...(Compete-background, developing the marketing program and playing compete). 2) What students should know? Student should know about Industry, Market, Company, Product, Regional and Seasonal Sales Fluctuations. This report will help students in preparing sales and marketing strategy. Assume that your company Renaissance Electronics is one of up to five firms operating in an industry that produces and markets state-of-the-art consumer electronic products. Then, you should maintain unique strategy by product by region. This guide gives nine combinations of strategies by product by region. The Compete simulation is very challenging and uncertain game. Each company begin playing compete game with their custom design strategies and makes decisions accordingly. The good decision will result company in healthy condition (High earning per share, less inventory carrying cost and high market share by product by region.) The bad decision will lead company into crisis (Loss of market share by product by region, low inventory turnover and significant drop in earnings per share). The environmental situations give you an idea in preparing sales and marketing strategy. But, decision should be made...
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...version of Marcel’s family name and hence was adopted as the logo for all of the company’s products. Bic is well known for producing and manufacturing stationery products, razors, lighters, water-sports equipment, services with promotional products and phones. The company is located in more than 160 countries worldwide and employs over 8400 employees. The Bich family owns 40% of Bic stock and controls 55% of its voting power. Bic’s vision is “we offer simple, inventive and reliable choices for everyone, everywhere, everytime.” Their consumer range therefore, stretches from offices to small children, encompassing ‘everyone’. In order to satisfy this wide spread, Bic tries to gain a balance between reasonably high quality and reasonable price. In performing a strategic analysis of the company, we hope to evaluate its current position and make recommendations of how they can improve in the future. 1.0 – HISTORY: 1945: Marcel Bich bought an empty factory in Paris with his partner, Edouard Bouffard. Bich had substantial knowledge of the writing instrument trade having previously worked as a production manager for an ink maker. Together they started producing fountain pen parts and mechanical pencils, and in 1950 Bich purchased the patent for ballpoint pens. This led to the creation of the disposable pen. 1954 – 1957: the Company entered into foreign markets, such as Europe and South America, by creating subsidiaries and acquiring companies...
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...marketing influences in order to create a positive effect to their customers. These influences involve product influences, price influences, distribution influences, and promotional influences. In this paper, I will use my personal purchase experience to describe how important these marketing influences are. “Beautiful Life” is one of my favorite restaurants. The reason I love it is not only because they are successfully using marketing influences to affect their customers and making a considerable profit, but also they given me a good impression. In other words, they successful impacted me. It could say “Beautiful Life” is a paragon of using marketing influences to impact their consumers’ decision making process. First of all, “Beautiful Life” restaurant very care about their product influences. As a restaurant, cuisine is their main product. “Beautiful Life” select high-end strategy. Their cuisine is traditional Chinese food dishes. Compare with many fast-food Chinese restaurants who care about the speed and quantity of preparing a dishes, “Beautiful Life” carefully prepare every dishes. They paid high salary to hire many high-level experienced chefs and select the best food materials, by this way to prepare the most delicious dishes. Furthermore, their cuisine not only tastes good, but also has beautiful appearance. This is also meet the traditional high-level Chinese cuisine’s requirement, which is the dishes should have pleasant taste, seductive fragrance, and a beautiful...
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...although they are similar they still operate quite different to each other. Monopolistic competition is defined as the structure with many small firms selling products of similar kind, therefore lots of choice and lots of range which means that there are lots of substitutes. Due to the fact that there are lots of substitutes price plays an important role; if a firm has established some sort of brand name or store name it will be able to charge a slightly increased price, but yet a very high increase in price will result in decrease of its market share. As firms have a very limited control on price to gain more consumers firms are involved in strong non-price competition of quality, advertising, packaging, promoting brand names, etc… To enter into a monopolistic market is relatively easy as there is no established market. Examples of this market structure include restaurants, hotels, clothing, shoes, bakeries, etc… Consumers of monopolistic competition gain very low prices because of the increased competition between producers who use price and non-price methods to gain more customers; producers have little control over price. Producers have to have a very good standard of quality as there is lots of competition so...
