...At Pacific Brands we touch the lives of everyday people. We are accessible. We are iconic. We are everyday! Pacific Brands has come a long way from manufacturing Dunlop bicycle tyres in 1893. Today, Pacific Brands is famous for marketing iconic everyday brands our consumers love including Berlei, Bonds, Clarks, Dunlop, Everlast, Grosby, Hard Yakka, Holeproof, Hush Puppies, King Gee, Mooks, Mossimo, Razzamatazz, Sheridan, Slazenger, Tontine, and Volley. With our headquarters in Melbourne, Pacific Brands has operations throughout Australia, New Zealand, United Kingdom, Malaysia, China and Indonesia. The passion of our 5,000 employees is the driving force behind our success. Last financial year Pacific Brands generated sales of over $1.6 billion. Our participation in an extensive range of product categories, coupled with our strong and diversified customer network, underpin our position as a market leading supplier of everyday brands to the Australasian retail marketplace. We make in excess of 300,000 different products and sell over 200 million units per year. We leverage the benefits of our scale to increase efficiencies and generate innovation across the entire company. Ultimately, we seek to improve our speed to market and deliver quality products to our customers. Our brands have become iconic household names with the support of Australian sporting legends such as Sir Donald Bradman, Ken Rosewall, Evonne Goolagong Cawley, Margaret Court and Mark Waugh. Current identities...
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...CASE STUDY 2 : PACIFIC BRANDS : Re Building Brands Module 3: Internal Environment Pacific Brands Limited (Pacific Brands) is an Australia based provider of everyday essential brands. The company manufactures, sources, markets and distributes underwear, hosiery, socks, intimate apparel, workwear, corporate uniforms, bed linen, quilts, pillows, mattresses, foams, footwear, carpet underlay, fashion apparel, and sporting apparel and goods markets. Business Strategy Pre-2009 The company was established with private equity funding and corporate strategy, which was aligned, was to achieve growth by a continuous introduction of new brand with the manufacturing base in Australia. The company was host to over 900 labels, 350 brands and had about 8000 staff. Consequences: $ 800mn debt and market cap. down to $100mn. Due to the globalization the local manufacturing base became redundant. It was far too complex a strategy with the kind of existing capabilities of the company. Pacific Brands was yet another large company that went on a spending spree at the top of the market when debt was cheap. Operationally, Pacific Brands has also demonstrated some peculiar strategies. It was strange that it had retained any manufacturing in Australia as most in this industry decided years ago the economics of producing such goods here did not stack up. Post -2009- major restructuring plan. - Shifted Mfg base to China – to offset high local mfg costs. - Reduced/streamlined...
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...Financial Analysis Pacific Brands Release Date: 30th September, 2011 Table of Content 1. Ratios Summary 1 2. Financial Analysis 2 3. Recommendation 9 Appendix I: Calculation Illustrations 11 Appendix II: Further Calculation Illustrations 17 Appendix III: Figures 18 Appendix IV: Executive Summary 19 1. 2. Ratios Summary Ratios | Pacific Brands, 2010 | Industry | Unit | Liquidity | | | | Current Ratio | 2.69 | 2.67 | times | Quick Ratio | 1.66 | 1.92 | times | | | | | Activity | | | | Days Inventory | 98.93 | 50 | days | Days Receivables | 51.12 | 25.78 | days | Days Payables | 60.38 | 58.83 | days | Total Asset Turnover | 0.81 | 3.17 | times | Fixed Asset Turnover | 13.33 | 5.26 | times | | | | | Profitability | | | | Net Profit Margin | 3.05 | 2.45 | % | Return on Assets | 5.91 | 7.77 | % | Return on Equity | 4.03 | 16.8 | % | Quality of Income | 254 | 7.03 | cents | | | | | Leverage | | | | Times Interest Earned | 2.64 | 64.72 | times | Assets/Equity | 1.63 | 2.16 | times | | | | | Dividends | | | | Dividend Yield | 0 | 4.75 | % | Price/Earnings Ratio | 15.44 | 12.16 | times | | | | | Note: Calculation in details is available in Appendix I 3. Financial Analysis 2.1 Tests of Liquidity 2.2.1 Current Ratio | Pacific Brands Ltd | Industry Average | Current Ratio | 2.69 | 2.67 | The current ratio for Pacific Brands Ltd in 2010 was 2...
