Quoted – Microsoft Opens First Retail Store – Brandweek

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Microsoft has jumped into the retail arena and opened its first store in Scottsdale, Ariz., featuring interactive technology and a sleek modern design. This is the first of several planned stores for the software giant, the next opening on Oct. 29 in Mission Viejo, Calif., and is being celebrated by the company as an opportunity to connect with customers and elevate the Microsoft brand. But some analysts see this move into retail, and even the design of the stores, as derivative of archrival Apple.

Microsoft is emphasizing the personalization that the new stores will offer, with consumers able to customize their hardware with external “skins” and create an original ring tone for their Windows mobile phone. When a customer purchases a computer, they will have a 15-minute session with one of the employees to get set up their applications, passwords and personal preferences. The store includes a Microsoft Answers Suite, where technical advisors offer assistance to patrons with tech issues.

“The idea of customizing a product on a mass scale, there’s a branding experience about that and there’s a connection with the customer—all that stuff is usually good,” said Scott Testa, professor of business at Cabrini College. But Testa supports Frankel’s outlook on Microsoft’s originality as a brand: “Microsoft copies everything from Apple, so why wouldn’t they copy their stores?”

Testa believes that in opening stores when it has, Microsoft followed the company pattern of waiting until something was “tried and true” before jumping in. Nonetheless, he believes that entering the retail arena will be a good thing for Microsoft, and that it is better late than never.

“I don’t think they see it as a big profit driver. I think they see it as a brand-building experience and marketing experience more than anything. This will be a grain of sand on the whole beach of Microsoft’s revenues and operations,” said Testa. “But from a branding perspective it makes a lot of sense. The timing’s good, they get some press for the stores, Windows 7 is coming out and the holiday season is coming up. It makes sense.”

http://www.brandweek.com/bw/content_display/news-and-features/shopper-marketing/e3i834106c352ea8687e4f54f2a9dc07fc1

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Quoted – Amazon offering Private Label Products – ECommerce Times

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Quoted – Amazon offering Private Label Products – ECommerce Times

Amazon is raising hackles among some of its partner manufacturers by cutting out the middleman with its new AmazonBasics line of consumer electronics products. Amazon is attaching its own branding to inexpensive cables and blank DVDs at the moment, but it plans to expand the line of offerings soon.

Offering a private label is a smart move for any retailer, said Scott Testa, business professor with Cabrini College.

“Private-branded items generally have higher profit margins,” he told the E-Commerce Times, pointing to private label products from retailer Best Buy (NYSE: BBY) More about Best Buy as an example.

Amazon has benefited from decades of watching as other brand names have outsourced the manufacturing process while maintaining control of the customer Boost customer satisfaction + retention with Salesforce.com Service Cloud 2. Click to learn more. — Testa cited Dell (Nasdaq: DELL) More about Dell as an example.

Amazon’s fundamental business model — as aggregator of other manufacturers’ products — may pose some challenges for the retailer.

“No manufacturer wants to see a retailer coming out with its own private label goods,” Testa explained. “It is the retailer who will have the best leverage with the clients.”

In the case of Amazon, that leverage is huge, he added. “For all intents and purposes, a retailer like Amazon is perfectly able to cut out the middle man and feel few ramifications.”

http://www.ecommercetimes.com/story/Amazon-Links-Its-Brand-Image-to-CE-Accessories-Line-68173.html?wlc=1253703004

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Skittles Cozies Up to Social Media

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Skittles Cozies Up to Social Media

Skittles Cozies Up to Social Media

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