Weaknesses Financial constraint with a limited budget for a marketing strategy for the launch. The consumers for the existing Kraft brand coffee are typically over the age of 45 whereas the target market for the SSP suggests an age range between 25 and 54 years. Single Serve Coffee Pod machine that is currently in the market is not compatible with Kraft’s coffee pods. Opportunities There is a market for the product, with the two thirds of Canadians that prepare their coffee at home. Potential to lower distribution costs with the use of a joint direct – to – store delivery program with another of Kraft products.
While PepsiCo have diversified into healthier products and snack food business, Coca Cola have fell in marketing investments (advertising and marketing research) to maintain short term profit. As PepsiCo initiated the acquisition of Tropicana for $3.3Billion in 1998 (New York Times,1998)3, it have set itself up as the largest producer of branded juices for the health conscious in the USA. Subsequent acquisitions of Quaker Oats, Gatorade, Lay’s and Aquafina have also contributed positioned PepsiCo as the world’s 4th largest Food & Beverage (F&B) company with sales of US$22,000Million. The reluctance to diversify was evident when Coca-Cola decided against acquiring South Beach Beverage Company after negotiating for two years while Pepsi made an offer and in weeks acquired the SoBe brand New Age juice company, which gave Pepsi access to a market completely bypassed by soda
Some 13.5% of all purchases were done over the internet in 2010, according to BCG, and this is projected to rise to 23% by 2016. Chocolate v sex The researchers said that the overall UK web economy is particularly fast-growing. They predict it will continue to expand at a rate of 11% per year for the next four years, reaching a total value of £221bn by 2016. That compares with projected growth rates of 5.4% in the US and 6.9% in China. This may be particularly good news for small and medium-sized businesses that focus on the sector.
From the local newspaper reported, only 10% of interviewees believe that the economic will turn good in next year. Most of people tend to reduce expense on entertainment, luxury goods and foods. They change their habits because of the uncertain future. For example, office workers have their lunch at fast food restaurant instead of Chinese restaurant, in order to save money. Compare a cup of coffee from Starbucks with a value meal from McDonald’s, both prices around $30; Starbucks’ coffee will be treated as “luxury good”.
In the 1990s global sales of coffee leapt from $30 bn to $50 bn. (Although, we should note, the money received by growers dropped from $12 bn to $8 bn; see www.oxfam.org.uk.) Coffee contains the stimulant caffeine, which has neurophysiological and cognitive effects, but buying and drinking a cup of coffee happens within a wider social context. The resurgence of coffee shop culture might have major civic, social and interpersonal consequences far beyond just meaning that I can get a nice cup of Java pretty much anywhere I want. DAVE ROBERTS TOM STAFFORD, the winner in the postgraduate category, investigates the coffee break.
The current global jeans market is currently valued at £55bn (rising to £60bn); taking into account the historic price deflation, the cumulative growth at 1.25% per year is pretty good. Volume sales continue to grow alongside value, as the global volume sales reached 2.9 billion units in 2010. Around 40% of this was sold in Asia-pacific more than twice as much as in North America or Western Europe, the next two largest regions. However, 2010 saw shortages in the world cotton market cause by both low production levels as well as the weather conditions,
According to Bloomberg Business Week, Coca-Cola remains the best globally recognized brand across all industries for years, while Pepsi’s brand ranked number 25 in the year 2008. Thus, Coca-Cola is able to charge premiums for its syrup concentrates due to its larger market shares and better brand name recognition. In order to compete against Coca-Cola and increase revenue, Pepsi has diversified its businesses as I stated above into other markets such as snacks, chips, and breakfast foods, with its core business focusing on soft drinks. Undoubtedly, the company’s strongest and most identifiable brand is indeed Pepsi but it has a certain advantage over Coca-Cola since it is more diversified. On April 9, 2009, Coca-Cola Company reported cash and cash equivalent to be $6,816,000,000 and on December 26, 2009, Pepsi reported cash and cash equivalent to be $3,943,000,000.
However, with the solid reputation that Starbucks has built gives the company a competitive advantage over their competitors when entering new market territories. Risk Management and the Business Model used by Starbucks Home grown in the United States, Starbucks is delivering high performance not only to their customer but also to the company as a whole. Last year, Starbucks had a remarkable stock price increase in which they contribute to many factors. “As of the end of calendar 2011, Starbucks stock price had increased 43 percent from a year earlier” (GlobalData 2012). Since the company attributes their success due to customer experiences/rapport, employee morale and innovative products, Starbucks continues to replicate this business model to maintain a competitive edge.
Reed’s executives attributed decline in sales in last five years to encroachments by superstores & warehouses. Because of Reed’s emphasis on the quality & service, customers perceive its prices to be high & same was endorsed by a study. Because of higher prices & its full service offerings, Reed’s average value per transaction was higher than the national supermarket average. There are many competitors in the Columbus market which had different positioning as compare to Reed supermarket. The details of major competitors are as follows, a) Delfina was considered high-end & had 9.58% market share b) Galaxy Chain had medium-end products, was poorly located & marginally profitable.
A-B INBEV Case Study A-B INBEV Case Study Beer Industry Beer is the oldest alcoholic beverage in the world with production dating back to 9500 B.C. The beer industry is classified as a mature market since demand is relatively stable. Beer is the fourth largest beverage market in the global beverage industry behind soft drinks, coffee and tea, and dairy drinks. The beer market was considered recession proof but sales of beer in France and the United Kingdom declined drastically in 2008-2009. Premium brands of beer sales overall declined as consumers switched to cheaper substitutes during the last recession.