...Q1 After reading this case and emphasizing all the factors and decision involved, we use the ADBUDG model to solve this problem with applying advertising decisions. The ADBUDG model is a sales response model which optimizes the profit from advertising based on the given advertising budget and also decides how to allocate the advertising budget and how much a company should spend on a given timeline. We will determine the optimal budget for Blue Mountain Coffee in this scenario. The given advertising budget for this company is 8m a year. By using the ADBUDG model, we can forecast the outcome and tell if the current advertising amount spend on a yearly basis is the appropriate amount or if we have to increase the advertising budget to gain a certain percentage of market share. Scenario 1 The model analyzes quarter by quarter. The figure shows all the related numbers and the expected profit when the advertising budget is allocated equally in each quarter: As we can see the advertising budget is allocated equally in each quarter, with a budget of $8m annually. With the given advertising budget, Blue Mountain Coffee is expected to make $43.8m in profits for the 3 year forecast. Scenario 2 Here is what we get in the excel spreadsheet when running the solver to get the optimal budget: After running the solver to optimize the advertising budget, the first thing to notice is that the annual advertising budget has been increased by $2m. Secondly, the way...
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...1971 and is now one of the fastest developing coffee retailers in the world. The company now has over 8,000 company operated stores and 7,803 licensed stores in 49 countries. Starbucks has been in a steady state of development since CEO Howard Shultz in a franchise with a group of investors in 1987. Starbucks is the largest coffee bar chain in the U.S. In actual fact, they are the largest in the world, with some 2,600 stores globally. These stores all have like products that are similar in appearance. Starbucks seeks to provide the same experience to coffee drinkers in Seattle, New York, London, Kuwait City, and Taipei. Starbucks also offers services to companies to supply coffee and related items to their employees, owns a supermarket channel run by Kraft Foods, and sells its coffee and other items directly to customers through catalogs and its website. Ahead of these items, the company has an agreement with Pepsi-Cola to develop and produce bottled coffee drinks like the "Frappuccino" drinks and an agreement with Dreyer's Grand Ice Cream to produce different flavors of ice cream. Moreover, the company provides coffee service to customers like airlines and hotels. To put all this in perspective, in fiscal year 2009, Company operated retail stores accounted for about 84% of revenues. Starbucks catches the attention of near-cult followers, serving 25 million drinks a week at over 8,000 locations worldwide. The Seattle-based coffee empire was among the top 10 on Fortune’s most...
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...Question: Company Luau Kona and Blue Jamaican a. Using a plant-wide rate based on machine hours to assign manufacturing overhead cost to products In this approach the manufacturing overhead is based on machine hours. The manufacturing overhead application rate has been has been provided as $54.00 per machine hour. The following table list on the first row the number of machine hours required for each coffee type. The second row show the manufacture overhead for one kilo of coffee, based on the machine hours for one kilo of each coffee and the rate for machine hour | Luau Kona | Blue Jamaican | Machine hours required for the manufacture of one kilo of coffee. | 0.04 | 0.02 | Manufacturing overhead application rate for one kilo of coffee | 0.04 x $54.00 = $2.16 | 0.02 x $54.00= $1.08 | Requirement: Determine the total unit product cost of one kilogram of the Luau Kona coffee and one kilogram of the Blue Jamaican coffee. In order to calculate the total unit product cost of one kilogram of coffee, we need to add: - Direct material cost - Direct labour cost - Manufacturing overhead application rate | Luau Kona | Blue Jamaican | Direct material cost | $5.20 | $3.10 | Direct labour cost | $0.20 | $0.37 | Manufacturing overhead application rate | $2.16 | $1.08 | Total unit product cost of one kilogram | $7.56 | $4.55 | b. Using multiple predetermined overhead rates based on the departmental rates In this approach the manufacturing overhead is calculated by adding different...
