...increase the private labels (brand from the retailers) and increase the discount. When you cannot differentiate on the products than you do it on the price. In many markets, this is the most important criteria. In this case, painting is a commodity and it is very difficult to differentiate on the product for commodities. Thus, they will play on the price. 1) DIY - Price sensitive segment - Value : perceived quality = brand DIY Value PRICE SERVICE BRAND mass merchandiser Small shops Mass merchandis * low cost structure * good distribution network * high marketing * mass production (people who know their job) budget * private label -> confidence, proximity DIY buy these products on a non regular basis because they are not everyday products, not FMCG, they are Slow MCG, that a consumer buy every 4/6 years. How this characteristic (SFMG) influence the way the industry brands its products and communicates about the products? What is the impact on the brand and the communication? Customers will forget about the brand. Ex: A survey run for mattresses shows that 30% of the population in Belgium does not remember the brand of the mattress they bought after 3 months. → It depends on the value and implication (linked to the value) BRAND STRATEGY If you want to build...
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...have conducted for small clothing retail industry, the clothing industry is not doing really well in this several years because of the global financial crisis. We know that the global financial crisis has made the customer feel more cautious to spend their money. Growth in industry revenue has been undermined by a decline in prices. Prices have been driven lower by fierce competition within the industry in Australia since there is a lot of new big retailer coming in such as H&M and Uniqlo. Two of them can give a big impact on the small player or big player in this industry since they are quite famous because of their brand image in the overseas. The high value of the Australian dollar has meant that many retailers, especially the larger operators, have been able to purchase stock at significant discounts. However, consumers have scaled back spending at bricks-and-mortar stores, inciting price reductions that effectively nullify any cost savings for operators. Some of the big player in this industry try to an acquisition or acquiring smaller companies to have generate their market share, but even the top four in this industry which are Premier Investment Limited, Specialty Fashion Group Limited, Country Road Limited, and ARJ Group Holdings Pty Ltd generate less than 20% of industry revenue. Comparing the financial data that the client gave us with the industry average, “Prim Clothing” doesn’t really have a big issue cause the figures is not showing a big difference with the...
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...Assignment 1: To Build or Buy Small Business Management Business 402 July 27, 2014 Assignment 1: To Build or Buy 1. Craft a brief strategy for a business concept that would directly compete with the small business you selected. As an entrepreneur one must be willing to take risks and face uncertainty in order to pursue an opportunity and to make a profit (Scarborough, 2012). 7-Eleven is a very successful brand and franchise that is known worldwide. As a frequent patron of this established, an opportunity has been identified to directly compete with 7-Eleven. As a competitor in the convenience store market the establishment would be called G’s Stop N’ Go. As a direct competitor, research is necessary to understand the strengths and weaknesses of 7-Eleven to be able to compete and make effective decisions. From state to state and city to city 7-Eleven’s can be found everywhere are very visible and known. But based on the companies SWOT analysis a weakness that has been identified was the hacking of ATM machines that negatively impacted consumers’ loyalty (7-Eleven, Inc., 2013). FBI has investigated the case and stated that a Citibank server that processes ATM withdrawals at 7-Eleven convenience stores had been breached. ATMs hackings at 7-Eleven stores reflects the company's weak application security system (7-Eleven, Inc., 2013). To take advantage of this weakness, G’s Stop N’ Go would have industry proven application security system that are...
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...Best Buy Corporation - S. Bensen, A. El Haddi, K. Fitzsimmons, A. Hussein, H. Marotske -- UST EMBA [1] “Best Buy Corporation: Strategic Management Analysis” S. Bensen, A. El Haddi, K. Fitzsimmons, A. Hussein, H. Marotske Strategic Management University of St Thomas, College of Business Executive MBA program, Cohort 62 Abstract Best Buy’s news coverage of the last few years has been consistently negative. The company’s performance and reputation suffered greatly. Its Earnings per Share fell by more than 200% in 2012 alone. These negative events were the result of governance problems, a changing market landscape (cloud computing, music streaming, online purchasing, online gaming, etc.) and a significant leadership turnover in a period of crisis. The company’s value stream is in a state of flux and could be said to be a master of none at this time. This paper presents strategies to deal with these problems by creating a strategic road map that will first stabilize Best Buy and eventually put it on a growth path. As a result of our analysis, we recommend that the company employs new strategies that include growing its online business by capitalizing on Geek- Squad’s expertise and exploring an internal fix-it strategy with the development of a compelling mission and vision. Finally, we recommend that BB explore the formation of an alliance with its rivals and leverage opportunities presented by new markets. 1. INTRODUCTION The purpose of this paper is to examine Best...
