Ahan Analytics, LLC Thought Blog - Thoughts on making practical use of analytics
Nov
11

Analytic Lessons from Subway’s $5 Footlong Promotion

written by Dr. Duru

Subway’s $5 footlong promotion has become a nationwide hit. In “The Accidental Hero,” BusinessWeek writer Matthew Boyle describes how the promotion grew from just a few franchises in Florida to become a top-10 fast-food brand this year. The story demonstrates how a small, local idea can become a nationwide success. The story also powerfully displays […]

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Sep
13

Product Quality Can Attract A Captive Audience

written by Dr. Duru

This weekend, my alma mater, Stanford University, played football at Wake Forest. I was fortunate enough to make the trip although Stanford was not fortunate enough to win. I was also not fortunate enough to eat lunch before attending the game, paying $9.50 for the privilege of enjoying a small pepperoni pizza and an ice-loaded […]

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Aug
27

Nothing is free in an exchange-based economy

written by Dr. Duru

Barbara Kahn, Dean of the School of Business Administration at the University of Miami, appeared on Nightly Business Report August 25, 2009 to comment on the new book “Free: The Future of a Radical Price” by Chris Anderson. Kahn rightly points out that even when consumers seem to be getting goods and services for free, […]

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Aug
20

Twitter’s “Tragedy of the Commons”

written by Dr. Duru

The “tragedy of the commons” (Garrett Hardin, 1968) is a concept in economics that describes how a group of self-interested individuals can destroy a shared (and free) resource. Hardin’s classic is example is a group of herders who destroy a pasture as each herder maximizes his/her number of grazing cows to make the most use […]

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Aug
1

Disney increases theme park prices despite drop in revenues

written by Dr. Duru

Disney has increased prices at Walt Disney World despite experiencing a drop in revenues last quarter. In its earnings reported July 30, the company had this to say about operating income: “Lower operating income at the Walt Disney World Resort was primarily due to decreased guest spending and lower corporate alliance income recognition, partially offset […]

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Jun
28

First Solar faces pricing challenges

written by Dr. Duru

First Solar (FSLR) talked about its pricing challenges in last Wednesday’s conference call with analysts. The company is having trouble sorting through the various factors slowing demand for their thin film solar panels: for example, lack of credit and financing or competitor pricing. I suspect that First Solar’s sales teams need to do more aggressive […]

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Jun
27

Mass customization in media gains more advertising value

written by Dr. Duru

Bloomberg reports “Loyal ‘Simpsons’ Fans Fetch Higher Ad Rates on Web.” Premiun programming on the Web has gained pricing power due to the scarcity of popular, targeted advertising inventory. In the future, I would look for the industry to find ways of increasing ad inventory and creating more tools for mass audiences to create and […]

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Jun
20

Changing pricing and merchandising strategies in retail

written by Dr. Duru

Stephanie Rosenebloom writes in the New York Times: In Recession, Strategy Shifts for Big Chains (June 20, 2009). Retailers continue to re-engineer the industry to maintain positive profitability. The recession has forced the hand of several major retailers to bring prices and product offerings in-line with the new frugality of consumers.  Luxury retailers are broadening […]

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Jun
18

Webinar: Mind Tricks: How the Brain Reacts to Price-Based Offerings

written by Dr. Duru

This free webinar from the Stanford Graduate School of Business, Executive Education, looks interesting. I hope to post a review soon after attending: _________________ Title: Mind Tricks: How the Brain Reacts to Price-Based Offerings Host: Professor Baba Shiv Date: Tuesday, June 23, 2009 Time: 8:00 AM – 9:00 AM (Pacific Daylight Time) Registration: www.stanfordinnovation.com In […]

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