...Bel Brand: The Laughing Cow Challenge Author Note This paper was prepared for Principles of Marketing Bel Brand: The Laughing Cow Challenge Introduction Bel Group was established in 1865 by Jules Bel, a French cheese maker, who discovered that melting cheese and butter would significantly extend the shelf life of cheese. Since its establishment in Jura, France, as a subsidiary of Fromageries Bel, the group has successfully expanded its own corporation to 5 continents. 31 countries. It is currently being sold in over 120 countries and continues to enjoy successful growth with 2.7% sales growth in 2013 (http://www.bel-group.com/en/group/key-figures). Bel’s Flagship brand was discovered by Léon Bel in 1865 and was called, “La Vache Qui Rit”, or “The Laughing Cow”. According to bel-group.com “The global success of Bel's brands can be illustrated by the 10 million portions of The Laughing Cow® consumed every day in the world, the equivalent of 1.5 billion square of Kiri® produced and nearly 4 million rounds of Leerdammer® sold in 2012.” Florent Champagnat, a replenishment process manager of Bel Group in 2012, described the Laughing Cow, as “an easy to carry wedged cheese, especially convenient for families with young children.” He also described the brand as “innovative for its time”, and as one of the reasons for its rapid successful rise. The company’s success has extended to other brands, including Babybel/Mini Babybel, Kiri, Leerdammer, and Boursin, to...
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...the U.S. market? What are the strengths and weaknesses of the brand? Bel Brand is currently in a downward sales trend after the South Beach Diet craze ended in 2006. Before this diet became popular, Bel Brand applied a global “one size fits all” marketing campaign promoting wholesome family values and a passion for providing nutrition. They wish to somehow reinstall such values into their brand image while trying to differentiate themselves from the flood of other United States cheese brands using a similar family-oriented approach. Some of their current strengths include an increased brand awareness resulting from the South Beach Diet craze. This provides the Bel Brand with credibility in the health food industry, thus presenting Laughing Cow with an opportunity to leverage their healthy image to appeal towards a larger audience of health-conscious Americans. Weaknesses however, include Bel’s declining market share (5%) and intense competition in United States cheese industry. Competitors such as Kraft and Sargento are currently using their traditional method of stressing family-oriented products and wholesome values. Now, Bel Brand finds itself in a situation where they need to act quickly to make some repositioning decisions. 2. Consider each of the 3 positioning alternatives described in the case and list several strengths and weaknesses of each alternative. The first alternative is to position the brand in a manner consistent with its European heritage as a family...
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...levels. The first is its level of growth within the market, while the second measures its market share relative to the competition within its industry. To help businesses further analyze its assets, the matrix divides the business units or products into four categories, including: Stars: The business units or products that have the best market shares and generate the most cash are considered stars. However, because of their high growth rate, stars also consume large amounts cash. This generally results in the same amount of money coming in that is going out. Stars can eventually become cash cows if they sustain their success until a time that the market growth rate declines. Cash cows: Cash cows are the leader in the marketplace and generate more cash than they consume. These are business units or products that have a high market share, but a low growth prospects. According to NetMBA, cash cows provide the cash required to turn question marks into market leaders, to cover the administrative costs of the company, to fund research and development, to service the corporate debt, and to pay dividends to shareholders. Dogs: Business units or products that are dogs are those have both a low market share and low growth rate. They don't earn a lot of cash, nor do they consume a lot. Most likely these aspects of a business are making little, if any money. Dogs are generally considered cash traps...
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...The BCG Matrix, the Growth-Share Matrix and Portfolio Analysis If you enjoy vivid visual metaphors for business, then you'll love the Boston Matrix! Also called the BCG Matrix, it provides a useful way of screening the opportunities open to you, and helps you think about where you can best allocate your resources to maximize profit in the future. Understanding the Model Market Share and Market Growth To understand the Boston Matrix, you need to understand how market share and market growth interrelate. Market share is the percentage of the total market that is being serviced by your company, measured either in revenue terms or unit volume terms. The higher your market share, the higher the proportion of the market you control. The Boston Matrix assumes that if you enjoy a high market share you will be making money. (This assumption is based on the idea that you will have been in the market long enough to have learned how to be profitable, and will be enjoying scale economies that give you an advantage). The question it asks is, "Should you be investing additional resources into a particular product line just because it is making you money?" The answer is, "not necessarily." This is where market growth comes into play. Market growth is used as a measure of a market's attractiveness. Markets experiencing high growth are ones where the total market is expanding, meaning that it’s relatively easy for businesses to grow their profits, even if their market share remains stable...