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...DIAMOND-WATER PARADOX: The apparently conflicting and perplexing observation that water, which is more useful than diamonds, has a lower price than diamonds. This paradox was proposed by economists in the 1800s as a means understanding the role utility plays in the demand price of a good by differentiating between total utility and marginal utility. The diamond-water paradox poses the perplexing observations: Even though water is obviously important to human activity (life cannot exist without water), the price of water is relatively low. Alternatively, diamonds are clearly much less important to human existence, but the price of diamonds is substantially higher. In other words, the utility obtained from water is obviously very great, while the utility obtained from diamonds is substantially less. The key question that arises is: Why are diamonds so much more expensive than water? Total and Marginal Insight into, and clarification of, the diamond-water paradox results by differentiating between total utility and marginal utility. Total Utility: This is the overall satisfaction of wants and needs obtained from consuming a good. That is, total utility is the accumulated amount of satisfaction, or the total value, generated by several units of a good. Marginal Utility: This is the extra satisfaction of wants and needs obtained from consuming one additional unit of good. That is, marginal utility is the incremental satisfaction generated by, and the value of, a single...
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...that demand consists of two factors: taste and ability to buy. Taste, which is the desire for a good, determines the willingness to buy the good at a specific price. Ability to buy means that to buy a good at specific price, an individual must possess sufficient wealth or income. Both factors of demand depend on the market price. When market price for a product is high, the demand will be low. When price is low, demand is high. At very low prices, many consumers will be able to purchase a product. However, people usually want only so much of a good. Acquiring additional increments of a good or service in some time period will yield less and less satisfaction. As a result,demand for a product at low prices is limited by taste and is not infinite even when the price equals zero. As the price increases, the same amount of money will purchase fewer products. When the price for a product is very high, the demand will decrease because, while consumers may wish to purchase a product very much, they are limited by their ability to buy.The curve in Figure 1 shows a generalized relationship between the price of a good and the quantity which consumers are willing to purchase in a given time period. This is known as a simple demand curve. Supply Willingness and ability to supply goods determine the seller’s actions. At higher prices, more of the commodity will be available to the buyers. This is because the suppliers will be able to maintain a profit despite the higher costs of production...
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...MGMT 485W September 22, 2013 Strategic Mapping The automobile industry is a very large and diversified industry with many pros and cons to joining. By using Porter’s Five Forces we can better analyze whether or not becoming a part of the automobile industry is a good idea. The threat of new entrants to the automobile industry is very low due to their sources of entry barriers. Already in the industry are many well established names that carry brand loyalty to many of their consumers. With economies of scale, automobile purchases are not usually affected. People will always need vehicles no matter what the economy is doing. There are many large manufacturers already and each contains many of their own product differentiation. Toyota has cars, SUV’s, vans, and even a luxury line through Lexis, and that is just one of the many already well-established names in the industry. The capital requirements are really high. It takes a lot of capital to start and build a new name to the automobile industry. Even manufacturers that have been in the industry for a long time, such as Chrysler and GM, are realizing the struggles with maintaining the high costs of staying in the automobile industry. Switching costs are low. Because automobiles are priced competitively, if a consumer no longer likes Toyota than it is not difficult or costly to switch to a Ford automobile. Accesses to distribution channels are very easy to use. Because most automobile industries use trucks, trains, and planes...
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...Q2 PRICING POLICY Pricing policy refers to how a company sets the prices of its products and services based on costs, value, demand, and competition. Managers should start setting prices during the development stage as part of strategic pricing to avoid launching products or services that cannot sustain profitable prices in the market. This approach to pricing enables companies to either fit costs to prices or scrap products or services that cannot be generated cost-effectively. Through systematic pricing policies and strategies, companies can reap greater profits and increase or defend their market shares. FACTORS INVOLVED IN PRICING POLICY The pricing of the product involves consideration of the following factors: (i) Cost Data in Pricing: Cost data occupy an important place in the price setting processes. There are different types of costs incurred in the production and marketing of the product. There are production costs, promotional expenses like advertising or personal selling as well as taxation, etc. They may necessitate an upward fixing of price. For example, the prices of petrol and gas are rising due to rise in the cost of raw materials, such as crude transportation, refining, etc. If costs go up, price rise can be quite justified. However, their relevance to the pricing decision must neither be underestimated nor exaggerated. For setting prices apart from costs, a number of other factors have to be taken into consideration. They are demand and competition. Costs...
