ALTERNATIVE BEVERAGE CASE STUDY Charles Taylor University of Maryland University College Case 2 | | Due | 01-Apr-2013 | 11:59PM | | 3% | | Industry overview The Alternative Beverage industry, once a niche market, now comprises a major segment of the entire beverage industry. Projected to be well over a $50 billion market by the year 2014, alternative beverages are arguably the fastest growing segment of the beverage industry with the ability to sustain consistent growth in mature markets. This constantly emerging market consists of energy drinks, sports drinks, vitamin drinks, juices, teas, and waters packed with exotic herbs and vitamins. The Pepsi Co., markets a competitive line of alternative beverages which include brands such as Gatorade, Propel, SoBe Lifewater, and Amp Energy drinks. These beverages, which generally command higher price points than their carbonated contemporaries, now account for more than half of all industry growth.
Dr. Pepper Snapple Group Inc. Case Report The Dr. Pepper Snapple Group Inc. executives want brand manager Andrew Barker to look into the possibility of their company entering the energy beverage market. Dr. Pepper Snapple previously has distributed Monster Energy for Hansen Natural Corporation. This will end in November of 2008. Decision Problem Mr. Barker understands there would be many decisions that needed to be made in order for his company to enter a new market. He must first asses if there is a profitable opportunity to launch a new brand in the current energy beverage market.
Question 1: How do Hyundai and Kia use exchange rates in their daily activities? How did the weak dollar affect the profits of the two companies between 2005 and 2007? First of all, we have to define the meaning of exchange rate. An exchange rate is simply the rate at which one currency is converted into another. In the opening case, Hyundai and its affiliate Kia are the fast-growing carmakers in Korea because they have benefited from export-led growth.
And how had it financed the growth and how its capital structure evolved? Assumptions For the year 2001 a recession occurred. This occurrence is considered when reviewing the financial numbers and statistics during this year. Qualitative Analysis The first step in analyzing Costco Wholesale Corporation is analyzing the relative qualitative data. Based on the data provided within the case the points below summarize how Costco is performing: * Industry: Wholesale clubs grew 12-15% in the 1990s and Costco is currently the largest wholesale club in the industry.
In 2009, revenues from Redbox's operations accounted for 67.6 percent of Coinstar’s. Being such a large company in the kiosk business, Coinstar knew how to implement strategies that would work to strategically take over this market successfully (Wingfield). II. Redbox’s Business Strategy: Successes: Redbox’s successes are due to the convenience and low price that they provide to customers. Surveys indicate that 80% of Redbox customers would refer them to a friend, which speaks astronomically about the services provided.
TeamSystem, with its high market share (14% a close second in the industry) is in position to grow at an even faster rate than the industry with EBIT growing at a 31.6% annualized rate since 1996. Coupled with the fact that TeamSystem’s customers renew their contracts at a 95% rate per year and this company seems like an attractive investment opportunity. After completing a DCF analysis of the company as well as factoring in non-price considerations I believe that TeamSystem would be a great investment for your company. Issues Aside from the actual valuation of the company, there are some non-price considerations to take into account for the overall investment. The three major issues being: transitioning a family run company into a professional organization, the pace of technological change, and the impending inspection by Italian tax authorities.
According to the Costco Wholesale Corporation Company Profile (Datamonitor, 2009), 78.5% of total revenue comes from the United States, the company’s largest geographical market, it is an increase of 10.4% from 2007. Canada generates 14.5%, and the remaining 7% are from other branches such as Taiwan, Japan, South Korea, U.K. and Mexico. Compared with 2007 and 2008, the Canadian and other international markets’ revenue increased by 20.7% and 21.9% respectively. Based on the Onesource company report (2008), Costco’s revenues can be separated as follows: 22% from sundries, 19% from hardlines such as major appliances and electronics, 20% from food, 10% from softlines such as apparel and
To address these challenges P&G respond to competitive factors, including pricing, promotion and innovations. So far, the company managed to be number one in the industry and has all the potential to remain on top in the coming years. Summary of the 2010 results: * Net sales increased 3% to $78.9 billion: * Organic sales increased 3%; * Unite volume increased 4%. * Net earnings decreased 5% to $ 12.7 billion. * Diluted earnings per share declined 4% to 4.11.
Analysis of the Problem 1. Aggressive Growth: Once Krispy Kreme went public, there was enormous pressure for public companies to grow and sustain growth quarter after quarter. KKD was growing 20% year and went from 144 stores to 427 stores in 45 states and four foreign countries, from 2000-2004. Krispy Kreme focused on growing revenues and profits at the parent level, while it outlets struggled. This was evident in their business model/ revenue breakdown.
Choosing this will allow us to target both the 80% of the market that prefer regular and the 20% that prefer sugar-free. Flavors: One flavor because there are several energy drink beverages already on the market. We believe it is better to have one strong initial offering which can lead to the expansion of flavors after the initial version obtains ground in the market. Channel: We want to launch our brand in convenience stores, as this has the highest share of market sales with 52.5%* of total market coverage. We will be able to reach the largest amount of consumers through them, while remaining consistent with the company objective to be in high profit areas.