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...1) Star | Problem child | Cash cow | Dog | SnapchatWhatsApp | KakaoTalk | Facebook | WeChat | 2) Facebook – Cash cows are products or services that have achieved market leader status and provide positive cash flows. These products produce profits long after cash back is achieved. By generating steady streams of income, cash cows help fund the overall growth of a company. They (like Facebook) usually bring in cash for years, until new technology or shifting market preferences renders them obsolete. This is why I put Facebook at cash cow because it has all these features. Snapchat - Stars are high growth products competing in markets where they are strong compared with the competition. Often Stars need heavy investment to sustain growth. Eventually growth will slow and, assuming they keep their market share, Stars will become Cash Cows. Snapchat is still growing so is in the Star stage but will eventually join Facebook in cash cow 3) WeChat will be facing some facors that are causing a threat to the success of it. One of these factors is that WeChat is not growing. WeChat is based in China which can be a good thing as there are so many people living in china however over time when everyone in China has tired WeChat the demand for it will no longer grow and demand will fall rapidly so they need to expand to other countries like apps such as Facebook has done in order to continue growing and no face a massive problem in the years to come. The second factor is the growing...
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...SABMiller STRATEGY The direction & scope of an org over the long term, which achieves advantage in a changing environment through its configuration of resources & competencies with the aim of fulfilling stakeholder expectations. * 3-5 plans are appropriate according to Fast Moving Consumer Goods (FMCG) companies, which includes non-food consumer products Porter’s Generic Strategies (Bases of Competitive Advtg) Differentiation Strategy – differentiates its products from competitors’ in a way to make them more appealing across whole market. Customers are willing to pay extra for difference. SABMiller differentiates their products by satisfying customer’s need through a sustainable competitive advantage. It allows SABMiller to desensitize prices and focus on value that generates a comparatively higher price and a better margin. Cost Focus – if premium price unlikely, so could be suitable due to closeness to customers, local firm w/ low costs overall. Bowman’s Strategy Clock – analyse the competitive position of a company in comparison to the offerings of competitors. Hybrid (moderate price/moderate differentiation) They offer products at a low cost, but offer products with a higher perceived value than those of other low cost competitors. Volume is an issue here but these companies build a reputation of offering fair prices for reasonable goods. The quality and value is good and the consumer is assured of reasonable prices. This combination builds customer...
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...KES SHROFF COLLEGE OF ARTS AND COMMERCE SUBJECT:- STRATEGIC MANAGEMENT PROJECT REPORT ON: B.C.G. (Godrej) And G.E (Yamaha) SUBMITTED TO PROF. Shweta Mishra PRESENTED BY: Group no. 6 MEMBER DETAIL ROLL NO. | NAME | SIGNATURE | SDMS036A | DIPIKA JAIN | | SDMS037A | SHRENIK JAIN | | SDMS038A | AISHWARIYA JOGIA | | SDMS039A | SMRUTI JOSHI | | SDMS040A | VISHAL JOSHI | | SDMS041A | POOJA KAPADIA | | SDMS042A | ASIF KHAN | | ACKNOWLEDGEMENT An old Chinese proverb says; When eating your bamboo sprouts, remember the man who planted them. Now that our sprouts are ready to eat, it is time for us to express our deepest gratitude to all those to have made this possible. We wish to express our sincere gratitude to prof. “ ”, who guided and helped us from time to time to successfully conduct this research. We think her directions were the best thing that could happen to us and our project. We would also like to thank our college for letting us use the library. We hope you enjoy reading the report as much as we enjoyed making it. INDEX SR.NO | Topics | Page No. | 1. | B.C.G Matrix | 5 | 2. | Diagram & its Explanation | 6 | 3. | Godrej | 8 | 4. | G.E Matrix | 11 | 5. | Diagram & its Explanation | 12 | 6. | Yamaha | 13 | 7. | Comparison between B.C.G & G.E Matrix | 16 | 8. | Conclusion | 17 | 9. | Bibliography | 18 | B.C.G MATRIXBoston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix)...