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...kinds of running projects, or you still think that my country is located in Africa, it’s not very important. Coz today I will introduce my country in another way. What I want to show you all is this -- Blue Mountain Coffee! Some of you may have heard of the Jamaican Blue Mountain coffee, of course you’ve been heard about it coz it is world famous! Our coffee produced from Blue Mountain which located in the coffee belt, it has a rich volcanic soil, clean air, no pollution, climate humid, foggy and rainy throughout the year. Three taste -- sweet, sour, bitter are prefect mixed in our coffee, the taste of our coffee must make you never forget. Now, ninety percent of Jamaican Blue Mountain coffee each year are bought by the Japanese. This is because Japan has invested Jamaican coffee for a brief time. But now we want to cooperate with more countries, especially in countries such as China which has a great consumption potential in the future. Question: 1. I would like to know whether China interested in investing our Blue Mountain Coffee. 2. We can guarantee the quality of the coffee, but as the second most expensive coffee in the world, we can not guarantee a low price to you. 3. As food import and export management is very strict in China, I would like to know if you can export our coffee to China....
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...Thesis statement The coffee industry has been thriving over the years up to 1985, but due to decline in sales completion and supply being greater than demand the industries’ survival and growth has dwindled. Rationale This question was chosen by the researcher to examine the factors that encouraged the development and existence of the coffee industry. This research will help others fix the problem and provide jobs for unemployed people, bring more money for the government to fund programs such as P.A.T.H which helps children in schools as well as for the government to buy more medical necessities. Introduction Coffee was introduced to Jamaica by Sir Nicholas Lawes governor of Jamaica at that time, he brought the plant from Haiti in 1728. It was first planted in the parish of St. Andrew on the Blue Mountains. The Coffee Industry became successful because of the natural attributes of the country such as the cool climate which was suitable for the growth of coffee. The relief of the land such as the rugged mountains and the rich soil. The marketing overseas also proved valuable as it provided foreign exchange. The industry also provided employment for competent and incompetent workers. As a result of its growth farmers saw it fit to invest in the cultivation of coffee in various parts of Jamaica. It became more dominant in 1838 after slavery was fully abolished and seen as a good investment by others than peasant farmers. The coffee industry is important to the economy...
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...04/07/13 Part A: Developing an online business expansion proposal. 1. Viability of product or service A. What is the business case for going online: In today’s society there is such a demand for coffee, not only in the United States, but worldwide. One highly increasing trend is the desire for specialty coffee. At Blue Mountain Coffee, they are right on track to meeting the growing consumer’s needs. They offer a wide line of specialty coffee made from the finest coffee beans. It appears that the Market and Sales potential for their specialty product line is vary vast. Consumers' purchase of gourmet coffee (specialty and premium) is increasing, according to the National Coffee Association, with over 40% of coffee consumed being gourmet. They currently are using a sales force to sell their coffee to a variety of wholesale locations, and have been very successful. Many customers already are loyal to their brand, and are even loyal to their coffee. With the desire to grow their business, they will need to make their company even more visible and easily accessible. By putting Blue Mountain Coffee online they will be able to achieve this task. B. Why does it make sense to go online: There are many types of businesses that currently have online exposure, and have found great success. Creating a website to sell Blue Mountain Coffee’s superior product line would be an endearing, but certainly a rewarding task. By putting their business online it amplifies their...
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...Case Overview/Selection/Assignments BrandScape Dates and Assignments Because of the tight seven-week scheduling of this course, we need to arrange for teams and team assignments for both the BrandScape and Case Assignments right away. To facilitate this process, the assignments and dates are outlined here. Please, as soon as is possible, sign up for the BrandScape date as well as the case of your choice. Please indicate your team by name, names of all team members, and your preferences with #1 (Most Desired) through and including - #5 (Least Desired.) If you’re not yet on a team, please let me know, along with your preferences. I’ll try to accommodate preferences as much as I can. (On the other hand, I will need your forbearance, because it usually is not possible to give everyone their first choice.) Team Name: _______________________________________________ Team Members:____________________________________________________ _____________________________________________________________ BrandScape Dates/Assignments. (Be Sure to check the brand you select with Dr. Oliva) BrandScape 1, Wednesday, November 7, 2012 Preference # _______(1Most Desired-5 Least) BrandScape 2, Monday, November 12, 2012 Preference # _______ BrandScape 3, Monday, November 26, 2012 Preference # _______ BrandScape 4, Monday, December 3, 2012 Preference # _______ BrandScape 5, Monday December 10, 2012 Preference # _______ BrandScape 6, (7) Wednesday...
