...Distribution Channels Case Study In this case , we can find some data : * Variable Costs : * Premium Quality Packing cost =£ 0.14 * Premium Base soap cost =£ 0.08 * Incorporating the perfume in the soap for 300,000 units =£ 0.40 * Gift packs for Christmas = £0.45/5 = 0.09 * Advertising cost for consumers = 100/2000consumers = £0.05 * Energy + maintenance =£ 0.02 * Transportation cost = £0.5 per Kilo =£ 0.075 per unit (150 gm.) So, total Variable cost = 0.855 * Fixed Costs : * Land Factory cost =£ 30,000 * Average expenditure for advertising =£ 400,000 * Sales Representative cost = £12,000 * Car cost =£3000 * Skilled Staff in factory cost = £35000 * Production Line cost =£ 25000 So, total Fixed costs =£ 505000 * Average price per unit soap = average price of main competitive products in the premium sector = £1.60+ £1.75+ £1.85+ £1.95+ £1.45 =£8.6/5=£1.72 per unit. * Estimated target for first year =£ 190 million * 7% =£13.3 million * Target per Units for first year =£ 13300000 / £1.72 = 7732558 units * Contribution margin CM =(S-VC)per unit = £1.72-£0.855 =£0.865 per unit * Break Even Point = FC / CM = 505000/0.865=583815.03 units 1) Who are your target audience? Research suggested that the main consumer of premium soaps was female 35+, socio-economic group A...
Words: 633 - Pages: 3
...used for cleansing the skin but it will be the fragrance which be the vehicle to attractive our audience to enjoy feeling good by using our product. ------------------------------------------------- However, fragrance soap can be chosen to make a person experience a new mood or to change her (his) mood and for sure to enhance attractiveness and personality and be more convenient social perceptions. 3) What are the IMC tools you are intending to use to reach your target audience and why? Our distribution channels should combine a variety of marketing activities and may include: 1. Advertising on newspaper, magazine, Radio, internet 2. Packaging 3. Public relations 4. Direct sales 5. Internet marketing 6. Sales promotions 7. Other publicity effort. 4) Which distribution channels will be most appropriate? Direct channels Direct distribution to retailers translates to lower prices to consumers, large chain retailers, operate large distribution centres that warehouse and ship products direct from manufacturer to local stores within a defined geographic area. Generally works best for distributing products to large-chain retailers, using a distribution path from manufacturer to retailer to consumer. Indirect channels ------------------------------------------------- Wholesalers to distribute products to smaller retailers, specialty retailers and independents that have limited warehouse capacity....
Words: 548 - Pages: 3
...Global Marketing The foreign marketing involvement of a manufacturing company may widely vary from a state of no direct involvement to a state of total involvement. Several types of involvement are generally observed, even though they are not mutually exclusive nor sequentially progressive. Depending on the kind and degree of its involvement in foreign marketing, a firm has to re-orient and re-organize its activities to cope with different levels of operational responsibilities inherent in such involvement. To throw some light on the issue, some guidelines are available from what is called EPRG orientation. The EPRG framework attempts, four broad types of orientation of a firm towards foreign marketing. This paper aims to suggest a model to assist when deciding which foreign investor to select. In much of the current literature on the problem faced by the small transitional countries/companies, globalization by foreign transnational companies (TNCs) is considered to be the generic expansion strategy. The question is, however, which foreign investor to select. The paper evaluates the potentials of the EPRG scheme (Ethnocentrism, Polycentrism, Regiocentrism, and Geocentrism) in choosing foreign investor. It enables company to analyze and predict its competitors' behavior. (Biljana Crnjak-Karanovič). The Ethnocentric, Polycentric, Regiocentric, and Geocentric Framework (EPRG) dates back to Perlmuter (1969) and his associates Wind and Douglas (1973). The EPRG framework identifies...
Words: 5091 - Pages: 21
...Chapter 17 Outline Procter & Gamble in Japan: from Marketing Failure to Success Introduction The Globalization of Markets? Market Segmentation Product Attributes Cultural Differences Economic Differences Product and Technical Standards Distribution Strategy A Typical Distribution System Differences between Countries Choosing a Distribution Strategy Communication Strategy Barriers to International Communication Push versus Pull Strategies Global Advertising Pricing Strategy Price Discrimination Strategic Pricing Regulatory Influences on Prices Configuring the Marketing Mix New Product Development The Location of R&D Integrating R&D, Marketing, and Production Cross-Functional Teams Implications for the International Business Chapter Summary Critical Discussion Questions Nike--The Ugly American? Procter & Gamble in Japan: from Marketing Failure to Success Procter & Gamble (P&G), the large US consumer products company, has a well-earned reputation as one of the world's best marketers. With its 80-plus major brands, P&G generates more than $37 billion in annual revenues worldwide. Along with Unilever, P&G is a dominant global force in laundry detergents, cleaning products, and personal care products. P&G expanded abroad after World War II by exporting its brands and marketing policies to Western Europe, initially with considerable success. Over the next 30 years, this policy of developing new products and marketing strategies in the United States and...
