...coffee as a premium coffee maker, has only two current large threats, Starbucks, and Seattle’s best coffee. The leader of the premium coffee industry is Starbucks and does have the necessary resources to effectively compete with Green Mountain Coffee. Another issue facing Green Mountain Coffee is the threat of new entry. Since the premium coffee industry is a growing market, and with a relatively easy entrance into the market, this in turn increases the overall amount of product in the market and creates an overabundance in product. To combat rivalry as well as ensure supply Green Mountain as been very active in starting up coffee bean farms in South America to ensure quality and availability in the future. One strong point that Green Mountain possesses is that as far as premium coffee producers go, they are highly visible in work place offices as well as available at many gas stations in which they lend or lease coffee making equipment to these establishments and offer superior service, train, and perform preventative maintenance on this equipment. The potential switching costs for the buyers of Green Mountain would make it unattractive for them to switch to another supplier. Threat of Substitutes: A weak force The reasoning behind why the threat of substitutes is a weak force is that on general the reason people drink premium coffee is not to satisfy thirst, it is to enjoy a tasty, hot, caffeinated beverage. The only true threat of substitutes would be premium teas, such...
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...Aqualisa should position Quartz as a premium shower at current retail price, targeting consumers who value styling, multiple setting options, and ease of use (Exhibit 1). Aqualisa’s current portfolio does not offer a premium mixer or power option (Exhibit 2). Quartz could fill this gap and obtain market share from competitors (Exhibit 3) by offering a unique hands-on customer experience. Aqualisa has proven that a working display of Quartz in the showroom is extremely effective. However, it is only available in 25% of showrooms across the UK. To convince more showrooms to carry the brand, Aqualisa should offer trade incentives on MSP for 6 month to demonstrate the selling power of Quartz. This strategy will allow Aqualisa to differentiate Quartz from competitors like Hangsgrohe, while maintaining market share in other channels, resulting in minimal cannibalization (Exhibit 4). Already recognized as a premium brand, Aqualisa can leverage its innovative technology and tailored campaigns to build brand awareness (Exhibit 5) and quickly become the top player in the premium space. A number of other options are also presented: targeting consumers, DIY or developers. Marketing to consumers alone may be ineffective, as they rely heavily on plumbers to select a product. This approach is also expensive, requiring mass media advertisements in an industry where brand awareness is low. While Triton was successful in building awareness, their sales are mainly in cheap electric segment (Exhibit...
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...Global Corporate Relations | August2014 March 2013 Content 2 3 HEINEKEN | Proud, Independent, Responsible Global Brewer The world’s most international brewer No 1 in Europe and No 2 in the world by revenue Operations in over 70 countries globally Brewing great beers, building great brands Committed to surprising and exciting consumers everywhere Long and proud history and heritage 4 HEINEKEN | Our Values Enjoyment we bring enjoyment to life Respect for individuals, society and the planet Passion for quality 5 HEINEKEN | Brewing Great Beers, Building Great Brands Heineken®, our flagship brand, is the world’s leading international premium beer Desperados, Sol, Affligem and Strongbow Apple Ciders complement our global brand portfolio Altogether, we have over 250 international premium, regional, local and specialty beers and ciders in our portfolio Passion for quality and Innovation are at the heart of how we build great brands and delight our consumers 6 HEINEKEN | A Long and Proud History & Heritage 1864 The Heineken Family enters the beer business 1869 We switch to bottom fermentation: clearer, purer, long lasting beer 1886 Dr. H. Elion cultivates the Heineken A-yeast => unique flavour 1889 We are crowned at the Grand Prix Paris for quality, focused innovations 7 HEINEKEN | A Long and Proud History & Heritage 1928 Early stages of unique advertising and becoming truly international 1929 HEINEKEN moves into...
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...Study case : Diesel “Live, breathe and wear passion” 1 : Explain which of the promotional strategies used by Diesel are above- or below-the-line. Analyse the impact that each approach might have ? There are two different types of promotional strategies. One is above the line and the other one is below the line. Above the line is using the media like television, radio to promote your product to a mass audience. Below the line is looking to reach a customer not a whole bunch of people, an example of a below the line is using catalogues, direct mail. An above the line strategy used by diesel is through commercials and billboards. The Television ad of diesel has probably the biggest impact to their company because everyone watches television. When people see their advertisement they will think about the product and if they like it they might go to a Diesel store and buy their products. Another above the line strategy that Diesel uses is music. They now have their own radio station and they sign bands that are unknown and give them a chance to be heard by people. This can help Diesel to promote their company because when the unsigned band becomes famous Diesel will sponsor them when they go to tours and concerts. People who like the band will copy what their wearing and therefore diesel will be able to sell. A below the line strategy that Diesel uses is they have special offers. Customer’s loves special offers, so when they see that Diesel has a special offer, they...