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...first one is the degree of actual and potential competition, which consists of the rivalry among existing firms, threat of new entrants, and the threat of substitute products. The second one is the bargaining power of input and output markets; made up of the powers of buyers and suppliers. Together these five forces can help predict the industry’s profitability and be able to classify the important factors of Colgate- Palmolive. Within the five forces there is a high and low end that must be applied to each of the forces to determine the volatility and to what extent each force affects a firm within the industry. These five forces help an investor understand how and by how much, different factors that could happen in an industry would affect the firm. The following table shows a summary of the highs and lows within the personal product industry. Personal Product Industry Rivalry Among existing firms - high Threat of new entrants - low Threat of substitute products - high Bargaining power of buyers - high Bargaining Power of suppliers – low Rivalry among Existing Firms “In most industries the level of profitability is primarily influenced by the nature of rivalry among existing firms in the industry” (Palepu & Healy)....
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...present in 164 countries. Since 1987, around 30 billion cans of Red Bull have been consumed, more than 4.6 billion in 2011. The responsibility for the success of the world's No. 1 energy drink is shared by the company's 8,294 employees around the world (compared to 7.758 in 2010). The Red Bull headquarters are based in Fuschl am See, not far from Salzburg, Austria. [http://www.redbull.com/cs/Satellite/en_INT/How-it-all-started/001242939605518?pcs_c=PCS_Article&pcs_cid=1242937556879] The Target Market Red Bull, who is originally from Austria where it is still produced, distributed their energy drink in over twenty countries. Countries like USA , New Zealand , South Africa , Eastern and Western Europe . So it would be not very useful to restrict the target market to the geographic areas as well as the psychographic segmentation for the targeted consumer that’s because for a product like Red Bull it would be far to narrow as it cuts across lifestyles, demographics and socio-economic boundaries. So the best solution would be to set the target market as a behavioural segmentation. The reason for that decision is because in a behavioural segmentation the individual’s relationship with the product and the use and benefit sought from the product. Red Bull is not...
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...PRICE DISCRIMINATION Submitted By: S Date Abstract The aim of this research was to investigate the consumer’s buying behavior related to product differentiation. The report is comprised of three sections. The first section contains the introduction and background about the topic chosen is Product differentiation, the second sections contains the source of reports i.e. from where the data is collected and the last section belongs to the analysis, statistics and summary of the survey which is conducted by the researcher. Dedication A journey of thousand miles Begins with a single step But for that single step, One has to be motivated. This humble effort is dedicated to my sweet Mother & Great Father Who motivated me for That step and has been Guiding me to achieve The heights of an ideal life. Letter of Transmittal Project supervisor & course instructo Respected Ma’am, This letter is a response to the report “Price Discrimination”. The research is conducted to find the impact of price discrimination in our country with respect to the world. This is something which would take the rights of the people belonging to lower class to live in this world. Through this report we can create some awareness and at a snail’s pace we’ll absolutely reach to a conclusion which would b in our favor. Sincerely, Muhammad Najam Absar Taha TABLE OF CONTENTS i. Abstract…………………………………………………………...2 ii. Dedication……………………………………………….......