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...Pacific Brands 1. How has the organization performed in its implementation of the strategy? Customer perspective: Low performance No detail about customer satisfaction, repeat business, market share, product loyalty in case fact. However, sales in cornerstone brand Bonds fell, Kmart replaced Bond with its home-brand might indicates the decreasing of customer loyalty. Troubled footwear, outwear & sport business Internal process perspective: low to medium performance Profit margin and EBITA improved strongly indicate that the focus on simplify business operation and cost saving has delivered results. This is despite Pacific Brands exposed the impact of rising costs for cotton, Chinese labour and freight in the weak sales retail environment. Dividend reinstated in the 1st half year of 2011 also indicates ROE has improved. Learning and growth perspective: low to medium performance Downsize from 900 labels, 350-odd brands & 8000 staff to less than 100 brands; cut down 1800 jobs with 1200 made redundant in manufacturing Recruited talent top management team to ensure strategy capacities are developed to achieve future strategy goals. Strong market focus to ensure future sustainability and growth Financial perspective: low performance Debt level has been reduced, dividend has been restated, profit margin & EBITA have improved 30.1% to $104.5m 3-year restructuring program is on track to deliver net cost savings of $150m. However, sales decreased...
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...Introduction In 2009 Pacific Brands reviewed operations throughout its manufacturing sites across Australia. As a result they took the decision to lay off 1850 employees as it wound down the majority of its local manufacturing. The following text will look the contributing factors that influenced this decision and the effects of organisational behaviour made to the remaining work force. In addition when consider how to move forward, Pacific Brands must consider what steps to take to motivate its surviving workforce and the impact that wider environmental factors have on the organisations ability to effectively manage change. Question 1 In many organisations the ability to manage change successfully and transform organisations in an increasingly turbulent world will be a defining factor between those who succeed and those who fail. However, understanding how as individuals or groups such as a workforce transition though any period of change is vital to its successful implementation When exploring human reaction to change Elizabeth Kubler-Ross (Scire 2007) identified five stages people go through to process an event of significant change more commonly known as The Five Stages of Grief. Whilst Kubler-Ross related the grief cycle to experiencing tragedy and loss associated with death or terminal illness her model can be applied to any period of significant trauma such as job loss or in the case of Pacific Brands the significant reduction in its workforce. The Heart of Change...
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...• Pacific Sunwear originated its business endeavors as a surf shop located in Newport Beach, California more than three decades ago. • Since being established by Tom Moore in 1980, Pacific Sunwear has undergone several transformations within a relatively short duration. • Over the years, PacSun has emerged from a surf style to an array of skate, snow, and street apparel while still maintaining California tastes. • The retail chain specializes in casual/action-sports inspired apparel, footwear and accessories with a principal target market of adolescents and young male and female adults with ages ranging from 16 to 24. • Virtually all 645 to 700+ stores are situated in either regional malls or outlets throughout the US and Puerto Rico. California, Texas and Florida are the predominant states in which a substantial amount of Pacific Sunwear stores are operated. • Despite the number of stores, in comparison to certain department stores and the specialty retail industry, your company is currently not demonstrating similar trends. The specialty retail industry continues to witness an increase in annual sales which supersedes our your performance in the retail market. • Based upon the type of merchandise Pacific Sunwear sells, direct competition derives mainly from well-known specialty retailers. Our team of consultants has examined some competitors in the industry due to distinctive correspondence existing in products offered. • We have conducted an evaluation specifically...
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...(MKT 571) August 6, 2013 Professor: Susan Heywood In the following paper, I would like to focus on Marriott International, Inc., a leading lodging company with over 3,100 lodging properties in the United States and 66 other countries and territories (Marriott International, Inc. Corporate Headquarters, 2008). My key task is to discuss market segmentation, targeting and positioning strategies of the company with the following brands: Marriott Hotels & Resorts and Courtyard by Marriott in the same marketplace, Asia-Pacific. As the fast expansion in economy of Asia-Pacific, the hospitality industry has a bright perspective in this region. Especially in China, the hospitality industry during the past 30 years is a prime example of how the nation’s economy has also sharply developed. In recent years many big hotel chains became aware that seizing the market in Asia-Pacific is pretty important for their development. Marriott International is one of them. Since 1989, Marriott International has grown from one property in Asia-Pacific to over eighty properties. Over the past 16 years, Marriott has expanded its resort portfolio to include 15 resorts across the region. And in China since 1989, Marriott has grown from one property in Hong Kong to 32 hotels throughout the country (Marriott International, Inc. Corporate Headquarters, 2008). The hospitality industry today, customers don’t just need a place to stay and eat; people choose a hotel for more complex reasons...
