...Case Analysis for Pepsi Co Acquisition - More high level analysis (by beverages and food) we are in consumer packaged beverage and snack business Identify • Vision • Mission - Market leader in every industry they compete in - Synergies (transferring, management, HR skills, distribution channels – i.e. Power of One) - Market expansion (international) - Related diversification (share some of the same channels, advertising, distribution, etc) - There was no clear cut vision ( analysts and CEO even admitted it (looked like they were taking advantages of long term and short term opportunities) - Why do you have a portfolio of businesses? Maximize shareholder value ( would be one of the main drawbacks - Would buy current companies that will help piggy bank on their current success (i.e. restaurants and distribution channels) - Portfolio management – do they sell things off at the right time Identify Strategic Objectives (Are these objectives SMART) • Financial o Growth sale by certain percentage o Stock price o Cash • Non-Financial o Efficiency o International market Identify Current Business Strategy • Does It Make Sense? Why? Evaluate 1. Industry • Five Forces – Look at the industry today (*implication to the industry) Rivalry - Big companies manage to find niche and expand it - Little guys usually get bought out from...
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...baby products had been used extensively by young female adults and women in a completely unintended fashion. This clearly provides an evidence of vacuum in this space and the need and opportunity to develop and market a new face powder product catering to the needs of these women. The product can be positioned either as a cosmetic/toiletry product and targeted specifically at young/adult women of varying buying power capabilities. The choice of distribution channels also plays a critical role while targeting these segments. Estimates (15-month period): Revenue: 6,500,00 peso => 2,600,000(compacts) & 3,900,000 (refills) [1:1.5 ratio] Price: 39.95(compact) vs 24.95(refills) Expected purchases : 2.6M/39.95 = 65,081(compacts) & 3.9/24.95= 156,312(refills) Potential Marketing Strategies Option 1(given in case): Toiletry product - Value Pricing - AB & C class urban females, 16-25 years old - Distribution channel- Supermarkets * Appeals to mothers looking for non-cosmetic products. * Super market distribution increases access to audience, reduces cost. * Value pricing will create easy acceptance for customers. * Opportunity to create a new product segment and first mover advantage. * Not many upper class people come to super market to make low-value purchases. * Apparent conflict between target segment (high class urban) and value pricing positioning. * AB & C...
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...ASSIGNMENT # 3: Pricing Strategy and Channel Distribution By Strayer University MKT 500 November 8, 2010 Abstract: The purpose of this paper is to discuss the Pricing & Distribution Channels of Baker’s Bed & Breakfast Inn. Unlike cookie cutter hotels, Bed & Breakfast Inns are unique and they provide there own characteristics, setting, and ambiance. At Baker’s Bed & Breakfast Inn we cater to our guest tastes and needs. Pricing Strategy: Owning and operating a Bed & Breakfast can provide both financial and personal rewards. In the United States Bed & Breakfast Inns are making a comeback, serving travelers who want a special personal home-like hospitality and a good breakfast to start the day. (Bed& Breakfast Inn Online, 2009) Baker’s Bed and Breakfast Inn take pride in providing our customer’s with a luxurious accommodations. Our prices for accommodation have been set at the higher end of the market as the client base is seen as in the mid to higher socioeconomic sector. Pricing scheme is based on a room rate per night, which includes breakfast. Prices for the weekends will be 10% higher than weekdays, and when guest stay three nights or more a discount o 15% will be applied to guest bills automatically. As there are not a high level of seasonality for guests coming to the region prices will be set at the same year round except for special events such as Easter, Thanksgiving, Christmas and New Years. At these special times a 10% surcharge will...