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...1. Explain which of the promotional strategies used by Diesel are above- or below-the-line. Analyze the impact that each approach might have. There are two different types of promotional strategies. One is above the line and the other one is below the line. Above the line is using the media like television, radio to promote your product to a mass audience. Below the line is looking to reach a customer not a whole bunch of people, an example of a below the line is using catalogues, direct mail. An above the line strategy used by diesel is through commercials and billboards. The Television ad of diesel has probably the biggest impact to their company because everyone watches television. When people see their advertisement they will think about the product and if they like it they might go to a Diesel store and buy their products. Another above the line strategy that Diesel uses is music. They now have their own radio station and they sign bands that are unknown and give them a chance to be heard by people. This can help Diesel to promote their company because when the unsigned band becomes famous Diesel will sponsor them when they go to tours and concerts. People who like the band will copy what their wearing and therefore diesel will be able to sell. A below the line strategy that Diesel uses is they have special offers. Customer’s loves special offers, so when they see that Diesel has a special offer, they will go in the shop and possibly buy their products. Another below...
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...Global Corporate Relations | August2014 March 2013 Content 2 3 HEINEKEN | Proud, Independent, Responsible Global Brewer The world’s most international brewer No 1 in Europe and No 2 in the world by revenue Operations in over 70 countries globally Brewing great beers, building great brands Committed to surprising and exciting consumers everywhere Long and proud history and heritage 4 HEINEKEN | Our Values Enjoyment we bring enjoyment to life Respect for individuals, society and the planet Passion for quality 5 HEINEKEN | Brewing Great Beers, Building Great Brands Heineken®, our flagship brand, is the world’s leading international premium beer Desperados, Sol, Affligem and Strongbow Apple Ciders complement our global brand portfolio Altogether, we have over 250 international premium, regional, local and specialty beers and ciders in our portfolio Passion for quality and Innovation are at the heart of how we build great brands and delight our consumers 6 HEINEKEN | A Long and Proud History & Heritage 1864 The Heineken Family enters the beer business 7 1869 We switch to bottom fermentation: clearer, purer, long lasting beer 1886 Dr. H. Elion cultivates the Heineken A-yeast => unique flavour 1889 We are crowned at the Grand Prix Paris for quality, focused innovations HEINEKEN | A Long and Proud History & Heritage 1928 Early stages of unique advertising and becoming truly international ...
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... 1. Identify core competencies and competitive advantages; Premium Product/Quality Driven - V Strong Relationships with Suppliers - VR Is in 25 different Markets - VR Technology developments - VRIO 2. Conduct a scenario analysis (Decline, Leap Ahead, Same But Better); Decline Scenario: If Mutti does not branch outside of just using Italian tomatoes, then there is a limit to how much their market can grow because of the limited supply of tomatoes in Italy. The consumers may also move more towards the private label buying less of Mutti’s products which could be awful for Mutti S.p.a. Leap Ahead Scenario: If Mutti realizes that it must change and adapts to using more than just Italian tomatoes, but can still retain their image and successfully enter new markets then they can continue to move forward. Same But Better Scenario: To improve on their current scenario, if Mutti can continue to dominate its’ market share in Italy by continue to supply a premium product and holding on to its’ company culture. Mutti could also look into starting up their own greenhouses and growing a premium quality tomato themselves. This way, they can supply more tomatoes to their customers in the future. 3. Evaluate the strength, weaknesses, opportunities, and threats for Mutti S.p.a. using the change grid. Strengths: > W * Dominates Italian Market Share * Relationships with Farmers * Quality and Brand Recognition Weaknesses: < S * Lack of Presence in non-European...