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...Melissa Roberts 9610377 Global Strategy & Leadership S2 2013 Case Scenario 1 Pacific Brands The aim of the restructuring strategy of PacBrands is to refocus the business on brands and move away from manufacturing. It requires a major restructuring including cost-‐cutting; reorganizing capital management and debt financing, simplifying logistics and operations, sourcing production offshore and developing capabilities required as a brand marketer. Question 1 – 4 Marks Question 2 – 8 Marks Question 3 – 6 Marks Page 1 of 23 Melissa Roberts 9610377 Pacific Brands Global Strategy & Leadership S2 2013 Module 1: An introduction to strategy and leadership The global context of business (Drivers, challenges, benefits of globalisation, value of localisation) Page 1.28 Drivers of Globalisation • Competitive Forces -‐ The ability to effectively offshore manufacturing to reduce costs has been possible because of globalization. The pressure...
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...Pacific Brands: Rebuilding the Brand 1. Key Stakeholders (3.9) Key Stakeholder Shareholders Stakeholder’s Objectives • Increase in Revenue • Shareholder Return. Objectives Met/Not Met • Increase in earnings by 30%Met • Investors had their dividend in the first halfMet • Running into losses, lost its name- Not Met • As the company has sold off its many brands so reduction in market shareNot Met • After drastic losses there’s little relief and there is an increase in EBITDA- Met • Good strategies help the company in recovering from losses- Met • Lots of employees were CEO and Board • Prestige • Increase in Market Share • Revenue and Profit Growth • Strategic Transformation Success Government • Jobs protection • Earnings and Taxation • Major customers • Effective Products • • Innovation • • Stable Margin • • Good deals Employees • • • • Stability of employment Good Values and culture Better Paid Social Security • • removed and hired too i.e protecting the skilled and hardworking employees – Met (for skilled and hardworking employees) Earnings have been increased from the pastMet The increase in revenue shows that the products are effectiveMet Last one to shift its production to overseas – Not Met Shifting of the manufacturing unit to china help the customer in giving them suitable marginsMet The sales had been decreased Not Met Community • Environment Friendly In PB – I am confused whether it will be China production unit...
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...Pacific Brands: Rebuilding the Brand 1. Key Stakeholders (3.9) |Key Stakeholder |Stakeholder’s Objectives |Objectives Met/Not Met | |Shareholders |Increase in Revenue |Increase in earnings by 30%- Met | | | |Investors had their dividend in the first half-| | |Shareholder Return. |Met | | | | | |CEO and Board |Prestige |Running into losses, lost its name- Not Met | | | |As the company has sold off its many brands so | | | |reduction in market share- Not Met | | |Increase in Market Share |After drastic losses there’s little relief and | | | ...
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...A Tale of Three Wheels in the Bicycle Industry Pacific Cycle Chris Hornung, the founder and the first CEO of Pacific Cycle grabs a lion’s share of the U.S. bicycle markets. In 2005, around 19.8 millions of bicycle were sold in U.S. the total retail value of bikes, parts, and accessories were more than $6 billion. There are basically hundreds of bicycle manufacturers in U.S., but they are small specialized firm. Pacific Cycle is interested in high-volume business. Pacific Cycle designs, markets, and distributes a full range of bikes brands such as GT, Schwinn, Mongoose, Roadmaster, etc. Its’ powerful brand portfolio serves virtually all demographics, price categories, and product categories. Hornung pioneered the concept of sourcing bicycle from Asia for distribution in the U.S. Hornung’s first mass-market retailers are Target Corp. and Toys ‘R’ Us. Now, Pacific Cycle is the fastest growing branded consumer companies in the U.S. Hornung achieved this success by combining an aggressive acquisition of powerful brands with low-cost outsourcing, efficient supply chain management, and multichannel retail distribution. In December 2000, Pacific Cycle acquired Brunswick Corp. for $60 million, which includes Mongoose, Mongoose Prop, and Roadmaster brand. In this deal, PC does not only get the brand, but also the a very big customer: Wal-Mart (Brunswick’s biggest account), which doubled PC’s sales. A year later, PC bought the assets of Schwinn/GT Corp. out of bankruptcy for...