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...Marketing We sell low and high tech technology products in order to appeal to as much of the market as possible. As stated above, Daze is our currently low tech product. Dot and Dg are currently our high tech product. At year one, Daze is our high tech technology product, because the specifications of Daze are on the higher end of the buying criteria, the price is set at $39. The high price creates high sales, as the demand is high. And also our market share is at 15% which is not bad. Dot was released in Year 2 and it was a very high tech product. On the other hand, Daze is still in high tech market but not high end product, then we decreased its price to $38. Out strategy is to released Dot a little further from the buying circles and let it to get to our ideal spots in Year 3 perfectly. As we predicted, Dot became a very high tech with a high end product and the price was set at $45. Then we follow the same strategy to release Dg at Year 4 and expect it to be a cutting edge product, coming in along the higher end of the buying criteria in Year 5. And finally, Daze become a high end low tech technology product. The price is set at $45 and due to a miscalculation. We set the price too high because we were thinking to increate our profit and sales by a high price. Our Marketing Strategy so far has been to increate customer awareness by increase promotion budget. This has allowed customer awareness to rise from 55% in Year 1 to 100% in Year 4. To improve our position, we...
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...vision statement communicates both the purpose and values of the organization. For employees, it gives direction about how they are expected to behave and inspires them to give their best. Shared with customers, it shapes customers' understanding of why they should work with the organization. Bowman’s Strategy Clock In many open markets, most goods and services can be purchased from any number of companies, and customers have a tremendous amount of choice. It's the job of companies in the market to find their competitive edge and meet customers needs better than the next company. So, how, given the high degree of competitiveness among companies in a marketplace, does one company gain competitive advantage over the others? When there are only a finite number of unique products and services out there, how do different organizations sell basically the same things at different prices and with different degrees of success? This is a classic question that has been asked for generations of business professionals. In 1980, Michael Porter published his seminal book, "Competitive Strategy: Techniques for analysing Industries and Competitors", where he reduced...
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...Cadillac Automotive Market Structure CADILLAC AUTOMOTIVE Cadillac Automotive is a U.S based automobile manufacturer that manufactures luxury vehicles. The company is owned by General Motors. Cadillac originally used to make carriages. The company sells in more than three dozen countries with its major operations centered in North America. It is known to be the second oldest automobile manufacturer in U.S. after GM and Buick. The industry Cadillac operates in is highly lucrative and money making (SWOT analysis of General Motors, 2013). The luxury cars do not make money by mass production rather by selling on premium prices. Here is the analysis of the industry Cadillac serves in and a discussion of its market structure (Automotive Strategy, Planning & Analysis: IHS Automotive, 2013). MARKET STRUCTURES The market structure tells the way business is done in an industry. The market structure can be of four basic types. A market may have strong government regulations or no government intervention at all. Also the market structures differ on the basis of companies in an industry. Following table describes how automotive industry differs from other industries and what market structure it has. Cadillac Automotive | Oligopoly | Perfect competition | Monopoly | Monopolistic Market Structure | Industry: Automobiles * There are multiple automobile manufacturers * Some of the major players are GM, Ford, Toyota, Honda, Ferrari, Lamborghini, and BMW. | The oligopoly market...
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...international markets such as China. This report analyses and develops the foreign markets for high end fashion. A company has been set up is called Ted Maker Ltd. The company is looking into investing in overseas with its business. The company is already an established company which sells accessories in the UK. This report will seek to develop whether or not the company should open a store overseas. With competitors opening new stores and an increase in new store development, competition in the market is getting high. This indicates that how critical it is to the chain to expand its product lines and operations, in order to advance a competitive strategy to expand the financial attainment in the high fashion industry. The report will be seeking to identify important facts and figures around the business to recommend the best course of action to expand the chain. This report seeks to provide an analysis of the luxury accessories store by undertaking a strategic audit. The report will consider going on to any feasible strategic possibilities in worldwide expansion. 2.0 Situational analysis 2.1 Macro and Micro Environment According to Bradley (2005), Pestle analysis is a measurement means to evaluate the environment surrounding the establishment (Bradley, 2005) Political Austerity in the UK has mainly impacted the UK low income market with low wages and fall in disposable income. The high taxes have hit the middle income market so the store will need to consider the consumer...
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