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...Table of Contents Executive Summary ------------------------------------------------------------------------ 3 Strategic Analysis --------------------------------------------------------------------------- 4 Analysis results ------------------------------------------------------------------------------ 7 SWOT ----------------------------------------------------------------------------------------- 8 Balanced scorecard ------------------------------------------------------------------------- 9 Recommendations --------------------------------------------------------------------------10 Executive Summary Our consulting firm, NG Inc, was asked to research Starbucks and compile a strategic analysis and balanced scorecard for their career objectives. Starbucks was founded in 1971 in Seattle and continues to be the lead marketer of fine coffee at the retail level. It currently has retail stores in all 50 states, as well as 36 countries outside the U.S. Its products and services include: over 30 blends of coffee, hand crafted beverages, merchandise, fresh food, global consumer products, Starbucks cards (rechargeable gift cards), and its brand portfolio (subsidiaries such as the Tazo Tea Company and Ethos Water). After preparing a balanced scorecard for their 2004 strategies, we compared the actual 2005 data to their goals to measure how successful they were in achieving these goals. In order to prepare a strategic analysis and balanced...
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...and its ownership closer to the final buyer. Channel conflict: Disagreement among marketing channel members. Vertical marketing system :A distribution channel structure in which producer wholsers , and retailers act as a unified system one channel members owns the others ,has contracts with them or has so much power that they all cooperate Future vertical marketing system divided in to two .They are 1.conventional marketing system 2.vertical marketing system Vertical marketing system: A vertical marketing system comprises of the producer, wholesaler and retailer acting as a unified system. One channel member, the channel captain owns the members and has so much power that they all cooperate. It arose as a result of strong channel member’s attempts to control channel behaviour. There are three types of VMS: CORPORATE, ADMINISTERED AND CONTRACTUAL. CORPORATE VMS: A corporate VMS combines successive stages of production and distribution under single ownership. For example Sears obtains over 50% of the goods it sells from companies that it partly or wholly owns. ADMINISTERED VMS: An administered VMS coordinates successive stages of production and distribution through the size and power of one of the members. The most advanced supply-distributor arrangement for administered VMSs involve distribution programming, which can be defined as building a planed, professionally managed, vertical marketing system that meets the needs of both the manufacture...
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...MY EXPECTATIONS ABOUT MARKETING MANAGEMENT AND MY ESTIMATION ON HOW IT WILL HELP ME IN MY CAREER OR ENTREPRENEURSHIP PATH Marketing management is explained by the American Marketing Association (1985) as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives. As a managerial function marketing management is not solely important to the marketing manager only but also necessary to any individual who wishes to develop him or herself in his or her carrier and business. In pursuing this course, I expect to be equipped with knowledge in advertising, promotion, pricing and the distribution of ideas, goods and or services so as to be able to make an informed contribution when decisions concerning marketing in to be made. Knowledge in marketing management will equip me with skills that will make me innovative in my career by knowing which ideas to bring forth to get things working right. Specifically, ideas that will bring positive changes rather than following every decision on marketing made because of lack of knowledge in the field. I also expect to acquire knowledge in managerial skills that will widen my career options. Knowledge in marketing management may guarantee my selection for a job placement in the area of marketing or even better my chances of selection for placement in my career field because of the added knowledge which will give...
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...Executive Summary Barilla SPA, an Italian pasta manufacturer is the world’s largest pasta producer. Due to its multiple distribution channels, the company gradually suffered operational inefficiencies and increasing overhead costs that resulted from fluctuating demand - orders often swung wildly from week to week. Feeling that an alternative approach needs to be implemented for improvement, the company’s former Director of Logistics, Brando Vitali had proposed a new system call ‘Just-in-Time Distribution (JITD). Rather than simply fulfill distributor’s weekly order; the new system requested customer to submit their detail sales data which Barilla could then use to make decision for the “appropriate’ delivery quantities. Unwilling to give up authority and fear of losing potential sales commission or even become unemployed, the new system had met significant resistance within Barilla’s own sales and marketing organizations, and the distributors Barilla approached. The purpose of this report is review the issues and analyze the “Just-In-Time Distribution (JITD) system, in order to further understanding for the decision processes involved in implementing this new supply chain system. Issue(s) Identification As described by Brando vitali: “Both manufacturers and retailers are suffering from thinning margins”. Barilla’s supply chain of dry products was facing significant problems. The following are some of the issues must be reviewed for the company. By viewing...
