp offer, causing a spike in expenses without a corresponding increase in sales. This miscalculation, combined with existing financial pressures, pushed Red Lobster towards bankruptcy as a necessary step to restructure its debts and seek a more sustainable business model.

Five (5) Key Marketing Lessons:

1. Understand Cost Implications: Promotions must be carefully analyzed to ensure they don’t lead to unsustainable costs. Red Lobster underestimated the operational expenses and customer response, resulting in significant financial losses.

2. Customer Behavior Analysis: Predicting customer behavior is crucial. The promotion attracted heavy users who maximized their consumption, leading to higher costs without proportional revenue gains.

3. Align Promotions with Brand Strengths: Promotions should reinforce a brand’s strengths rather than just attract volume. Red Lobster’s focus on endless deals diluted its brand value and strained resources.

4. Flexibility in Promotions: Being able to adjust or terminate a promotion quickly in response to unforeseen consequences is essential. Red Lobster’s prolonged offer exacerbated their financial situation.

5. Balanced Value Proposition: Ensure that promotions offer value to both customers and the company. The “Endless Shrimp” deal provided disproportionate value to customers at the company’s expense.

These lessons highlight the importance of strategic planning, financial forecasting, and flexibility in promotional campaigns.

During the restructuring process, Red Lobster plans to keep its restaurants open and continue serving customers. The company aims to renegotiate leases, reduce debt, and streamline operations to regain financial stability. This move is crucial for Red Lobster to adapt to the changing dining landscape and remain competitive in the market.

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Businessuite Markets

The LAB Reporting Higher Net Profits Based On Strong Focus On Agency Segment

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Kimala Bennett Chief Executive Officer for Limners and Bards Limited (The LAB) has released the following unaudited financial statements for the three months ended January 31, 2024, which have been prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated results include the subsidiary Scope Caribbean Limited (Scope) whose principal business is the scouting, placement and management of talent while expanding and maintaining a database of quality talent.

The LAB achieved higher net profits when compared to the corresponding period last year. This was based on the strong focus on the Agency Segment of the business for this quarter, as the company continued to build brands. The Agency Segment provides the highest profit margin and as such bolstered the results for the period. The company also implemented cost containment measures, which resulted in a 19.2% reduction in administrative expenses when compared to prior period. We continue to maintain a strong balance sheet and our cash position grew stronger over the period. Our asset base increased, as we reinvested in the business through further upgrading film studio facilities.

Revenue for the three months ended January 31, 2023, was $219.4 million, down 11.4% relative to the prior period. This decline was primarily attributable to a reduction in production during the period due to its cyclical nature. Notwithstanding this, the Agency segment outperformed the comparable period. The revenue achieved was derived from the company’s core business lines: Media totalling $118.3 million, followed by Production with $29.3 million and Agency with $71.6 million.

The company remains fully focused on executing its strategy of diversifying its income, through engaging new clients and the introduction of new service lines. These strategic endeavours are aligned with our company’s expansion strategy into emerging markets, all aimed at fostering sustainable growth, increased revenues, enhanced profitability; while proactively anticipating the evolving needs of our valued clients and enhancing shareholders’ value.

Gross Profit for the three months was $88.9 million, down 3.3% when compared to the corresponding period. Net Profit achieved was $26.2 million, up 295.7% relative to the comparable period. due to higher gross profits from the agency segment and lower administrative expenses. Administrative expenses decreased by $16.3 million or 19.2% in comparison to the corresponding period last year. These decreases are primarily due to reduction in contractor and staff cost.

The consolidated Balance Sheet saw total assets increasing by $119 million or 15.1% to $909.3 million compared to $790.2 million in the corresponding period. This increase in assets is driven by building and film studio facilities improvement and purchases of new production equipment to facilitate future growth.

Current Assets amounted to $731.7 million, increasing by $107.6 million over the prior year, primarily due to a 43.6% increase in cash and cash equivalent. Management continues to maintain tight monitoring and control over receivables. Cash and cash equivalent increased by $142.4 million over the corresponding period last year. Shareholders’ equity grew to $624 million, up from $548.1 million or 13.9% over the corresponding period last year.

The LAB is pleased to report significant progress in our strategic initiatives. We have successfully completed the pilots for two TV/web series, “SEEN” and “Jenna In Law,” as outlined at our last Annual General Meeting (AGM). Additionally, Pre-production for our first feature film, “Love Offside,” is currently underway, with production scheduled to commence in June 2024.

In line with our strategic objectives, we are actively engaging with international networks and digital streaming platforms to secure distribution opportunities for our content upon production completion. This proactive approach ensures that our creative endeavours have a suitable platform to reach global audiences.

For More Information CLICK HERE

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