Spirit Airlines: Operations = The Experience

The New York Times: “Spirit Airlines is ready to shake off its bad-boy streak and grow up a little … the new chief executive, Robert Fornaro, six months into his job, says he is ready to put a new face on Spirit and a new emphasis on customer service. The makeover also includes toning down the frat-boy image, cleaning up the cabins and maybe even getting more of the planes to arrive on time.”

He comments: “There is a big change in terms of focusing on our operations. This is how we want to be viewed: on time, friendly, clean and efficient.”

“Mr. Fornaro … argues that he can improve on-time and complaint ratings without incurring higher costs … By paying to improve operations, he said, the airline would cut down on expenses in other areas, like fees it incurs when it has to reimburse passengers for canceled flights. It would also cut down on overtime needed to pay staff who work longer hours because of delays. ‘If we run a better operation, we’ll have lower recovery costs,’ he said.”

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Made By Cow: Introducing Cold-Pressure Milk

Gizmag: “Made by Cow (MBC) says its alternative cold-pressure approach is a world first, with the milk going from cow to bottle within a matter of hours. The company explains that it is then put under intense ‘isostatic cold water pressure.’ Here, cold water is used to compress both the bottle, which is plastic so as to flex, and the milk inside … MBC reports that ‘bacteria can’t withstand the pressure we subject them to’ and so are eliminated, while the cold temperature of the water reportedly ensures that the process is gentler on the milk’s nutritional profile.”

“MBC claims that the resulting produce is creamier and more vitamin-rich than conventionally processed milk and that it will actually last slightly longer, too, though specifics are not yet available.”

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PS: Ikea Beyond The Basics

Fast Company: “Every few years, Ikea releases its limited-edition PS Collection—a series of experimental products that aren’t intended to supplant its perennial offerings, but rather to add a jolt of energy into its stores … For its 2017 PS Collection, Ikea’s designers chose a theme they call Young Urban Life, delving into new material research, fabrication techniques, and product types.”

“Some of the more idiosyncratic products include a seating piece that looks like the love child of a Papasan chair and a rocker, a sofa that looks like it’s composed of pillows, and a throw blanket that can be worn like a jacket … For the practicality-minded set, there are still a few space-efficient pieces, like stackable storage bins, collapsible side tables that fold away when not in use, and arm chairs that join to become a love seat.”

Henrik Most Nielsen of Ikea: “Ikea is for the many, but the many are different. We’re trying to attract customers who think Ikea isn’t at the front of design. We’re moving from basics to embodying a strong personality and style.”

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Vegan Seats: What’s Next In Luxury Cars?

The Wall Street Journal: “Interior styling, of which seating is the cornerstone, is the second most cited reason why a shopper won’t buy a car—beating out a vehicle’s dependability rating … with rising consumer expectations and auto-maker competition, the once lowly seat is now getting some much needed attention … Some seats offer “lane-departure warning systems that shake a corner of the seat, heating and cooling options, and, in some cases, a massage feature.”

“Cars 20 years ago were all about horsepower, tire width or how fast you could go from zero to 60,” says Ray Scott, of Lear Corp., a seat designer. “Now it’s all about the driving experience, and seats are where the person is spending most of the time.”

“Lear has developed technology that turns the seat into a biometrics scanner with the ability to monitor the occupant’s heart rate and display it on the center entertainment screen.” Tesla “is offering vegan-style seating in its Model X and the new Model 3 SUV due out next year. The option involves seats covered with synthetic leather.”

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Post Pink: Game-Developer Barbie

Slate: “Game Developer Barbie is wearing jeans, sensible shoes (!), and a T-shirt that is both nerdy and kind of cute … She has a laptop that is laptop-colored, because women can actually use tech products that aren’t pink. There are no pictures of Ken or fashion magazines around her workspace, just coffee, headphones, flowcharts—not to mention actual programming books (C++ and C#) and action figures (He-Man!). She still likes some pink, of course; this is Barbie, and there’s nothing wrong with pink.”