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...1.0 Competition in premium chocolate industry The competition in the premium chocolate industry can be explained by applying the Porters 5 forces model. This model, named after Michael Porter (1979), can be looked upon as a framework to analyze and structure an industry. It is a theoretical tool to elaborate the potential threats but also the chances of a particular industry. Porter mentions five forces that have an impact on an industry; suppliers, buyers, potential entrant, substitutes and the rivalry among existing firms. (Production of Analysis, viewed 11th June, 2010) The Porters 5 forces model for Chocolates premium industry Bargaining power of suppliers In production of premium chocolate the primary raw material is cocoa bean, secondary sugar, and milk. Concerning sugar and milk, there are numerous suppliers of these materials available around the world; there is no concentration, neither a necessary differentiation. Manufacturers can use financial techniques such as hedging in order to reduce the impact of price rises on their own margins. In addition to the fact that according to CAOBISCO, there are 4.5 million of cocoa farms around the world, to whom the chocolate manufactures are an extremely important customer, the bargaining power of the chocolate premium industry suppliers is generally low (CAOBISCO, 2009). ). However since the fine grade cocoa production represents a small part of the world’s supply, the bargaining...
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...Neptune was an upmarket premium brand, and Neptune wants to preserve its premium image among customers. Recently they made huge investment in technology to improve catching processes but in turn it leads to problem of piling up of inventory. The solution of this problem depends up on the nature of problem; if problem is Neptune specific and temporary then they can do away with it by dumping it into some other market, but if it is industry wide phenomenon then they must launch a low price brand. Table of Contents Serial No.ContentsPage No.1Situation Analysis52Problem Statement53Options54Criteria65Evaluations of options66Recommendations77Action Plan7 Situational Analysis Neptune Gourmet Seafood, North America's third-largest seafood producer. It has nearly 4% market share. Neptune was an upmarket premium brand. They are having tagline "The Best Seafood on the Water Planet" and they adhere to that. Neptune focus was always on to preserve its premium image among customers by improving their product continuously The company reached its consumers, who were extremely demanding, through various channels. Neptune generated about 30% of its revenues by selling frozen and processed fish products to U.S. grocery chains. The Neptune's Gold line of seafood products, manufactured in two sophisticated plants near Cedar Key, Florida, and Norfolk, Virginia, dominated most segments in terms of quality, and therefore sold at premiums compared with other brands. Neptune had emerged...
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...must understand how they differ from their counterparts elsewhere, from other Chinese consumers, and from one another. Yuval Atsmon and Vinay Dixit 2 Talking about wealthy consumers in China may seem odd during the middle of a global economic crisis. Yet for many companies around the world, wealthy Chinese represent a rare opportunity in an otherwise dismal picture. Despite the global downturn, the number of wealthy households in China continues to grow. By 2015, the country will hold the world’s fourth-largest concentration of wealthy people. Companies that better understand the factors behind their purchases could steal a march on the competition. Our research shows that their behavior is very different from that of their counterparts in other countries and of consumers in other income classes inside China.1 Indeed, the pool of luxury consumers has become large enough to form distinct segments, each with its own behavior and needs. Our work included face-to-face interviews in 16 cities with 1,750 wealthy Chinese consumers—people in households earning more than $36,500 annually, which gives them the spending power of a US household making roughly $100,000 a year. These wealthy Chinese households, with an average annual income of about $80,000, represented the top 1 percent of earners in China’s cities. We supplemented the interviews with home visits by our researchers, who also accompanied many respondents on shopping trips. In addition, we talked with brand managers and...
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...How Starbucks' Growth Destroyed Brand Value Cenk Kazanci Southern State University Abstract In February 2007, a leaked internal memo written by founder Howard Schultz showed that he recognized the problem that his own growth strategy had created: “Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.” Starbucks tried to add value through innovation, offering wi-fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem: Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special. Either you have to cut price (and that implies a commensurate cut in the cost structure) or you have to cut distribution to restore the exclusivity of the brand. Expect the 600 store closings to be the first of a series of downsizing announcements. Sometimes, in the world of marketing, less is more. How Starbucks' Growth Destroyed Brand Value Schultz sought, admirably, to bring good coffee and the Italian coffee house experience to the American mass market. Wall Street bought into the vision of Starbucks as the “third place” after home and work. New store openings and new product launches fueled the stock price. But sooner or later chasing quarterly earnings growth targets undermined the Starbucks brand in three...