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...lower prices at compare to its competitors. It is a store where most individuals, who are on a low budget, still get to buy what they set out to buy. Wal-Mart’s low prices made the store a hero of some 45 million low-income Americans. Their loyalty, in turn, made the store a leader in almost every consumer category. * Everyday Low Pricing Wal-Mart is able to shift the low cost advantage to its customers and make the products available at lower prices, everyday. Lower prices were made possible by the company’s mastery of back-end operations and its cutting edge distribution system. * Established Brand Name Wal-Mart has a very well established brand name that is identified with reasonable to cheap pricing and bargain pricing. * Supply Chain and Logistics Capability One of Wal-Mart’s competitive advantages is their remarkable logistics system. They are able to ship merchandise from any of their numerous distribution...
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...fluctuations, especially when demand increases and decreases. The main reason for this phenomenon is a lack of demand information in the supply chains. FORRESTER was the first who mentioned the bullwhip effect in the literature.1 He studied the behaviour of dynamic systems in industrial organisations, by analysing different parameters like stock sizes, production rates and time delays and demonstrated the effects on these parameters, whenever modifications are applied. The outcome of his analysis was, that in a simple production- and distribution system, a small interruption or fluctuation in demand at the retail stage can cause a significantly stronger fluctuation in the whole system.2 These fluctuations have first been considered to be unavoidable and beyond the control of the respective companies. Forrester cleared up that misunderstanding on the basis of a four level dynamic system, showing the organisational structure of a production- and distribution system: Illustration: Bullwhip Effect3 1 2 Forrester, J. (1972), 21ff. Forrester, J. (1972), 22. 3 http://sinaslogisticsblog.blogspot.co.at/2010/04/bullwhip-effect.html (13.01.2015) 1 Matthias Spleit (0966118) There are four main operational factors that stimulate the bullwhip effect:4 1. fixed costs in production, ordering, or shipping, which encourage order batching 2. shortage gaming, which encourages phantom orders 3. price promotions, which encourage forward buying 4. errors in demand signalling, which...
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...Q1. Value proposition Walmart’s value proposition is based on offering Everyday Low Price. This is the core of Walmart’s Business Model, and the rest of the key features of Walmart’s Business Model are aligned to keep the everyday low price. This proposition implies that the customers do not need to wait for sales to have the best deal possible. Besides, not only the sells convenience is associated by providing the wide range of products and services to choose from, but also with one-stop is possible to make all the shopping needed, from groceries to pharmacy. Walmart’ customers save time and money Distribution channel To deliver its value proposition Walmart communicates with and reaches its customer segments with its distribution channels which are owned and direct, and brings higher margin. Walmart also is corresponding with its customers mainly through mass media and other ways which have a low cost, such as internet. Customer relationships Walmart establishes a customer relationship is based on self-service and automated and towards co-creation of some products once it is possible. Walmart tends to reach to the mass market toward mass customisation. Walmart’s customers can be divided into three groups: “brand aspirations”, people with low incomes who are obsessed with brand; “price-sensitive effluents” wealthier shoppers who love deals; and finally “value-price shoppers” who like low prices and cannot afford much more Strong buyer-supplier relationship Walmart...
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...India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why? Suppose, you are the marketing manager of a food products company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why? Suppose, you are the marketing manager of a food products company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why? Suppose, you are the marketing manager of a food products company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why? Suppose, you are the marketing manager of a food products company that is considering entering...