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...Introduction: Pacific Brands Limited is the largest supplier of everyday essential brands in Australia and New Zealand, retailing and distributing some of the biggest brands like Berlei, Hard Yakka, Bonds, Sheridan, Holeproof, Kayser, etc. The purpose of this case study is to analyse the fundamental issues relating to Pacific Brands strategy to close all seven of its Australian factories, and source its merchandise from southern Chinese factories resulting in the layoffs of 1850 Australian workers . Pacific Brands’ decision was made to save a company labouring under too much debt – about $740 million at the time – operating in a highly competitive, global market and suffering the impact of the worldwide financial crisis on the company. Australian consumers may love Australian products, but they don’t like paying for them . Pacific Brands CEO Sue Morphett stated that the rise of cheap offshore manufacturing meant that Pacific Brands could no longer afford to make clothes in Australia ... manufacturing in Australia no longer provides any competitive advantage to the company. What are the keys problems and/or issues? Offshoring for the purpose of this discussion can be defined as the relocating of one or more aspects of a firm’s business to another country’s location to lower costs. This makes Pacific Brands as a multi-national corporation (MNC) as according to when an organisation is in the multinational phase of internationalisation, the organisation’s principal concern...
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...segmentation, targeting and position of different brands in Marriott International Course: Principles of Marketing Faculty responsibility: D. Sleeman Program: PGD2 Name: YAO Feng (Emma) Words Count: 2632 Date: 02.10.2008 Statement of Authorship “I certify that the totality or assigned portion of this assessment is my own work and contains no material which may have been used for the award of any degree or diploma in any institute, college or university. Moreover, to the best of my knowledge and belief, it contains no material previously published or written by another person, except where due appropriate reference is made.” YAO Feng Table of Contents INTRODUCTION 3 Aim & Objectives 3 Limits of research 3 Methodology 3 SEGMENTATION 4 Market Overview 4 Market Segments 4 TARGETING 6 Segment Strategy 7 POSITIONING 8 Product and branding strategy 8 Pricing 14 Promotion 15 Marketing Channels 16 CONCLUSION 16 REFLECTIVE COMMENT 16 REFERENCES 18 APPENDICES 20 INTRODUCTION In the following report I would like to focus on Marriott International, Inc. (NYSE:MAR), a leading lodging company with over 3,100 lodging properties in the United States and 66 other countries and territories (Marriott International, Inc. Corporate Headquarters, 2008). My key task is to critically analyze the segmentation, targeting and positioning strategies of the company with the following brands: “Marriott Hotels & Resorts” and “Courtyard...
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...Pacific Brands Case Study Contents Introduction 1. Problem Identification 1.1 Cost Reduction 1.2 Structural Reorganisation 1.3 Ethics and Social Responsibility 2. Problem Analysis 2.1 Cost Reduction 2.2 Structural Reorganisation 2.3 Ethics and Social Responsibility 3. Recommendations 4. Bibliography Introduction Pacific Brands is an Australian based textile retail business that operates throughout Australia, New Zealand, United Kingdom and Asia. Within the following report is an exploration of the change process which Pacific Brands began implementation of in 2009. This step change was driven by a number of internal and external factors. These included falling profit and share price, increasing costs and the pressure of the worsening Global financial crisis. Added to this was the need to stay competitive in a market that has significantly shifted to cheaper imports. (TCF Review 2008, pp. 9-10) Pacific Brands restructure and the sale/discontinuation of unprofitable brands generated a focus towards core brands and the implementation of a profitable, streamlined structure that would guarantee the most cost efficient model. The disadvantage of such an aggressive restructure was the immediate media backlash and ensuing reputation damage caused by the outrage of employees, politicians and general public. 1. Problem identification 1.1 Cost reduction As in all developed markets the Textile, Clothing and Footwear industry that Pacific...
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...extensive advertising efforts in the Beijing 2008 Olympics and European Football Championship led to a 15% surge in the company's 2008 SGA expenses. With $18.6 billion in revenue in 2008, Nike was the industry leader. Since 2001, Nike has captured about 35% of the global market. It is largest in the US, with recent market shares in the region of 38%. Nike's scale advantage principally manifests itself in low advertising costs. Scale reduces advertising costs because large brands are inherently recognizable, and because, with a large distribution network, a dollar spent on advertising improves sales in many stores. In 2008, Nike spent $2.8 billion on advertising, 12.4% of revenue. During Q1 2009, Nike's advertising expenses jumped 39% because of higher marketing efforts surrounding the Olympics. With U.S. retail sales and consumption slowing in 2008, Nike has focused on its international portfolio and pursues growth opportunities in emerging markets. In 2008, Nike's revenue in its EMEA and Asia Pacific regions led the company's growth with a 19% and 26% increase in revenue, respectively. Meanwhile, U.S. sales revenue for Nike has been comparatively flat, growing only 4% in 2008, with a 1% decrease in Q2 2009. Managers for Nike are creating value for shareholders by...
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