Words: 16584 - Pages: 67
...*** (A) IMPORTANCE OF MARKETING Marketing is a very important aspect in business since it contributes greatly to the success of the organization. Production and distribution depend largely on marketing. Marketing covers advertising, promotions, public relations, and sales. Since the goal of marketing is to make the product or service widely known and recognized to the market, marketers must be creative in their marketing activities. In this competitive nature of many businesses, getting the product noticed is not that easy. Strategically, the business must be centered on the customers more than the products. Although good and quality products are also essential, the buying public still has their personal preferences. If you target more of their needs, they will come back again and again and even bring along recruits. If you push more on the product and disregard their wants and the benefits they can get, you will lose your customers in no time. The sad thing is that getting them back is the hardest part. 1. Marketing Promotes Product Awareness to the Public Getting the product or service recognized by the market is the primary goal of marketing. No business possibly ever thought of just letting the people find out about the business themselves, unless you have already established a reputation in the industry. But if you are a start-out company, the only means to be made known is to advertise and promote but the important thing is that product and company information is...
Words: 43638 - Pages: 175
...Pepsi nuts over new nut snack Chaitali Chakravarty, ET TEAM Nov 21, 2001, 10.02pm IST enthused by the profits that fritolay has generated, parent pepsi, is adding more to its snackfood subsidiary. the company is set to roll out a new nut-based snack, nutyumz, nationally. also, plans are afoot to eventually drop lehar from the lehar kurkure brand. sources said that lehar kurkure has been earning a substantial amount for fritolay (it accounts for more than one-third of its total turnover) and it is about time to market it under the kurkure brand alone. sources said that nutyumz will be launched in different flavours. the brand has been innovated for the indian market alone. besides india, mexico is the only other market where pepsi is selling nut-based snacks under a different brand name. in india, nutyumz will be manufactured in the company-owned plant in pune. the fritolay spokesperson confirmed the launch of new brand. sources said pepsi is gung-ho about fritolay as the subsidiary has been making some money, it ended the year 2000 with a rs 4 crore profit, up from rs 3.04 crore earned in the year ending 1999. pepsi's idea is to create new categories to suit indian tastes and pump up the profit figures by at least rs 2 crore by the end of 2002. sources said that after pepsi acquired uncle chipps, it got within its fold an entire constituency. lays and uncle chipps together earn the maximum (around 50 per cent) for fritolay, while cheetos and lehar namkeen are still on the...
Words: 18723 - Pages: 75
...BRAND AUDIT- RED BULL Index Table of Contents Introduction to brand audit.................................................................................................. 1 1.Background of energy drinks ................................................................................................. 3 2. Market analysis of energy drinks ………………………………………………………………………………. 4 3.Red Bull……………………………………………………………………………………………………………………………. 7 4.Integrated marketing communication channels………………….……………………………..………….13 5.Survey Analysis……….……………………………………………………………….…………………..……………….22 6.Red Bull brand………………………………………………………………………………………………………….……29 7.Competitor analysis………………………………………………………………………………………………………..38 8.Red Bull positioning…………………………………………………………………………………………………..….40 9.SWOT analysis……………………………………………………………………………………………………….………42 10.PESTEL analysis……………………………………………………………………………………………………..…….43 11.Supply and distribution of red bull………………………………………………………………………….…….45 12.Red bull in news…………………………………………………………………………………………………………....46 13.Reccomendations…………………………………………………………………………………………………………. 50 References Exhibit(survey questions)………………………………………………………………………………………………….53 2 INTRODUCTION TO BRAND AUDIT A brand audit is a thorough examination of a brand’s current position in an industry compared to its competitors and the examination of its effectiveness. When it comes to brand auditing, five questions should be carefully examined and assessed. These five questions are how well the...
Words: 8752 - Pages: 36
...VIDEO on FT.com Lionel Barber, Martin Wolf and Vanessa Friedman interview leading figures at the FT luxury summit in Monte Carlo FT.com/luxury-video SPECIAL REPORT | Monday June 15 2009 www.ft.com/business-luxury-2009 Slimming all the rage as belts tighten Haig Simonian investigates the problems faced by luxury goods conglomerates in the current market F or years, equity analysts urged Johann Rupert to spin off tobacco and turn Richemont, the company he chairs and controls, into a “pure play” luxury goods group. In 2008, the independently-minded Mr Rupert finally took heed and returned Richemont’s stake in British American Tobacco to shareholders, leaving his group focused on Cartier jewellery, Montblanc pens and much else. Today, some of the same pundits are regretting the loss of those high and stable BAT dividends, as the world’s luxury goods industry struggles with its biggest challenges in decades. Demand has tumbled virtually across the globe with no clear sign of recovery. Manufacturers from LVMH Möet Hennessy Louis Vuitton, the world’s biggest luxury goods group, to Italy’s Bulgari, find themselves saddled with stubbornly high costs, leaving little room for manoeuvre. Even beauty has proved vulnerable, contrary to the common claim, as figures for L’Oréal and others show. On top of the market problems, the sector faces tough secular change. Globalisation has put a premium on size – but sheer mass risks diluting the exclusivity that is luxury groups’ key...
