The literature states, a certain number of people need to buy into any given deal before it kicks in, or ‘tips’ in Groupon parlance; once the deal tips—for example, 200 people have purchased a $40 coupon for an $80 massage—the merchant and Groupon split the revenue roughly 50/50, and a group of customers has an unbeatable bargain (Nelson & Quick, 2013). Given that a minimum number of people need to buy into a coupon deal before it tips, buyers eagerly spread information among family and friends, which in turn increases the number of buyers (Nelson & Quick, 2013). This effect is like a snowball rolling rapidly down a steep hill, and it can benefit both Groupon and the merchants in the short-term (Nelson & Quick, 2013). 2. How would you describe the decisions identified in your response to question 1 in terms of programmed and non programmed decision making?
By having rapid timing and synchronicity, Zara spends its money on things that can help increase the responsiveness and speed of the chain. Zara can reduce inventories and forecast error by postponement of the decisions after knowing the trends. The apparel industry cycle time has averaged more than six months. For five to six weeks cycle time has been achieved. By having this speed Zara can introduce new designs weekly and every three to four weeks 75% of their merchandise is displayed, which matches the customers preferences more than competitors.
This allowed for Yum to create new sales opportunities for Pizza Hut and KFC. For Pizza Hut, Yum created a menu which carried around 120 items that contained low price items as well as fancier, more expensive items. Another thing they were able to add was extra day parts which allowed to increase revenue. For Pizza Hut, they added a tea time menu which was able to directly compete with local coffee shops during the midafternoon times when business was slow. At KFC, they added a breakfast menu and lowered the price to match what local cafes were offering.
(Wal-Mart Corporate Website) Huge turnover, large customer base and returning customers show that Wal-Mart has been able to achieve this goal in its 50 years of existence. Wal-Mart sources material from third world countries at low price. Very efficient supply chain management and bargaining power has enabled Wal-Mart to sell goods at low price. Company is also pursuing vertical integration strategy to lower cost. Answer-2) Wal-Mart Stores had turnover of $446.95 billion and net income of $15.77 billion in financial year ending
In advance of an Oscars event sometimes dubbed "the Super Bowl for Women" by media people, Unilever is giving the launch of its effort a touch of Super Bowl treatment, including a 90-second teaser ad to be released Wednesday on YouTube and a social-media command centre with support from PR shop Golin Harris with live tweets during the show. Unilever is doubling Lipton marketing spending to more than $40 million this year compared to last, said Alessandra Bellini, VP-brand development for Unilever Refreshments. The campaign backs both Lipton hot tea and iced tea, the latter marketed as part of a joint venture with PepsiCo. While Lipton has had global campaigns in the past for ready-to-drink tea, this is the first global effort behind the entire brand line-up, Ms. Bellini said. Lipton -- in both
Define the elements of the Internal Analysis utilizing SWOT as per the chapter 3 and the charts on pages 42 & 43. Be as detailed as possible. STRENGTHS * Higher Income Shoppers * Low employee turnover * High salary * Strong management * Private Brand label (Kirkland Signature) * Return Policy- hassle free * Attracts business customers | WEAKNESSES * Modify aging stores * Vendor satisfaction * Ambitious expansion plan * Lax quality control * Strong dependency on providers * Word of Mouth Advertising * Low margin * Leader-James Senegal 79 | OPPORTUNITIES * Expansion overseas and market presence * Increase online sales * Ancillary services * Private Brand label (Kirkland Signature) * Attracts business customers * Expand wholesaling-Internet Sales * Consumer-travel, optical, auto * Financial, * Insurance * Pharmacy * Recycle | THREATS * Increasing competition * Subprime crisis * Low consumer confidence * Low promotional activity * Diversification * Expand wholesaling * Customers have high mobility | Internal Factors STRENGTHS The strengths of Costco’s strategic plan include strong management, low employee turnover, high compensation, strong customer business base, strong private brand (Kirkland) and generous return policy. The company policy is committed to promoting from within their own ranks, filling as many as 86% of higher-level openings in their stores. This allows them to be competitive by staffing their stores with knowledgeable employees which increases customer satisfaction as well as decreasing staff turnover.
• Maintaining workforce expenses below 18% of revenue. • Maintaining sales amid half a million dollars each year (Riebesell, 2001). “The Assemblage” will be different from other restaurants in the area in not just its location but also the services it offers to its customers. The owners plan to propose a special and unique mixture of quality eating experience at affordable costs together with a healthy entertainment and leisure atmosphere. This way the customers will have a pleasant eating experience as well as view their favorite sports games (Riebesell, 2001).
The fast food industry was extremely seasonal with peak sales occurring in the summer months. The parent company expects that each of their restaurants achieve at least $50,000 in annual profits. However, more importantly, they look at each restaurant’s cash of our financial obligations. Of course, they want the cash flow to be in excess of breakeven; otherwise, they have to subsidize that restaurant until it is able to positively contribute. In the case of Windham, this continuous subsidizing has forced them to maximize our line of credit from the bank, straining our relationship with them The HHC set out strict guidelines requiring all of its franchises to have a standard restaurant design, menu, suppliers, uniforms and signage.
Rob Goodman- the Louis Rich Category Manager, advised to focus on brand awareness, and the introduction of the recently developed products, by increasing the advertising budget by 22 million. Jane Morley- the Director of Finance and planning counseled McGraw to go all out and buy three small scale, but successful, brands-Chicken Rite, Turkey Time and Crabbies Inc. Jim Longstreet proposes two innovations- Zappetites and Lunchables, with the focus being on ready to eat, microwavable products to “boost convenience.” Lastly, Eric Stanger roots for a 10 cent per product price cut on core Oscar Mayer branded offerings and an increase in the advertisement and promotion budget by 25 million. Now Mc Graw has to choose an idea out of all the terrific plan of action put forth by his team of managers. CONCEPTS Targeted Consumers – The Target Audience for Oscar Mayer is primarily the working Mothers and children. Although the products are mostly consumed by kids, the
Analysis: Cause and Effect Over 50% of quick service restaurants (QSR) traffic today is via the drive-thru lanes ("Ways to improve," 2012). Drive-thru customers all have the same expectations: speed, accuracy, quality, and service. Why does McDonald’s utilize the dual drive-thru platform? Having the dual drive-thrus speeds up service and allows for more orders to be taken. If a customer arrives at the drive-thru and sees a long line, they are more likely to drive away.