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...Best Buy is no longer the all-powerful super store that it has been known as the past couple of decades. With today’s rapid increase in e-commerce, it makes it hard for “big-box” stores such as Best Buy to cope with the changing customer preferences. As a result, Best Buy’s 2011 financial performance fell subpar, with a 2.4% revenue decrease, and an overall loss of $1.23 billion. In response to this financial loss, the store is going to close 50 stores and fire 400 corporate staff members (Savitz). This report will provide a detailed internal and external analysis of Best Buy’s operations that have resulted in the company’s current market position. Best Buy’s previous strategy of relying on “big box” stores is being replaced by a new strategy of a higher number of smaller stores. Best Buy plans to open 100 new small stores to replace the 50 big stores that they are closing. Best Buy realized that the big stores were starting to be used for “showrooming”. This allowed consumers to come into the stores and experience the products, only to go online and purchase the product cheaper. In 2011, over 15% of volume sales were taken by internet retailing (Euromonitor). On top of the slipping sales, the expenses of the “big box” stores are not something to be forgotten. Best Buy believes that by 2015 $800 million will be saved by closing the larger stores. Also, the smaller stores will allow for more customer interaction, which Best Buy learned is one of the main reasons the “big box”...
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...Company: Blue Cotton Brands name: Armin Table of Content Business Objective……………………………………………….2 Problem Statement……………………………………………….3 Solution Statement……………………………………………….4 Marketing environment………………………………………….5-6 Customer’s profile………………………………………………...6 Business Objective Our company’s goal is to create superior value in the mind of customers by providing best quality product for the people who can afford it. Our company is providing a T-shirt with the best quality and as we all know quality needs cost so the price of our product is high. The main objective of our business is customers’ satisfaction and that we can get by knowing the need of customers and delivering superior values to them. Our business don’t want to have short term relationship with customers we will see at the long term business relationship with them as we know the loyal customers will never leave you in hard situation which is an advantage for the business, as there are some companies who wants to just deliver the service and get profit they don’t care about the customer satisfaction which costs them to lose customer. Another objective of our business is to create an image in the society as our product is for upper class and our prices are high we need to obtain this objective because if we don’t have an reputation or image of our product we can’t attract as much customers we are targeting and this may cause our company to bankrupt so we need to obtain it, on the other hand it needs time...
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...Search Strategy We believe that Big Skinny should continue to advertise via sponsored search ads. Based upon the Cost per Click model presented to us in Exhibit 4 in the case study, the numbers show that they are able to generate a fair amount of revenue. If we evaluate the data within Big Skinny’s CPC model, we can determine the cost and revenue as follows - Cost = Impressions x CTR x CPC Cost = 42,986 x 4.8% x .54 Cost = $1,114.20 Revenue = Impressions x CTR x Conversion Rate x Revenue Per Conversion** Revenue = 42,986 x 4.8% x .05 x $20 Revenue = $2,063.40 ** The value of $20 for Revenue Per Conversion is being assumed for this exercise. For one, CEO Kiril Alexandrov is quoted as saying “for $20, your wallet will be that thin forever” in the case study. Additionally, after searching their website, the vast majority of wallets listed on their website are being sold for more than $20. Therefore, $20 is used as a bare minimum price for each wallet sold. Even with that in mind, you can see that the revenue is almost double that of the cost. Taking into consideration that a certain number of the wallet sales will most likely be more than $20, the revenue will be larger in reality. This proves that their sponsored search advertising campaign is generating revenue. With that said, we can’t confirm that it is profitable since we weren’t provided with cost of manufacturing and distributing the product. One keyword that Big Skinny might want to decrease their...