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...correct the problem they may be faced with. Our job was to locate a product that has recently been recalled I chose to research the Keurig MINI Brewing System, it was recalled on December 23, 2014, and the Recall number: 15-05. See below for an example of the product code bar and what the consumers who purchased the product were looking for to see of their product was affected by the recall. This picture below was provided by the compnay. * | | 1. 2 of 3 photos 2. Identification number is located on a white sticker on the bottom of the brewers 3. Below is a brief summary of the product and why it was recalled, also known as the Recall Summary? Keurig® MINI Plus Brewing Systems, the hazard occurred when the coffee was being brewed, apparently the water would overheat and spray out the sides and the consumed became burned. Keurig did provide duty of care to the consumers (See below). They seem to have covered their legal obligation to the consumers by offering an extensive list of how to correct the malfunction in order to avoid any more harm done to the consumers....
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...S SUNSET GRILL AT BLUE w 9B10D015 Jason Melhuish wrote this case under the supervision of Professors Dina Ribbink and John Haywood-Farmer solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors might have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2010, Richard Ivey School of Business Foundation O D O It always seemed to take staff longer than the owner expected to learn the ropes, and queues were endemic in the restaurant’s operations. On a recent busy weekend, Melhuish had been dismayed to discover that the queue of waiting customers stretched all the way around the street corner. He had darted outside and reassured customers that they would be seated within 15 minutes. Although many patrons groaned and decided to go elsewhere, many others stayed, because breakfast options in the vicinity were...
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...Mountain Man Light: More Profits or Less Brand Equity? TMBA BBUS 506 A Michael Cavelero, Joel Engstrom, Nesreen Zadah, David Tobey 5/3/2010 1 | P a g e Introduction "We are not here to sell a parcel of boilers and vats, but the potentiality of growing rich beyond the dreams of avarice." – Samuel Johnson, ‘On the Sale of Thrale’s Brewery’ “Some of those coal miners could really drink some beer. We would always stay until closing time, and it happened so many times that the busses were not running anymore. Many weekends we’d get back early in the morning, and we had to be at the coal mines at six in the morning. All we could do was change our clothes, take our lunch bag and go to work.” – Jeff Noordermeer, ‘Fifty Years of My Life’ It should surprise no one that West Virginia is beer country. Originally “beyond the pale” of European settlement in Virginia Colony, the Appalachian Mountains were nevertheless welltraversed by Scottish traders hawking spirits to the resident Cherokee. The cessation of the French-Indian war in the 1760s brought permanent settlement by Welshmen, Germans and even more English – all of whom fancied a solid stout. The 1800s saw the start of the long coal boom that transformed Appalachian society, converting subsistence farmers into coal miners and commercializing beer production to meet rising demand. That trend continues today: so popular is beer that West Virginia University has classes on the subject. Mountain Man Brewing Company...
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...STRATEGIC MARKETING Group Presentation Overview of Indian Market- Past • • • • • In the year 1991, the Indian Government adopted Economic Liberalization Policy “Cold Drinks” as popularly known in India were an Urban phenomenon and the favorites (soda based) were Campa Cola, Gold Spot, Limca and Thums Up Pepsi entered in the Indian Market as Pepsi Foods Ltd. and was known as Lehar Pepsi Coke tried to reenter* in 1990 by merging with Godrej but was denied; merged with Britannia Industries India Ltd. July 1993 Parle sold its brands and plants to Coke *Coke was present in India from 1970’s, but was banned in 1977 under FERA Overview of Indian Market- Present • • • • Today the Indian Market for Carbonated Drinks is worth more than Rs.17000 crore The present scenario of the carbonated drinks market is duopoly* situation. Although in every place there are local competitors and there is a huge unorganized flavored water market. As far as the carbonated drinks are concerned there are only two brands (as per the Market Share). – Coke (57.8%) – Pepsi (35.6%) *A duopoly is a competitive situation where there are two competitors, normally of roughly equal size. Coca-Cola BACKGROUND Coca- Cola Milestones • • • • • • • • • 1886: Founded by John Pemberton 1887: Registered as trademark. 1895: Sold in every state & territory in US. 2003: Headquartered in Atlanta with divisions & local operations in over 200 countries...