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...* PROBLEM: How to increase sales and presence of Carvel in the Beijing Market by educating customers and distributors on a limited advertising budget. * ISSUES: Market-Bob- We can see that Carvel choose Beijing as it first regional market in China to develop, because it’s large population and in which the residents’ income had increased fast. (Average annual base incomes had risen by 75 per cent over the past three years to 161,00Rmb). However, we find that Beijing might not be the best city for Carvel to start its business: first, residents in Beijing are insistent at keeping their old life style and reluctant to try new things, so that they may not very welcome carvel and its products, which might be considered a novel food and a symbol of western life-style. Actually, it is very difficult to change Beijing’s old life style, which has been forged over hundreds years since the city became the capital of China in Ming dynasty. Second, Beijing is in the northeast of China, where is usually very cold in winter- the lowest Temperature in winter may below 10 degrees Fahrenheit. So, the demand to ice cream products in winter in Beijing might be low. * Industry-Bob- We find that there are two categories of ice cream products in Beijing: standard product, which is lower quality, sold in a low price; and premium product, which is customized high quality product, sold in a relatively high price. We did not see that Carvel took much effort to Position itself in either...
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...Schultz Wines Limited: Pre-seen Information Examination Case Study: What type of organization is Schultz Wines Limited? Schultz Wines Limited was established in 1840’s by one of the founding winemaking families of Barossa Valley in South Australia who had migrated from Germany. The company was listed on the Australian Stock Exchange in 1996 and operates from a single site located in Barossa Valley. The company’s current Managing Director, Fred Schultz, is a fifth generation winemaker, a direct descendent of original Schultz family, and the company maintains the tradition of being an independent family wine company with premium brands, despite being a publicly listed company. What industry, product segments/markets does Schultz Wines Limited operate in? Schultz Wines Limited is the 7th largest company in the Australian Winemaking Industry and competes in key export markets in North America, Europe and Asia. Core activities cover grape growing and procurement, harvesting, crushing (includes crushing for other wineries), storage and fermentation of grapes and distribution to local & international markets, having vertically integrated, Schultz Wines has had its own vineyard and produce 20 per cent of its grapes requirements. Schultz Wines does not bottle its wines. They are bottled by a nearby bottler that also packs them ready for distribution to various markets. Schultz Wines operate in all three major product segments: Table wines (includes Red & White varieties)...
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...Old El Paso Case Notes Background • Established in 1938brand equity • Subsidiary of General Mills strong parent brand Problem/Opportunity • Need to develop a marketing plan for the brand • Implement a growth strategy that will result in a 5% sales increase for the brand while maintaining the current profitability Analysis • Strengths o Very large market shareequity, customer base, loyalty o Currently they are under General Mills which is the 6th largest food company, they already have so many brand in the US , and on average 1 shopper placed at least one GM product in their grocery cart during each visit -> has brand awareness and experience o diversified product line o Sold in 98% of grocery stores large distribution channels, market development • Weaknesses o Customers don’t think about Mexican food as a number one meal, it is does not have top of mind awareness and if they do think about it they wonder if it’ll be too complex o Mature brand in a slow growing market-> Cash caw, means they need to either introduce a new product in this mature market or find new uses for their current products and promote them to get new clientele to grow at the mature stage • Opportunities o General Mills-> large brand recognition and know how to launch successful marketing campaigns and new products • Threats o It is considered a premium product in Mexican meal kit section as majority of the products are priced higher than the competitors o Customers want a quick...
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...Apple – An introduction to Marketing Strategy This company almost needs no introduction. Although I am not really a fan of their products, there is no denying the huge success of Apple: the technology company now has the highest market capitalization in the world at $573 billion, which is more than Microsoft and Google’s valuation combined; the firm is the most admired company in the world; and the Apple brand value is worth $153.3 billion alone. The list is simple endless… Having only briefly spoken about Apple before, this post will show how the firm’s success is based on simple marketing concepts. The Product Life Cycle (PLC) [pic] Apple’s iPod is a textbook example of how to manage the PLC from introduction through to decline. The PLC consists of 4 stages: New Product Development, Introduction, Growth, Maturity, Decline. But it is the introduction and maturity stages where Apple’s marketing ability really shows. [pic] What sets Apple apart from every other technology company is how it utilises its Apple stores to create over-the-top product launch events and generate free publicity. Every time Apple launches a product (not just iPods), all employees make an effort to ensure each customer is congratulate the new owners. It is simple but effective: thousands queue outside – even camping out for several days – just to experience a product launch by Apple. This is entirely unique to Apple – one cannot even imagine consumers showing the same amount...
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