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...during writing it. That why our main audience is also given, our opponent team, who are going to mark and grade it. We choose this problem statement, because our team wanted to analyse the mother company’s status and make conclusions of it. Also to see, how is it possible to maintain not a price driven strategy, but a quality driven strategy in nowadays markets. 26.01.2012. ______________________ Table of content * Introduction, Resume page 4 * Supply Chain page 5 * Buying behaviour page 8 * ABC analysis page 11 * PESTEL page 13 * Porter’s 5 forces page 16 * SWOT page 19 * Summary/ Conclusion page 23 Würth Case Würth is a German company and it was established by Adolf Würth, in 1945. The company supplied screws, nuts and bolts at the beginning. After Adolf Würth’s death, his 19-year-old son Reinhold took over the running of the business. From...
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...Sponsored Search Strategy We believe that Big Skinny should continue to advertise via sponsored search ads. Based upon the Cost per Click model presented to us in Exhibit 4 in the case study, the numbers show that they are able to generate a fair amount of revenue. If we evaluate the data within Big Skinny’s CPC model, we can determine the cost and revenue as follows - Cost = Impressions x CTR x CPC Cost = 42,986 x 4.8% x .54 Cost = $1,114.20 Revenue = Impressions x CTR x Conversion Rate x Revenue Per Conversion** Revenue = 42,986 x 4.8% x .05 x $20 Revenue = $2,063.40 ** The value of $20 for Revenue Per Conversion is being assumed for this exercise. For one, CEO Kiril Alexandrov is quoted as saying “for $20, your wallet will be that thin forever” in the case study. Additionally, after searching their website, the vast majority of wallets listed on their website are being sold for more than $20. Therefore, $20 is used as a bare minimum price for each wallet sold. Even with that in mind, you can see that the revenue is almost double that of the cost. Taking into consideration that a certain number of the wallet sales will most likely be more than $20, the revenue will be larger in reality. This proves that their sponsored search advertising campaign is generating revenue. With that said, we can’t confirm that it is profitable since we weren’t provided...
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...South Wales and The University of Sydney Established and supported under the Australian Research Council’s Research Centres Program © Centre for Corporate Change The material contained herein is subject to copyright. No part of this document may be Reproduced or transmitted in any form or by any means without the express written permission of the Centre for Corporate Change. The work of the Centre for Corporate Change is generously supported by Andersen Consulting, Coca-Cola Amatil, Esso, Amcor, Russell Reynolds Associates, BT Asia Pacific, the Department of State & Regional Development, CSR and Telstra. Centre for Corporate Change Index Abstract 1. 2. 3. 4. 5. 6. 7. 8. Renewed Interest In Customer Loyalty Programs Why Companies Introduce Customer Loyalty Programs The Leaky Bucket Theory versus Polygamous Loyalty Linking Customer Rewards to Loyalty Programs The Claimed Benefits of Loyalty Programs Designing a...
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...VAN MELLE SAMEER SUNEJA MANAGING DIRECTOR, PERFETTI VAN MELLE INDIA Sameer Suneja, Managing Director, Perfetti Van Melle has been with the Indian confectionery major for 15 years now. Accredited as among "India's Hottest Young Marketers" in 2005 by Brand Equity and also one of "India's Hottest Young Executives" in 2008 by Business Today, Sameer is largely responsible for building the brands at PVM and creating some memorable and award winning advertising. Sameer joined PVMI during its start up days and has played a key role in the company's distinguished growth over the years. Perfetti Van Melle is the undisputed leader in sugar confectionery today and most of its brands are market leaders in their respective segments. Sameer joined the company as a Brand Manager in 1997 and subsequently moved to Milan for an International Marketing assignment where he spent a couple of years. He returned to India in early 2002 and was the Head of Marketing and subsequently became Head Sales and Marketing. He became the Managing Director three years ago and is among the youngest Managing Directors in the country running a company with a turnover of 1200 Crores. During his stint as a Managing Director, the company has seen exponential top line and bottom line growth. An MBA from IIM Bangalore ('94 batch), he started his career at Colgate Palmolive. From there he moved on to Frito-Lay before joining Perfetti Van Melle. Website: http://www.perfettivanmelle.in GLOBAL OVERVIEW...