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...Services marketing mix: the 7 Ps • Product • Price • Place • Promotion • People • Process • Physical evidence Persona Services marketing mix: 1. Product: persona sells everything that enhances beauty of both male and female. Persona has separate units for male and female customers: Persona Adams and Persona Beauty Parlor. Along with that Spring Spa and Gym ensures Beauty of face, body and mind. Various services designed and monitored by experts ensure maximum quality. Persona helps flourish natural beauty as well as provides make over opportunity and through Persona Studio, one can frame it. Canvus magazine will help the customers to learn and apply various fashion and beauty concepts. 2. Price: fo Persona applies value based pricing. It offers a range of services, starting from a minimum standard price. Customer segments are considered from middle income groups to high ends for Spring Spa. 3. Place: Persona selects the places in Dhanmondi 27, Mirpur, Banani and Gulshan in Dhaka and in Panchlaish of Chittangong. The places are very convenient for the target groups and are in prominent locations of the cities. 4. Promotion: * Persona is mainly promoted through word of mouth. It is well known to the beauty lovers of the city and the CEO Kaniz Almas Khan is a celebrity make up artist which makes persona a very trusted name. * However, in the early stages it had promotional offers in 1st Boishakh and ads published in newspaper. Nowadays the...
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...From the Wall Street Journal of “H&M Opening Online and Physical Stores at Record Pace” that stress H&M opening online and more physical store in Swedish, predicting the two retail universes will complement rather than cannibalize each other. Saving money takes time and sensible planning. As for an online business owner saving money leads to further funds for the business. Physical Stores shopping and online shopping have their own positives and negatives. With careful research, a shopper can find many deals when combing both Physical Stores and online shopping. H&M had 3,970 physical stores as of Feb. 29, and its net profit in the three months to Feb. 29 was 2.55 billion Swedish kronor ($313 million). H & M plan to open more than 425 stores by November. H&M is already of the second-biggest clothing retailer in the world. H&M having built its own state-of-the art distribution network, the company is leaving the competition in the dust in terms of sales and profits, speed of inventory management and turnover, it adopt corporate vertically integrated system in which it could control every aspect of the supply chain, from design and production to distribution and retailing, corporate VMS is Vertical marketing system that combines successive stages or production and distribution under single ownership. Channel leadership is established via common ownership. Effective vertical integration makes H&M faster, more flexible, and more efficient than competitors...
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...generate revenues for the company. Firms should get rid of the products that fall in this cell as they tend to require huge investments from time to time. • b. Cash Cows. In a slow growth market products that hold a high share are represented by the Cash Cows in the BCG matrix. Cash Cows generate revenues more than that is invested in them since they are the leaders in the mature market. Firms can still continue to have them as a part of the portfolio till they eventually become dogs and stop generating revenues. • c. Question Marks (also known as the ‘problem child’). These products have low market shares and do not generate much cash. However, these products are in a rapidly growing stage and thus consume large amounts of cash. A question mark has the capability to gain market share when the market growth slows, and can thus become a star and finally a cash cow. Before making the investment required to grow the market share. Question marks must be analyzed carefully in order to determine their potential. • d. Stars. These products generate high amounts of income as they are in high growth markets with a relatively high share of that market. However, they require large amounts of investment because of their high growth rate. When the market growth rate decreases, a star will become a cash cow, if it...
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...Question 7 Discuss the four major factors that influence consumer buyer behavior in relation to Red Bull. Cultural Sub cultural: The Red Bull would preferably be for people or teenagers who like to have late nights and also people who is always on the move and people who is still studying who is in there 30 years of age . Social Class Red Bull is an expensive drink so people with an above average will enjoy Red bull. Social Family: Families who have children in their teenage years will buy Red Bull, maybe if their have active lifestyle also taking part in sport. Reference groups Scholars who play sport or even who study late nights take Red Bull to keep theit bodies awake and have a boost. Personal Age and life cycle stage: students between the age of 14 &19 will take the Red Bull energy drink even people who participate in sports or people who drive long distance also make use of it because it long hours and they to be awake. Occupation People that are in a sales environment use Red Bull more often energy drinks especially red bull. They can afford it and have to be alert because they dealing with clients all the time have to be professional. Economic situation The economic don’t play such a big role because it is a luxury product and if a person can afford it they can buy it if necessary. Personality People who study and people who have late nights, drivers or people who are working in a factory who works long extended hours need to be awake take red...