Words: 10171 - Pages: 41
...Retailing in the 21st Century Manfred Krafft ´ Murali K. Mantrala (Editors) Retailing in the 21st Century Current and Future Trends With 79 Figures and 32 Tables 12 Professor Dr. Manfred Krafft University of Muenster Institute of Marketing Am Stadtgraben 13±15 48143 Muenster Germany mkrafft@uni-muenster.de Professor Murali K. Mantrala, PhD University of Missouri ± Columbia College of Business 438 Cornell Hall Columbia, MO 65211 USA mantralam@missouri.edu ISBN-10 3-540-28399-4 Springer Berlin Heidelberg New York ISBN-13 978-3-540-28399-7 Springer Berlin Heidelberg New York Cataloging-in-Publication Data Library of Congress Control Number: 2005932316 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. Springer is a part of Springer Science+Business Media springeronline.com ° Springer Berlin ´ Heidelberg 2006 Printed in Germany The use of general descriptive names, registered names, trademarks, etc. in this publication does not...
Words: 158632 - Pages: 635
...Learning with Cases INTRODUCTION The case study method of teaching used in management education is quite different from most of the methods of teaching used at the school and undergraduate course levels. Unlike traditional lecture-based teaching where student participation in the classroom is minimal, the case method is an active learning method, which requires participation and involvement from the student in the classroom. For students who have been exposed only to the traditional teaching methods, this calls for a major change in their approach to learning. This introduction is intended to provide students with some basic information about the case method, and guidelines about what they must do to gain the maximum benefit from the method. We begin by taking a brief look at what case studies are, and how they are used in the classroom. Then we discuss what the student needs to do to prepare for a class, and what she can expect during the case discussion. We also explain how student performance is evaluated in a case study based course. Finally, we describe the benefits a student of management can expect to gain through the use of the case method. WHAT IS A CASE STUDY? There is no universally accepted definition for a case study, and the case method means different things to different people. Consequently, all case studies are not structured similarly, and variations abound in terms of style, structure and approach. Case material ranges from small caselets (a few paragraphs...
Words: 239776 - Pages: 960
...LVMH 2012 — ANNUAL REPORT BUSINESS REVIEW CONTENT — Group’s profile 03 06 09 10 11 CHAIRMAN’S MESSAGE FINANCIAL HIGHLIGHTS INTERVIEW WITH THE GROUP MANAGING DIRECTOR GOVERNANCE EXECUTIVE AND SUPERVISORY BODIES A coherent universe of men and women passionate about their profession and driven by the desire to innovate and achieve. An unrivalled group of powerfully evocative brands and great names that are synonymous with the history of luxury. A natural alliance between art and craftsmanship, dominated by creativity, virtuosity and quality. A remarkable economic success story with more than 100,000 employees worldwide and global leadership in the manufacture and distribution of luxury goods. A global vision dedicated to serving the needs of every customer. The successful marriage of cultures grounded in tradition and elegance with the most advanced marketing, industrial organization and management techniques. A singular mix of talent, daring and thoroughness in the quest for excellence. A unique enterprise that stands out in its sector. Our philosophy can be summarized in two words: CREATIVE PASSION. 12 22 36 46 58 WINES & SPIRITS FASHION & LEATHER GOODS PERFUMES & COSMETICS WATCHES & JEWELRY SELECTIVE RETAILING — The values of LVMH Innovation and creativity Because our future success will come from the renewal of our product offering while respecting the roots of our Maisons. Excellence of products and service Because we embody what is most noble and accomplished...
