The Chief Executive of parent company ‘Pablo Isla’ wants Zara to be the fastest globally expanding brand the fashion world have ever seen and be the leader in fashion industry with affordable prices. Their business model is fast turnover rate and saavy information systems. The Company targets fashion conscious young adults,who are often willing to pay a high price. The company is twofold plan to grow in Europe and Asia by 2013 which is going to reduce the Spain sales to 20% from 31.8% in 2010, Europe excluding Spain going to give 50% to the total sales, Asia 20% and America 10% respectively. Problem: How can Inditex make itself the leader into the fashion industry ?
The average CPM will drop by 10% when compared to the current 2006 CPM ($2.00) Not targeting a specific market group could mean a loss in market opportunities due to specific aggressive competition from the other networks. **Considering 2007’s Base as a non-changing situation on TFC’s current strategy. Scenario 2 Target Group: Fashionistas Expected Ratings: 0.8 Potential CPM: $3.50 Average Viewers: 880,000 Additional expenses: $ 15 M PROS The profit margin will increase to 37% compared to the Base in year 2007** (19%) if this scenario is implemented. Advertisement may become more efficient; therefore CPM could increase to $3.50. (From $2.00) The targeted segment specifically represents better CPM rates than other groups, compensating for the generalized audience loss.
Zara’s growing company has a strategy that’s highly responsive to prices that are affordable and the changing trends. New garments by the company can be designed, produced, and delivered then displayed in stores throughout the world in a mere 15 days. Being that Zara offer different designs very quick with unlimited quantities and collects 85% on retail clothing at full price when others averages 60% to 70%. By doing this their margins are higher on sale than their competitors. By having rapid timing and synchronicity, Zara spends its money on things that can help increase the responsiveness and speed of the chain.
TFC soon observed that other channels like CNN and Lifetime started telecasting programs related to fashion category which was becoming more popular than programs at TFC. Therefore TFC was facing competition in terms of ad revenue as their market was getting shared. Goal and goal defense In order to maintain its market leader position, TFC needs to maintain as well increase its viewership. The company needs to work on its current content such that the viewership of the channel increases by atleast 20% over the next year, indirectly contributing to a higher CPM and thus giving higher profits and a tunnel for growth. The channel must target on specific demographics for the fee that it can charge for advertising.
This is the potential usage in 1995. In order to project the numbers forward to 2000 (the date of product release), we must estimate population growth. The elderly population (65 and older), which currently receives 40% of all acute blood loss transfusions, is expected to double by 2030. Assuming linear growth, we can expect this age group to grow 14% by 2000. Similarly, the remaining adult population (under 65), which currently receives 60% of all acute blood loss transfusions, is expected to grow 5.9% by 2030 ((6 – 5.67) / 5.67 = 5.9%).
Price: Victoria’s Secret lingerie price range is $9.50- $58, and for fragrances and cosmetics it is $10 - $45. Since the economic downturn and declining sales back in 2009, Victoria’s Secret started to focus on lowering the price of certain merchandise “The company will introduce more budget-conscious styles this fall. Victoria's Secret will offer a new "everyday" collection in September, with bras for $29.50. The Pink division, which targets a younger consumer, will introduce the Wear Everywhere bra with a promotion of two for $32 next month as well” (Holmes). Since Victoria’s Secret took into account to lower their prices and to increase promotions, sales have soared.
Running head: Dollar General 1 Dollar General Columbia College RUNNING HEAD: Dollar General 2 Dollar General Dollar General is the leader when it comes to discount dollar stores with an annual profit of more than $12.73 billion a year. The major competition in the dollar discount stores for Dollar General in order are Family Dollar and the Dollar Tree. Another key player in discount stores is Walmart, although not a dollar discount store Walmart dominates all markets with $419.24 billion in revenue. 2011 brought on a year of expansion for Dollar General with plans to open up 650 new stores and remodel another 550 creating 6.000 new jobs in additional employees. Dollar General in owned by Koldberg Kravis Roberts & Co. L.P (KKR) who own more than 79% of all shares in Dollar General.
For the full-year 2010, Timberland reported revenue of $1.4bn, an increase of 11.2% over the prior year and up 11.7% on a constant dollar basis. Moreover, Timberland can reach their global growth potential, take big brands and make them bigger while maintaining each brand's unique rugged outdoor positioning. It will perfectly complement the premium, technical positioning of The North Face brand. Lastly, VF provides Timberland a major opportunity of sales in China for expanding. Timberland is expected to begin adding to VF’s earnings by 45 cents a share this year and 90 cents next year, excluding
Haağen-Dazs Ice-cream——the Making of a Global Brand In 1989, Grand Met decided to launch Haagen-Dazs in Europe with the objective of building the biggest ice-cream brand in the world. Early sales increases in spite of a modest market budget were encouraging. In 1990, sales were $10million. And by September 1991, Haagen-Dazs’s sales were reported to have reached $30 million nearly all in Britain, France and Germany. By1992, its sales were reported to have more than tripled, to nearly $100 million, making Haagen–Dazs the market leader of premium ice-cream in Europe.
Coach's strategy to compete in the handbag and leather accessory industry is to differentiate itself from others in the industry, they want to be able to match key luxury rivals in quality and styling while beating them on the price by 50 percent or more, yielding a competitive advantage in attracting not only middle-income consumers desiring a taste of luxury, but also affluent and wealthy consumers with the means to spend considerably more on a handbag. Coach is able to differentiate itself by introducing new handbags every month with the highest quality and latest fashion trends which is done through market research. The key here is to get the consumer into the store as often as possible. All this adds up to increased store traffic, which all businesses are striving for, this is in large part due to the new style of hand bags, which turns into more sales. Instead of the typical industry members who offer high quality leather products as well, but charge a higher price, Coach looks to create “accessible luxury” in that it wants to create a high quality product at an affordable price in its factory stores while still catering to higher end consumers with its full-price stores.