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...Section I: Situation Analysis Jasco is working to be the leader in plug-in lights by utilizing licensing agreements and partnerships with box stores. Jasco is looking to expand their online presence and distribution capacities to deliver value to the customer. The market that Jasco is in is the home lighting segment but more specifically the various categories of night lights. The motion night lights utilize the use of “enbrighten” which is a term Jasco uses to describe their long-lasting LED light bulb. The bulb is said to never have be replaced and since all of these are motion lights they do not have to be turned on either. To communicate this to the customer they utilize a well-designed website and also put this on the packaging. To help sell the product and to also further communicate value, Jasco has a licensing agreement with GE. The second category of plug-in lights are the Projectables. Projectables are an innovative way to market to kids. They project their favorite Disney, Nickelodeon, Marvel, or DC Comics character on the ceiling for a night light and entertainment utility. Jasco does not advertise so their primary way of reaching their consumer is to package the product nicely. With the licensing agreements with Disney, Nickelodeon, Marvel, and DC Comics, Jasco utilizes that recognition to help sell their products. Jasco utilizes video demonstrations on their website as well as YouTube. In the Jasco building there is a production studio to increase this unique...
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...their parent corporation of Walmart, since 1983. Sam Walton had the vision of a place where small business owners could go shopping for the items that they need in order to run their company with a low price mark-up and dependable membership service quality. This analysis will separate with seven parts to show the result of the Sam’s club: Executive Summary, Brand/Store background, SWOT Analysis, Company position, Target Market, five mix retail consideration and conclusion. I will combine the customer experience and review with in the internet and people around me to deep find the strategies of the Sam’s club Currently, “nearly 600 locations are not only terrific places to save money, but also destinations for solutions that can help ease a busy schedule. Whether stocking a pantry or a business, selecting new electronics or getting ready for a party, our Members count on Sam’s Club as their source for the products and services they need to keep things running smoothly” (Sam’s Club Inc., 2010). Brand/Store Background Sam’s club is a subsidiary of Wal-Mart that is the largest retail stores chain around the globe. The Sam’s club is member specific and its existence dates back to 1983. Sam’s club’s name is affiliated with Sam Walton, a Wal-Mart founder. The company is presently headquartered in Bentonville, Arkansas, United States. * Sam’s Club is a club of brands. The merchants provide the right items in the right place at the right time, doing the homework...
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...of the Ford Company. In addition, he primarily solved the problems encountered by the firm and led them to a better future. II. 2008 Revenue dropped and lost market share 2008 Revenue dropped and lost market share Timeline 10years of plummet 10years of plummet 2010 Revenue or sale highly increase 2010 Revenue or sale highly increase 2010 Successfully brought down nameplates 2010 Successfully brought down nameplates 2010 Enhancement of existing Sync Function 2010 Enhancement of existing Sync Function 2009 Revenues came earlier than expectation 2009 Revenues came earlier than expectation 2010 Launch of small efficient cars 2010 Launch of small efficient cars 2008 Raise cash the old fashioned way, start relieving 2008 Raise cash the old fashioned way, start relieving 1998 Bestselling vehicle 1998 Bestselling vehicle 2006 Planned to perform cardiac resuscitation 2006 Planned to perform cardiac resuscitation III. Objective * To be able to identify why Ford committed failure * To be able to determine what are the competitive advantage of the company * To be able to discuss where to position the brand * To be able to help Mullaly in making decision * To enhance the reading and analytic skills of the student IV. Statement of problem 1. After 10 years of operation, Ford’s revenues, market share and brand equity fell down. 2. Does the external environment affect the decision of the company. 3. Can...
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...Unit 6 Assignment 2 Capella University 3/28/2013 Nasir Khan Best Buy Company Analysis | Best Buy Co., Inc. is a multinational retailer, which provides consumer electronics, home office products, entertainment products, appliances and related services. The company operates through two business segments: Domestic and International. The Domestic segment is comprised of the operations in all states, districts and territories of the U.S., operating under various brand names, including but not limited to, Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, and Pacific Sales. The International segment is comprised of all operations outside the U.S. and its territories, which includes Canada, Europe, China, Mexico and Turkey. The company also markets its products under the brand names: Best Buy, Audio visions, Best Buy Mobile, The Carphone Warehouse, Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Napster, Pacific Sales and The Phone House. The company changed its name from Sound of Music, Inc. to Best Buy Co., Inc. in 1983. Best Buy was founded by Richard M. Schulze in 1966 and is headquartered in Richfield, MN (BestBuy.com). Through its different brands, Best Buy has offerings in 6 different revenue categories: consumer electronics, home office, entertainment software, appliances, services, and other. Best Buy is considered a Oligopoly. A market where a very few large sellers dominate an industry and they each know how the other will react to changes...
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