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...Blue Ridge Mountains 2030 AD Sound asleep in his mountain cabin Zach Taylor had arrived late the night before with plans to sleep in, when the sun rose above the horizon. The altitude increases the intensity of the sun’s rays, so there is no escaping the luminosity that ensues. Consequently, the rays assaulted the uncovered window with reckless abandon and filled the room with a brightness that would make it difficult for the soundest sleeper to ignore. Moreover, not ready to get up yet, Zach wasn’t a sound sleeper so he threw the pillow over his face, in a feeble attempt to conceal the amount of light pouring through the window. Muttering to himself, “I need some heavy duty curtains on that window.” Never at his retreat for long periods of time, the memory of the sun’s intensity would fade by the next time Zach was somewhere that had the curtains he wanted. Surrendering to the circumstances, his legs dropped off the side of the bed and his feet lowered to the floor. Recoiling as the cold wood floor sent a chill all the way to his spine, he attempted again being better prepared for the assault his feet would experience. Weather in late April can...
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...Chapter 11 Case Study: Pepsi Background of the Company- 1965-PepsiCo, Inc. was established through the merger of Pepsi Cola and Frito-Lay. Caleb Bradham, a New Bern, N.C. pharmacist, created Pepsi Cola in the late 1890s. The 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. LAY COMPANY, formed Frito-Lay, Inc., founded by Herman W. Lay, also in 1932. Herman Lay, former chairman and CEO of Frito-Lay, was chairman of the board of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi Cola, was president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are: Pepsi Cola Company: Pepsi Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948). Frito-Lay, Inc.: Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961). 1966- Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the United States. Pepsi enters Japan and Eastern Europe. 1971- PepsiCo moves from New York City to its new world headquarters in Purchase, N.Y. The new corporate headquarters features a building by one of America's foremost architects, Edward Durrell Stone (19021978), set on a 144acre...
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...Positioning: 18 1. Segmentation: 18 2. Targeting: 19 3. Positioning: 19 C. Competitive Strategy 20 D. Marketing Mix: 21 1. Product 22 2. Price 22 3. Place: 23 4. Promotion 23 5. People 24 6. Physical Evidence 24 7. Process 25 VI. IMPLEMENTATION: 26 A. Product development and diversification 26 B. Price 27 C. Internationalization and distribution networks: 28 D. Promotion: 28 E. People: 28 F. Budget: 29 VII. CONTROL AND MONITORING: 30 VIII. APPENDIXES 31 EXECUTIVE SUMMARY: Starbucks Corporation, currently the global leader in the coffee business, started off as a coffee bean roaster and retailer in 1971 in Seattle. Since then the firm has established 20,891 stores across 64 countries under the leadership of Howard Schultz. In the last decade, Starbucks has resorted to aggressive expansion making it the leader on the coffee shop market. However, increased domestic competition, recession and rise of commodity prices have led them to shut down 128 stores in 2013. Hence, arises the need for a novel marketing plan. An analysis of the current situation reveals that Starbucks’ biggest strengths are its brand image and store appeal. However, Starbucks’ reliance on the U.S markets for its revenue is highly unsafe in the long run. Hence it is advisable to venture into other markets and thus...
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...CAAE STUDY 1 Technology 1. Online purchasing enables cross-border trading activity. This, Nullifies the constraints of business location, scale and time zone. 2. With better technology, shipment of goods from one type of transport to another will be easy. 3. Reduced cost of long distance transport through improved efficiencies and reduced labour requirements. This result in cheaper goods available to consumers. 4. Save time to travel to shopping centres and provide wide range of items than traditional retail shop 5. Retail industry is in decline as users change to online purchasing. This is expected to get worse with the possible increase use of internet. 6. Sophisticated US internet retailers found that with a few tweaks to their websites and some negotiations with logistics suppliers, they had become global internet retailers. 7. The Australian consumers now purchase goods from US, which was not accessible before. 8. Sometimes search engine helped them to find the products at the best price. 9. The technology helped the retailers to identify the consumers behaviour patterns and have their prior purchase history and help them to “see” the products in their home setting 10. Consumers have access to global pricing and they are likely to check online before making the purchase Economy 1. The global financial crises forced US business to look for source of revenue outside their normal channel. This result in direct competition with Australian...
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