Customers who are loyal to a name-brand company are more likely to try the new product, as opposed to someone who is not loyal. For example, a popular burger place could offer a new smoothie drink at a premium price. Many loyal customers will purchase the new drink because they are pleased with the products they already buy from the company. Loyal customers also draw new customers for the company through word of mouth. Market Share A customer with a strong brand has a high market share because of its reputation, and this makes it difficult for new entrants to enter the marketplace.
In the wake of the second world war consumers’ preferences had changed significantly. Having tasted the benefits of self-service, and more confident thanks to new government standards, consumers were ready to try cheaper, self-service retailers. Wal Mart developed a cost leadership strategy, by cutting expenses at all levels, unique for the retailing industry. Wal-Mart has lower operating expenses than the industry average. The primary cost advantage is Wal-Mart’s superior distribution capability (location of stores, inside-out growth patterns, cross-docking, superior information management).
By refining the market Pure Blonde can further its market scope to target more customers. It also keeps the product to seem fresh and new, which is a title several brands would like. However there are advantages and disadvantages to this refining especially in the sense of focusing on Pure Blonde’s low-carbohydrates aspects instead of its premium qualities. The advantage of redefining its market as low-carbohydrate is that it taps into the strong consumer focus on diet stable alcoholic beverages. Of the 3 distinct target markets each had a focus on body image and how low carbohydrate intake is a strong seller point to match this attribute of the three target markets.
Case Study Analysis Desert Palms Hotel and Casino has a great potential in growing and expanding. Having Robert Hoffman as its general manager gives the company edge over other competitors due to his management abilities and skills that he gained through years of hard work. The plan of establishing a water park can increase revenues but it can also create cost in terms of investment. Capital and cost should be taken into consideration when making decisions because these two factors can affect the overall profit of the company in the long run. The lure of gambling to young people should also be taken into consideration since the water park will most likely cater families with children (Pearce and Robinson 2008).
This paper gives a SWOT analysis on MMBC and discusses why it should expand its product line. Strength MMBC’s is differentiated from its competitors due to its brand equity which is based on its distinctive taste and reputable quality. This helped the company to create an “aura of authenticity” and a “culture” carried from generation to generation amongst its dedicated customers. In addition to this brand distinctiveness, MMBC’s access to the U.S beer market (largest in the world) gives it a competitive advantage since it shields it from the harshness of shipping costs, weak distribution networks, inability to control product freshness and margin reduction due to weakening of the U.S dollar unlike its import beer competitors. The fact that it was compared to leading names like Chevrolet and John Deere in other industries also gave an ascribed status in the region and as such an edge over its competitors.
Although that sounds corny it is nice to know that they think past the concept or making money. PepsiCo’s mission is “to be the world's premier consumer products company focused on convenient foods and beverages.” (http://www.pepsico.com). Although in PepsiCo’s vision statement they mention something about improving the world, they prove that they are all business in their mission statement. Coca-Cola demonstrates that making the world a better place is part of their mission in their mission statement. The Coca-Cola Company offers a wide variety of drinks like: Sprite, Fanta, Dr. Pepper, Minute-Maid, and PowerAde just to name a few.
These changes can raise the individual’s self esteem and confidence. Therefore the learning can generate far-reaching changes in both the individual and the environment (Beardwell I et al 2004). This initiative gave HR the edge of marketing itself to potential staff joining the Bank and thus benefiting the Trust long term strategy as it showed that we are an organisation that would invest in our staff and are committed to the ongoing developments of our workforce. Provide a Model
Well-known companies have already proven that they can differentiate their brands and reputations, as well as their products and services, if they take responsibility for the well-being of the societies and environments in which they operate. These companies are practicing social responsibility in a manner that generates significant returns to their businesses. Social responsibility makes a company more competitive and reduces the risk of sudden damage to the company’s reputation and sales (O.C. Ferrell, 2012). New Belgium Brewing saw social responsibility as part of a continuing process of building value.
One reason for Jamba Juices success is the fact that they keenly observe their value discipline of operational efficiency and to maintain said operational efficiency with as low a cost as possible. Jamba Juice is known for its low cost juices and snacks in their industry and has changed the way consumers viewed retail fast juices. This discipline has made Jamba Juice the preferred choice of consumers in the retail juice market. Jamba Juice from inception decided on the type of product to offer the consumer market. They needed to offer the product at the right price and with some variety that would stimulate the consumers mind.
Hence, there is no real threat to see a new comer eroding the whole market profits by heating up internal rivalry. • Performance in the soft drink industry is highly related to brand reputation and consumers highly value it and are mostly brand loyal. Entrants should heavily invest in advertising and merchandising to establish a strong brand awareness. • Network externalities: Pepsi and Coke have a large installed base: they handle both concentrate production and bottling through their own