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Saturday, September 25, 2010

Week 4 - Marketing Environment

EssenceCommunications Inc. is one of the corporations that target the African American market.  The reason for Essence's strong performance, despite a weakening market condition has to do with its target market.

In the 1990's Essence Communications put in place a market research strategy designed to bolster the firms insistence that advertisments targeting minority groups were a good investment.  To this day, the firm has a focus group of Essence readers who complete a extensive survey about what types of products and services they purchase.

During 2001 one of the biggest changes in the landscape was the ascension of ethnic media.  Bouyed by the growing number of wealth of their constituents, ethnic media outlets, they began to catch up to their mainstream rivals.

Wednesday, September 22, 2010

Corporate Irresponisibility

Hewlett Packard is an example of a company behaving poorly.  In 2007, Hewlett Packard admitted to hiring private detectives to illegally obtain the personal phone records of board members suspected of leaking company secrets to the media.  Five people were charged.

Country of Origin

Today, I wore a black blouse and a printed pattern skirt that was made in China. 
The cost of making the clothes in China are cheaper then the United States.

Wednesday, September 15, 2010

Week 3- Ethics & Social Responsibility

Essence magazine recently hired its new fashion director who happens to be white. Elliana Placas, Essence's new fashion director, has an impressive resume, and has worked with a number of mass-selling publications including: The Oprah Magazine, Us Weekly, etc. Yet, despite her credentials, Elliana's hiring garnered a viscous reaction from many of Essence's loyal readers as well as industry professionals. Essence has always had an African American fashion director, and few expected this to change.

Immediately following the announcement, Essence's former fashion editor, Michaela Angela Davis, launched a verbal attack against the hiring. In her blog, Ms. Davis writes "It is with a heavy, heavy, heart I have learned that Essence magazine has engaged a white fashion director. This hurts, literally, spiritually. If there were balance in the industry, if we didn't have a history of being ignored and disrespected, if more mainstream fashion media included people of color before the ONE magazine dedicated to black women 'diversified', it would feel different."

After the appointment, several African-American commentators accused Essence of robbing a black woman of a rare job. As they note, for the past 40 years, Essence has been the one place that has championed African American employment, and questions remained whether this history is in jeopardy.

Has Essence ignored its proud history by hiring a non African American fashion director? Would it be ethical or Essences social responsibility to fire her or let her go?

Friday, September 10, 2010

Week 2: Strategic Planning

Ebony and Jet Magazines who are owned by the Johnson family are the competitors of Essence magazine. In 2009, both magazines became casualties of the declined of the magazine industry. They had some of the same goals as Essence however; they failed to prepare for the changing world around them. The thing about Ebony and Jet is that much of their financial demise could possibly have been averted. If management had taken stronger steps to adjust to the advent of the Internet, perhaps they could have remained profitable.


Essence on the other hand took note of the trend long ago, as they invested heavily in revamping their online business model. Since then Essence has been moving forward with music festivals, this includes Essence Hosiery, Essence Eyewear, Essence books and their pride and joy the Essence Awards which honors African-American men and women. They now have one of the strongest black news websites in America. Ebony and Jet didn’t seem to follow the lead of Essence, still holding onto the same old way of doing business that has worked for the past 40 yrs.

Talk about strategic planning, Essence Magazine was acquired by Time Warner, which may have given them a competitive advantage. Ebony Magazine did have the option of raising additional funds from the public to finance their multimedia expansion, but they did not seize this opportunity.

Friday, September 3, 2010

Week 1: History and Mission Statement of Essence Communications, Inc.

"It's not that often that a Black woman can pick up a magazine that uplifts her!"

Essence magazine was launched in 1970 and grew out of a conference for aspiring African-American entreprenuers known as the Hollingsworth Group.  The group consisted of Lewis Smith, Cecil Hollingsworth and Jonathan Blount.  Their mission was simple,  to create a magazine that celebrates, empowers, and inspires Black women to be bold and beautiful.  For four decades ESSENCE has had the extraordinary privilage of telling the stories of Black women's lives.  Since 1970 they have made tremendous economic, social, cultural and political strides together.