Words: 48163 - Pages: 193
...LVMH 2012 — ANNUAL REPORT BUSINESS REVIEW CONTENT — Group’s profile 03 06 09 10 11 CHAIRMAN’S MESSAGE FINANCIAL HIGHLIGHTS INTERVIEW WITH THE GROUP MANAGING DIRECTOR GOVERNANCE EXECUTIVE AND SUPERVISORY BODIES A coherent universe of men and women passionate about their profession and driven by the desire to innovate and achieve. An unrivalled group of powerfully evocative brands and great names that are synonymous with the history of luxury. A natural alliance between art and craftsmanship, dominated by creativity, virtuosity and quality. A remarkable economic success story with more than 100,000 employees worldwide and global leadership in the manufacture and distribution of luxury goods. A global vision dedicated to serving the needs of every customer. The successful marriage of cultures grounded in tradition and elegance with the most advanced marketing, industrial organization and management techniques. A singular mix of talent, daring and thoroughness in the quest for excellence. A unique enterprise that stands out in its sector. Our philosophy can be summarized in two words: CREATIVE PASSION. 12 22 36 46 58 WINES & SPIRITS FASHION & LEATHER GOODS PERFUMES & COSMETICS WATCHES & JEWELRY SELECTIVE RETAILING — The values of LVMH Innovation and creativity Because our future success will come from the renewal of our product offering while respecting the roots of our Maisons. Excellence of products and service Because we embody what is most noble and accomplished...
Words: 48163 - Pages: 193
...How Marketing Strategies Impact on Buying Behavior of Customers, A Case Study of TESCO Table of Contents Chapter 1; Introduction to Topic Introduction Introduction to Tesco Aim of the Study Importance of the Study Research Questions Research Objectives Research Strategy Chapter 2; Background Literature Review Chapter 3; Methodology Research Design Research Approach Research Methodology Reason for Methodology Selection Data Collection Tools for Data Collection Sampling Methods Data Presentation Sample Size Data Analysis Validity Reliability Ethics of Research Limitations of the Research Chapter 4; Data Analysis Introduction Tesco Marketing Strategies of a retail Business Consumer Behavior Determinants Marketing Strategies to Affect Consumer Psychology Potential Fail Points of Retail Marketing Effect of Marketing Strategies on Consumer Behavior Chapter 5: Conclusion Introduction Retail Marketing Strategies Determinants of Consumer Behavior Consumer Psychology based Marketing Strategies Retail Marketing Fail Points Marketing Effects on Consumer Behavior Conclusion References CHAPTER 1: INTRODUCTION TO TOPIC 1.1. INTRODUCTION The world today is subjected to globalization that has affected every part of the business. Business strategies have changed; customer is more aware of what he actually needs, multiple options are available much conveniently then were ever before. This over competitive environment has increased the pressure...
Words: 16750 - Pages: 67
...c MARKETING 7E People real Choices This page intentionally left blank MARKETING 7E People real Choices Michael R. SAINT JOSEPH S SOLOMON ’ U OLLINS NIVERSITY Greg W. MARSHALL R C STUART OLLEGE Elnora W. THE UNIVERSITY OF SOUTH CAROLINA UPSTATE Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Acquisitions Editor: Melissa Sabella Director of Editorial Services: Ashley Santora Editorial Project Manager: Kierra Bloom Editorial Assistant: Elisabeth Scarpa Director of Marketing: Patrice Lumumba Jones Senior Marketing Manager: Anne Fahlgren Marketing Assistant: Melinda Jensen Senior Managing Editor: Judy Leale Project Manager: Becca Richter Senior Operations Supervisor: Arnold Vila Creative Director: Jon Christiana Senior Art Director: Blair Brown Text and Cover Designer: Blair Brown Media Project Manager, Production: Lisa Rinaldi Media Project Manager, Editorial: Denise Vaughn Full-Service Project Management: S4Carlisle Publishing Services Composition: S4Carlisle Publishing Services Printer/Bindery: Courier/Kendalville Cover Printer: Courier/Kendalville Text Font: Palatino Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook...
Words: 227255 - Pages: 910
...Instructor’s Manual Jane Murtaugh College of DuPage BUSINESS IN ACTION 3rd Edition COURTLAND L. BOVEE JOHN V. THILL & BARBARA E. SCHATZMAN Introduction This Instructor’s Manual brings together a set of completely integrated support materials designed to save instructors the trouble of finding and assembling the resources available for each chapter of the text. 1. Course Planning Guide Included in the guide are suggestions for course design, classroom activities, and supplemental teaching aids. 2. Learning Objectives and Summary of Learning Objectives For each chapter, learning objectives and the summary of the learning objectives are listed. 3. Brief Chapter Outlines For each chapter, a brief chapter outline is provided. 4. Lecture Notes and Chapter Outlines For each chapter, a comprehensive outline is provided, as well as a variety of stimulating lecture enrichment materials. 5. Real-World Cases At least two real-world cases related to chapter material are included for each chapter. 6. Answers to End-of-Chapter Questions Answers to the end-of-chapter questions are provided, as well as suggested teaching tips when appropriate. 7. Answers to See It on the Web Exercises Following the end-of-chapter questions, answers to the See It on the Web Exercises can be found, along with tips for the instructor. Answers to Boxed Features In each chapter, students are presented with at least two supplemental “boxes,” both containing questions about the material discussed. Answers...
Words: 156200 - Pages: 625