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...12/02/2011 Strategy Analysis of H&M | Maissaa BEN TAHRA | Strategy: Dr Darrell Jaya-Ratnam | Knowledge, Strategy and Business Analysis | Strategy: Dr Darrell Jaya-Ratnam | Knowledge, Strategy and Business Analysis | REPORT OF STRATEGIC ENVIRONMENT ANALYSIS | There are many external factors affecting the fast fashion industry most importantly in H&M’s case is the transportation cost and price of oil | External factors change in the markets of production. Raw material prices have increased; cotton prices for example almost doubled in 2010. H&M has to adapt to changing conditions but always in accordance with their business concept – to offer customers fashion and quality at the best price. | There is a mix of external shocks in the fast fashion industry: * Economic slowdown * Energy costs (oil price) * Employment level * Change in regulations * Logistics (i.e. shipping time) * Transportation cost and time (H&M owns design but do not own factories therefore it is importing most of its goods from china which results in high transportation costs) * Use of IT * Raw material price fluctuation (e.i: cotton’s price have doubled up in 2010) There is a mix of external shocks in the fast fashion industry: * Economic slowdown * Energy costs (oil price) * Employment level * Change in...
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...share • Step 4. Find out market growth rate • Step 5. Draw the circles on a matrix Step 1. Choose the unit. BCG matrix can be used to analyze SBUs, separate brands, products or a firm as a unit itself. Which unit will be chosen will have an impact on the whole analysis. Therefore, it is essential to define the unit for which you’ll do the analysis. Step 2. Define the market. Defining the market is one of the most important things to do in this analysis. This is because incorrectly defined market may lead to poor classification. For example, if we would do the analysis for the Daimler’s Mercedes-Benz car brand in the passenger vehicle market it would end up as a dog (it holds less than 20% relative market share), but it would be a cash cow in the luxury car market. It is important to clearly define the market to better understand firm’s portfolio position. Step 3. Calculate relative market share. Relative market share can be calculated in terms of revenues or market share. It is calculated by dividing your own brand’s market share (revenues) by the market share (or revenues) of your largest competitor in that industry. For example, if your competitor’s market share in refrigerator’s industry was 25% and your firm’s brand market share was 10% in the same year, your relative market share would be only 0.4. Relative market share is given on x-axis. It’s top left corner is set at 1, midpoint at 0.5 and top right corner at 0 (see the example below for this). [pic] Step 4. Find...
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...The Dugong By: Erin Shuey The Dugong is a marvelous animal! Did you ever hear of an mammal that lives in coastal waters, eats underwater grasses, and are related to the manatees? Or has brown, gray leathery skin and they’re referred to as the sea cow. Well if you keep on reading you’ll learn about one called the Dugong. You can learn the Dugong's Lifecycle, diet, birth, habitat, and the similarities and differences from Manatees. The Dugong has three interesting stages in life. The first step of a dugong’s life is when they are born. The mother will have her calf in warm, shallow water. The second stage of their life is becoming an adult. This stage occurs when they are about 9 to 17 years old, at this age they can also start reproducing. The last stage of their life is death. A Dugong’s average lifespan is 70 years, scientist...
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...Young and Dumb A cow can be a friendly or scary animal. Both personalities I have come in contact with. Just because some of them look cute or friendly, doesn’t mean that they will always be nice. Also remember that they are always hungry and no matter what, food is always on their mind. During one boring afternoon when I was about ten years old, I decided to go outside and play with our “pet” cows that we had raised since they were calves. Even though I was young, I told my parents that I would be fine to go out alone. My mother did not want any part of it but I insisted that I would be fine by myself. As I walked through the gate of the pin something didn’t seem normal. We also had a dog named Peanut that stayed in the same pin with the cows. Normally she liked to stay around them but this time she was on the other side of the field. I seemed to notice that the cows were acting more aggressive than normal. I thought in my head that I might have made a mistake by going out alone. As I tried to go near the cows they started charging at me. I assumed they were looking for food because it was getting to the time of day we usually feed them. Suddenly I had to start running because if not, I more than likely would have gotten trampled by two massive cows. I soon headed for the barn running as fast as I could possibly go to look for safety. “Locked, why is the door locked!” I said to myself as I was running around the barn in a frantic. We always had a bucket sitting outside of...
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