“Perhaps most striking, Barbie can actually code … The interface appears to be Alice, an educational programming environment, and the code it’s outputting is ActionScript (or maybe Haxe). Basically, she seems to be making a Bejeweled clone in Flash … The back of her box tells us: Game development involves storytelling, art & graphic design, audio design, & computer programming. Because there are so many aspects to creating a game, teamwork is important.”

“Mattel might consider partnerships to create its own programming tools tied to the Barbie universe. Wouldn’t it be cool if kids could make and share interactive Barbie stories—learning some programming while also having the agency to create their own empowered Barbie characters?”

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The Swiffer Effect: Walmart & Procter Butt Heads

“Wal-Mart, the world’s largest retailer, and P&G, the world’s biggest consumer-goods company, are increasingly butting heads as both try to wring more revenue out of their slow-growing businesses, The Wall Street Journal reports … A battle last year over the popular Swiffer mop suggests the tensions aren’t likely to abate soon. P&G’s consumer research revealed that existing packages weren’t large enough to prompt repeat purchases, and so it upped the number of wipes in a pack, improved the handle and increased the price … Around the same time, Wal-Mart introduced a less expensive store brand, irking P&G.”

“To settle the matter, P&G had to offer a temporary discount on the company’s Swiffer products. Not only did P&G employees worry about lost sales, they believed the store-brand refills were of a lower quality and would stop first-time Swiffer users from sticking with the habit. ‘They sell crappy private label, so you buy Swiffer with a crappy refill,’ said one of the people familiar with the product changes. ‘And then you don’t buy again’.” A Walmart spokesman said: “Our Great Value products provide a quality alternative for customers looking to save money.”

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Amazon Has Bullseye on Target

Quartz: “Target has a supply problem. The discount retailer has too much unsold merchandise on its shelves, and hasn’t figured out how to get all of it to customers quickly. To make matters worse, a new survey shows that two in five Target shoppers are also members of Amazon Prime and among those that aren’t, one in five are considering a membership in the next year.”

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“Target has made some attempts to keep up: Participants in the company’s REDCard credit card program get free shipping on all online orders. ‘I do think we can get more credit for REDCard than we potentially have,’ Target’s chief digital officer told Recode last month.”

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De-Branding: A Shift From Products to Places

Fast Company: “It’s misleading to use a totally different set of qualities—good stories—to sell a product that has intrinsically nothing to do with these qualities. Hiring a top filmmaker won’t improve the quality of your energy drink … You could even say that the better the stories, the more dishonest the companies are being.”

“Here’s where debranding comes into play … the focus will shift … from branded products to branded places: stores and their owners who select and sell the products they like … Back to the traditional shopkeeper responsible for measuring bulk food and acting as an advocate for his products. Back to the real Dr. Browns, Uncle Bens, and Aunt Jemimas. Instead of brands, real people and real tones of voice will become the interface between consumers and products again.”

“And it is totally in line with today’s networked society … increasingly in the Internet age, consumers are comfortable with the idea that everything is interconnected. So what distinguishes brands is less important than what brings things and people together—whether your iPhone can talk to your Prius, for instance, or whether you can read articles from disparate sources in one place, like on Facebook. The brand that screams the loudest no longer commands the most attention; the one that offers something genuinely useful does.”

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Loyalty Cards Pivot: From Discounts to ‘Experience’

The New York Times: “Research … shows that while people say discounts are important, they also ‘overwhelmingly say they want special treatment and offers not available to others in a loyalty program’, says Emily Collins of Forrester Research. ‘They come for the perks, but they stay for the experience’ … Sephora’s rewards program offers free samples and tutorials to loyal customers. It has three tiers, and the top spenders are invited to free closed-door events like Beauty Before Brunch, where they receive makeup lessons, discounts and a goody bag.”

“The samples don’t cost much, but are of great value to customers who want the newest makeup and hair products … and store loyalists often share these discoveries on social media, which draws in more customers. And that’s a crucial part of the equation: making sure customers aren’t just loyal, but also loud. Brands rely on them to spread the word far and wide about great loyalty programs.”

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