(Crane pg. 243) By conducting an analysis on segmentation, targeting and positioning the company was able to reposition the use and identify new uses and markets for baking soda through an effective market-driven growth strategy. Through the segmentation process Arm & Hammer segmented customers based on their needs and desired benefits (e.g. what is purchased, why is it purchased and by who?). It was important for the company to select the correct variables when determining segments and also gain insight on why home usage of baking soda is declining (e.g.
By 2002, Gap Inc. had expanded to over 2000 stores and annual revenues of $14 billion. Drexler helped Gap acquire Banana Republic in 1983, launched the first Gapkids in 1986 and Old Navy in 1994. The company went international in 1989. Paul Pressler replaced Drexler in 2002, when sales declined in the double digits in every quarter for two years. Pressler also made huge efforts to expand Gap Inc.
Executive Summary Starting with a little seed money from the owners, Sift Bakery was founded with the goal of providing a guilt free dessert that delivers an OMG factor to all their customers through superior customer service and trendy décor. With already acquired knowledge in the specialty baking market for California and increasing pressure from competition it is suggested that Sift implement a steady expansion strategy combining retail and baking stores to increase overall sales roughly 35% year over year and maintaining consistent operating expenses. Sift has remained strong in certain demographics to hold their position as a specialty bakery however, with the spawn of new social media and marketing platforms available, Sift is shifting its efforts to accommodate the increase in new marketing tactics and branding strategy. Considering the high level of competition in the Bay Area market, Sift has considered a few options to increase their footprint. As suggested, it is believed that implementing a targeted and focused expansion based on the current business model will accomplish the overall goal while managing the growth based on financial indicators and health of the business.
Each team member will include one alternative and recommend a single strategy that Kudler Fine Foods may implement. The alternatives discussed will be (1) expansion by horizontal integration (2) expansion by adopting generic competitive strategies (3) expansion by product development (4) expansion by recruiting new management team, and (5) expansion by identifying a specific plan for new location. Expansion by Horizontal Integration To maintain and increase its competitive edge, an alternative strategy KFF will consider is to realize growth and increase productivity through horizontal integration. Horizontal integration will increase KFF’s economies of scale and scope, marketing power and reduce the cost of international trade when this opportunity arises (University of Phoenix, 2007). To increase its scale and scope, KFF will expand geographicaly first through acquiring similar stores so as to sell more of the same product.
How to Defeat Wal-Mart In a study conducted by Dartmouth Universities School of Business, 90 businesses over a two-year span all had drastic changes in sales when a new Wal-Mart retail store entered their respective communities. During this study "supermarkets suffered sales declines of 17%, while mass merchandisers saw sales fall 40%, and drug stores saw a 6% decline in sales.” Although the study didn’t go into how the businesses fared after the two years and whether they’re closing their doors, or trying to stave off the retail giant with advanced marketing tactics. Professor of Marketing at Dartmouth Kusum Ailawadi states that when competing against Wal-Mart "it's no use to blindly cut prices,” and she is correct however many more techniques
Fishman introduced the What’s Important Now Strategy (“WIN Strategy”). It focuses on three main elements of the Company’s business: merchandising, real estate and cost structure. From a merchandising perspective, the goal of the Company is to continue to provide extreme value, improve quality, and expand the presence of recognizable brand-name merchandise in stores. From real estate perspective, the Company moderate store growth by opening new stores and closing other stores and also remodels existing stores. From cost structure perspective, the goal of the Company is to generate expense leverage (lower expenses as a present of net sales).
JC Penney was named on this list for its disappointing stock price relative to the retail industry. Its stock price was down almost 45% from January 1 1995 to December 31 1999, while the S&P Retail Department Stores Index increased by almost 43%. Due to declining sales and a deteriorating customer base, CalPERS believes the market has lost confidence in Penney's management.
Each team member will include one alternative and recommend a single strategy that Kudler Fine Foods may implement. The alternatives discussed will be (1) expansion by horizontal integration (2) expansion by adopting generic competitive strategies (3) expansion by product development (4) expansion by recruiting new management team, and (5) expansion by identifying a specific plan for new location. Expansion by Horizontal Integration To maintain and increase its competitive edge, an alternative strategy KFF will consider is to realize growth and increase productivity through horizontal integration. Horizontal integration will increase KFF’s economies of scale and scope, marketing power and reduce the cost of international trade when this opportunity arises (University of Phoenix, 2007). To increase its scale and scope, KFF will expand geographicaly first through acquiring similar stores so as to sell more of the same product.
1. How would you characterize the snack chip category and Frito-Lays competitive position in the category? * The United States snack food industry recorded retail sales of $37 billion in 1990, a 5 percent increase from the year before. A large source of growth results from increased per capita consumption. Consumers are buying more snack chips per person, an increase of 2 pounds over four years.
This downward spiral continued during the recession of 2008 thru 2011 with many stores old, disorganized and dated which left a feeling of a dated brand. Ron Johnson, CEO of J.C. Penney knew a change was necessary after the second quarter earnings were reported to Wall Street in August 2012 after several years of changes within J.C. Penny to survive in the retail department store market. It was clear that the performance of the company did not meet the expectations of the stockholders, therefore demanding immediate action and change to the existing business strategy. This was very disappointing as a recent change to the business model was done six months earlier by Johnson and his management team. The major “repositioning” was a change in the existing price strategy of high-low pricing to a new “Fair and Square” pricing commonly used by department stores.