There are rapid incremental changes in the non-disposable razor market. There is 5% growth from 2007 – 2009. 22 new SKU’s introduced from 2008-2009. The new SKU’s are trending to be higher priced and placed in the super premium segment. The product advances were based on technical performance rather than visual modifications.
The market is growing at the rate of 5% approximately from 2007-10. Every player in this market is planning to increase the advertising media expenditure which translates to say that the market is being tapped to its full potential. Also, distribution outlets are responding to the increasing demand by increasing the shelf space. To cater to this increasing demand, 22 new stock keeping units were introduced between 2008 and 2009. Initially, the distribution of non-disposable razors was limited to traditional food and drug stores.
Notwithstanding increasing dividends and a moderately stable share price, the home improvement retail industry remains to struggle due to the fragmentary world wide economic complications. Throughout 2009 Home Depot recorded expenses as much higher as well as the drop in sales. While Home Depot the company is very strong, the drop in sales and net earnings brought fourth some restraints until the economy shows signs of improvement. With this in mind The Home Depot, Inc. initiated strategies in the fiscal year 2008, to help minimize losses while maintaining a strong customer base. Which in turn may have the company to increase their credit programs for consumers with the intention to increase sales.
In the highly competitive, but mature, razor and blade market, Gillette holds a commanding worldwide market share. The peak of its innovation occurred in 2006 with the introduction of the Fusion 5-bladed razor. Today, innovation in razors and blades is thwarted by a lack of new technology and increasing consumer reluctance to pay for the ‘‘latest and greatest’’ in shaving technology. Gillette must decide how to put the razor wars behind them and maintain or increase its share of the global razor market. Themes: Product leadership, product innovation, pricing strategy, integrated marketing communication, segmentation, sports marketing, global marketing, SWOT analysis, strategic focus Since its inception in 1901, Gillette has always prided itself on providing the best shaving care products for men and women.
The ASOS annual reports enable us to find out if they have reaching this objective. It shows us that ASOS has increased its sales revenue from £339,691 in March 2011 to £494,957in March 2012. This tells us that the sales revenue of ASOS has increased over the past year. The website also enables them to achieve their objective of sales revenue because they only sell online which means that the website is theirs only means of increasing sales revenue. However, this may also go against them because without stores there sales will be lower than they could be if they did own shops.
1. Situational Analysis: Company Overview: Paramount, a global consumer products company, including Health, Cleaning, Beauty, and Grooming divisions, had its worldwide sales $13 billion and gross profits $7 billion in 2009. Paramount has been producing nondisposable razors since 1962 and become a leading brand. There are two lines of Paramount nondisposable razor market: Paramount Pro and Paramount Avail, which generated revenue of $170 million, $92 million in gross profit, and $26 million in operating profit during 2009 in the U.S. Paramount Pro was positioned in a moderate segment, and Paramount Avail was considered as a value segment. The U.S. Razor Market Overview: The
Financial ratios, especially when listed for multiple years in a row, can really expand what you are seeing on the financial statements with just a glance. The asset turnover ratio was decreasing towards 1 from 2000-04. As Krispy Kreme expanded assets were likely increasing. The fact that the ratio pushed from 2.1 to 1.01 in just four years shows those sales were not increasing proportionately with all the growth the company was experiencing. Exhibit 7: By a raising current ratio, we can see that Krispy Kreme is much more able to pay debt within the next year.
Clean Edge competes in the non-disposable razor and refill cartridge category. The non-disposable razor market is in a rapid growth stage (approximately 5% per year from 2007 to 2010), while the refill cartridges market is growing less (approximately 2% growth per year from 2007 to 2010), the key to the growth in this market can be attributed
Due to the fact that Asian and other foreign textile manufacturers have been exported aggressively and consumer preferences are requiring higher-quality products with minimum defects, like other firms, Aurora tends to produce small amount of yarns produced with minimal period and provide to customized markets. Consequently, Aurora had decreased significantly its costs by reducing $3.9 million of SG&A expenses since 2000 and it was one reason of increasing operating profit and net earnings in 2002. Unfortunately, Aurora’s returned amount from retailers had been increased and the proportion of sales return of Aurora’s one plant named the Hunter reached 1.5% in 2002; thus, the firm’s income has not risen well. Figure 1 illustrates Aurora’s financial ratios by calculating given financial information through Exhibits 1, 2, and 6. The first, the company’s liquidity ratios-current ratio and quick ratio-had been increased smoothly for these four years.
Although Permaclean has several competitors, the total sales of each are small in comparison with those of Permaclean, mainly because none offers such a complete product range. In 2006 the price of one of Permaclean’s major products, Permashine, was raised from 75p per bottle to 99p when the product was repackaged in a newly designed bottle; however, the contents were identical to the previous pack, both in formulation and quantity. During the following two years sales fell by 27%. At 75p per bottle Permashine had been competitively priced but when its price was increased manufacturers of similar products had not followed. In the period from 2004 to 2007 the price of competing products had been raised by only 5p.