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...SAMPLE growth process toolkit Distribution Channel Optimization Accelerating Growth through Unbiased and Ongoing Partner Evaluation, Selection, and Management SAMPLE INTRODUCTION Growth through Distribution Channel Optimization A recent study determined that high-performance businesses (i.e., the 10 percent that outpace competitors regardless of economic conditions) “excel in the development of meaningful customer insights and practical ways to put those insights into action.” 1 They understand what their customers want, and they know how to deliver solutions that customers will buy. An unwritten, but nonetheless significant, extension of this idea is that they not only know what customers will buy, but where and how they want to buy. In short, no company is successful for its insights alone. Success ultimately depends upon the effectiveness and reach of its go-to-market strategy. Distribution channel optimization is therefore a critical ingredient to sustaining growth through a rigorous customer focus. ∗ D D F F At their most basic level, distribution partners enable suppliers to deliver goods or services to end users, and distributors’ reach significantly influences the extent to which suppliers can engage with customers. On a more meaningful level, distribution partners provide customer service in areas where suppliers cannot or do not (e.g., financing, insurance, training, maintenance, repairs). Taken together, the two deliver an enhanced customer experience...
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...5.1 Situation Analysis This small-town distribution firm was created by James Brunswick, after his employment as a senior logistics officer of a larger-size freight company operating out of Chicago and distributing to seven states. He began this company with only his two college buddies in his grandmothers shed, and with a single loan from the bank, he was on his way to success. Once business began to increase, James decided to relocate to a bigger building, on the outside of the town. Brunswick Distribution implements resale strategies, to get products from manufacturer to retailers on time and efficiently. Simply put, they are classified as single distributors. While BDI is a rather diminutive distribution firm, their customer base spans from all over their local environment. With a focus on quality and efficiency, in and around the tiny town of Moline; however, it still isn’t as little as the shed they began BDI in, for their first nine months of service. (Even without a strategic game plan, they were dedicated to making the company work, and would do whatever it took to ensure that it did.) After the first relocation, Brunswick decided on an additional step, which was a milestone, to say the least. He signed a contract with Kitchen-Aid. Located not far, just 35 miles outside Moline and specializing in high-end kitchen appliances, they signed the agreement in 1992. By the end of 2000, BDI had almost doubled in the area of 10,000 square foot building capacity...
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...Learning Outcomes With this assessment, the student will acquire a good grasp of the application of Digital Marketing concepts where learning is acquired by doing, working with a real life, detailed brief from a company. The Student is required to participate responsibly in the learning process. The student is encouraged to develop research skills, using relevant online and offline resources. The student is expected to engage in prior reading of Class notes, essential reading and video materials. It is advisable for students to use the framework provided for a digital marketing plan but to be flexible and use only what is relevant to the project and your own ideas. Lectures For the Digital Marketing Management module, Students are required to read the digital marketing lecture material and supporting notes online on webcourses in advance of coming to class. Each week there will be a short formal lecture in digital marketing and the student is expected to apply what they are learning from lectures and multiple other sources to the project. From week 4 onwards, for the second hour students are required to bring their completed work to class where the lecturer will be briefed on the group progress over the course of the semester. There will be a selected number of speakers from industry who will deliver guest lectures relevant to the brief. In addition to lectures, student are expected to meet out of class times for self-directed work. Groups Students are required...
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...marketplace it is imperative for organizations to transform their brands and create an ethical supply chain. No longer do “old style” metrics depict the actual value of a brand. The world’s consumers have increasingly become aware of the true costs involved in the production and distribution of an item. Currently, there is a dire need to realize the historically ignored social, environmental, and personal impact throughout the supply chain. Ethical supply chain management in the coffee industry has been addressed through the implementation of the Fair Trade program. This program ensures that coffee bean growers in impoverished countries receive a reasonable wage for their harvest (www.globalexchange.org). In the past, market fluctuation, bean surpluses, and currency disparity severely affected growers’ income worldwide. With such an enormous global demand for coffee, it is sound business practice to compensate these workers fairly and encourage sustainable farming practices. This will decrease the environmental damage caused by the production of beans, leading to a more secure crop supply – positively impacting the coffee market at large. 2. A recent study by the UK’s Institute of Grocery Distribution determined that the majority of consumers do not buy fair trade products. The report noted, “self-interest is at the center of food choice for most consumers. Few consumers consider the impact of their purchase decisions on anyone or anything but themselves and their family.” Do...
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