Cash flow Growth: 8%. Dividend Yield: 2.90%. Dividend Growth: 9% (Alden, 2011). Coca-Cola has additionally grown offering 14 brands to the company making a profit of $1 billion or more in annual sales, the company sold $25.5 billion unit case and had revenue of $35.119 billion in 2010 (Alden, 2011). Coca-Cola has grown its’ revenue rapidly over 5 years, this brought about an important highlight for the company in between 5 years, so the company earned about 8.5% in annual revenue growth.
Dr Pepper Snapple Group, Inc 1) How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007? The characteristic of the energy beverage category 2007 is that market was growing slow. Today market is also small and dominant by Red Bull because Red Bull was one of the first energy drinks. Being one of the first in market was huge advantage for Red Bull over competitors. Moreover, in the late 2007 the market was still growing up with variety kinds of energy beverage products.
Midterm Case Study: Mountain Man Brewing Company 1.) Perform a SWOT analysis for MMBC. What is MMBC’s competitive advantage and is it sustainable? Strengths: -“Grass Roots Marketing”-“Best Beer in Virginia” - “Best Beer in Indiana”-Reputation- Blue collar market-East Central Region-Americas Championship lager-Brand Awareness in region compared to that of John Deer and Chevrolet-Quality- Brand loyalty (rate at 53%)-Small sales force to proselytize brand- Brand equity-Off premise locations Weaknesses: - product expansion or variety - declining sales in target market- broadcasting advertisement- female and younger beer drinker segments- Finances- market share. Opportunities: -Expand into different regions blue collard segment- Expand into new market segments in East Region- New products- Female- “First Time Drinkers” Threats: -Aging core- customer segment- Major Domestic producers- light beer- Second tier domestic producers- Wine and spirited drinks companies- federal excise tax rate, increase in national health concern MMBC’s competitive advantage is the companies unique brand equity.
1. Why was it important for Coke to reposition the brand away from being a "diet" brand and towards a mainstream "aspirational" perception? Pepsi Max, Coke Zero’s biggest competitor, was heavily discounted and as a result Coke Zero was up to 58% more expensive. Considering that 75% of cola is sold on price promotions, Coke Zero needed something to justify the price premium to be able to successfully compete. Coke Zero’s communication strategy was taste-led in a category which was already suffering from the stigma of perceived bad taste.
From 1999 to 2010, Frog’s Leap recognized ample growth due in large part to the purchase of additional vineyards which resulted in an increase of wine case production of 59,000 to 62,000 cases. Frog’s Leap enjoys a large portfolio of customers, particularly resellers. 80 percent of 2010 net sales in the U.S. come from resellers. Exports, mainly in Japan, result in about 7 to 8 percent of company net sales. The remaining sales derive from consumers visiting Frog’s Leap’s winery (Gilinsky, 150).
In 2011, bars/cafes grew by 4% in terms of current value to reach sales of 4.7 billion dollars of which 15% is revenue from smoothies sold in Canada bars. The smoothie bars have shown an increasing trend in the recent past, and this explains a corresponding growth in their market. There is also a fierce competition in the organic food market. In 2011, around 174 new vegetable /fruit and nectar products entered the US market. It was a threat to Bolthouse Farm despite the fact that the company produces quality beverages.
Week 4 Description of Industry The bath and shower soap industry in 2013 showed current value growth of 10 percent to $7 Billion dollar industry. Brazil ranks third with Japan and US leading in the market for beauty and personal care product consumption in the world. According to GCI Magazine in December 2012, Brazil became the leading consumer of bath and body care products passing the US for the first time. While bar soap growth is on the decline in the United States, it is still experiencing grown in Brazil. The industry is considered to be the bath and shower, which is a consumer market segment of the personal care and cosmetics industry.
What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants? Competition is strong in the Alternative beverage industry with all beverage company’s coming out with their own drinks to increase sales volume because of the decreasing sales volume of the soft drink industry. Competition among rivals is the strongest force with the market slowing in growth and the amount of completion in the market companies where offering drinks at cheaper prices. Monster matched Red Bull on price but offered twice the amount of volume in their drinks for example. Suppliers of aluminum cans have a weak competitive force because there are so many of them and they have to win contracts with the energy drink companies.
It is very low compared to the corresponding figures in US (600+ bottles per annum). But being one of the fastest growing markets and by the sheer volumes, India is a promising market for soft drinks. The major players in the soft drinks market in India are PepsiCo and Coca-Cola Co, like elsewhere in the world. Coca-Cola acquired a number of local brands like Limca, Gold Spot and Thumps Up when it entered Indian market for the second time. PepsiCo’s soft drink portfolio also consists of Miranda and 7Up along with Pepsi.
Red Bull holds a 70 percent share of the world market for energy drinks, or functional beverages, a category it was largely responsible for building. Its dominant position in the fastest-growing segment of the soft drink market in a number of countries has drawn a number of imitators. Red Bull has become a case study in successful guerilla marketing in the United States and United Kingdom. Marketing is aimed at hip young people with active lifestyles, though the formula began as a popular tonic for blue collar workers in Thailand. Globetrotting Origins Dietrich Mateschitz was born in 1946, a native of the