Which company was the more profitable in 2004? Safeway has superior ROE (14.1%) and ROA (6.4%) in 2004 when compared to Kroger (-2.7% and 5.5%, respectively). 4. Both companies have EBI/Sales margins that hover around 2%. What aspect of the retail grocery industry contributes to such low margins?
Porter’s Five Forces Buyer Power In the dairy market, buyer power is estimated to be a strong force. In fact, players like Saputo can only sell to a small number of larger buyers since the main distribution channels for this industry are dominated by supermarkets which accounts for roughly 75% of the total market value. (1) Furthermore, staple foods like milk and butter are undifferentiated products, which makes it easy for buyers to switch to one of Saputo’s competitor. This is enhanced with the fact that the dairy market is highly price sensitive. Luckily, this aspect is mitigated by the fact that Saputo also offers other products such as specialty cheeses, which are more differentiated.
The launch of Canadian bacon into Mexican markets will be no different. Kudler has established that they will be a one of a kind item in Mexican markets. Currently, the standard American bacon is mass produced in Mexico. Kudler’s challenge was finding an appropriate pricing strategy to be profitable, maintain superior quality, and support local economic factors. Kudler focused on studying competition in pricing and strategy.
Colombo Soft-Serve Frozen Yogurt Case Solution General Mills acquired Colombo Frozen Yogurt to increase net sales with little additional marketing cost. Frozen yogurt is sold through independent shops and impulse locations. The GMI sales force focused on the impulse segments， and its price promotion lifted its sales volume. 1. Competitive environment for Colombo Independent shops: Colombo mainly distributed through independent shops in the early 1980’s.
The combination of low competition and market up prices, Whole Foods was able to make more profit than other traditional grocery stores. 2. How could Whole foods have a higher profit margin and yet still, overall, show a lower profit than other
Eggs have a seasonal demand and cause a change in demand. Eggs are considered more of a necessity to the consumers and do not have any real substitutes that would change the demand of the product. The only substitute is relevant to eggs are the eggs substitutes, but they cost twice as much as a dozen eggs. Therefore consumers would more likely to buy eggs than the egg substitute. Eggs have a higher consumption than beef within the consumers.
Bargain hunting is quickly becoming a new national sport as more people look to save money in the face of a recession. But some Canadians may want to check their frugal ways at the grocery-store door - or they could end up paying for it with their health. A new report released yesterday by the Heart and Stroke Foundation reveals that the price of many healthy foods, including fruits and vegetables, milk, lean ground beef and brown rice, varies widely in different communities. Although it's widely known that food prices tend to be higher in remote regions and parts of Northern Canada, where food has to be shipped long distances, the report contained some examples of high prices in urban areas and central parts of Canada. For instance, a bag
Kellogg’s new product innovation strategy not only helped it in tapping into new markets for snacks but it also helped the company in wading off its competition. Guidelines: While launching Kellogg Krave, there are certain elements that had to be kept in mind. The senior management had to realize that the company should effectively tap into the new market while keeping the market extension aligned with the overall image of the brand. This is the reason why, Krave bears a red capital ‘K’ with its
Mos Burger which is another competitor, with 25 percent of market share, is a huge threat for Burger King as well. Even though burgers are not exactly Japanese type of food, the fast food market is maturing, thus making it hard to gain profit, even for big companies like McDonalds. The fact that Japanese customer is in great supply of burgers lowers demand for them, making it harder to sell. Why have Burger King and other companies in the case decided to enter foreign markets? Why have they chosen Japan?
As of 2011, the top 10 countries consist of 58.5% of the world population (Appendix A). Expanding to larger countries should increase revenues as well as brand awareness. Other criterias and questions include: * Looking at the countries customer's demographic characteristics, including age group, gender, income, educations and interests. * Looking at the countries general economic and business conditions. * How easy is it in overcoming the countries cultural and/or language barriers * Is Krispy Kreme able to expand into a particular country and still remain profitable?