The energy beverage companies are targeting same group of people as Red Bull and it is hard to make significant increase in profit. To make more profit companies should target diverse types of consumers to differentiate your company from the other companies in the same branch. The heavy consumers of energy beverages are consist of males between 12 and 34 ages. In this market is high brand loyalty which means that average consumer is limiting his/her choice to only 1.4 different brands. The convenience stores and supermarkets are the dominant off-premise retail channels for energy beverages.
Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet. Never the less one of the biggest aspect for their sudden popularity was that celebrities where seen In superstyle cloths. Using famous people is one of the best marketing tools you can use, as potential consumers might be attracted by their appearance and style. Especially young people, which is superstyles target consumer, is attracted by
The firm needs more attention to a solid marketing effort including a website design and website launch and it needs to find alternate means of financing beyond its current sources. In 2003 and 2004, more than 52% and 60% of the customers felt that they paid more for the merchandise that the merchandise was worth. Kudler Fine Foods will employee a generic strategy of focus. Kudler Fine Foods will serve their niche market that is the gourmet chef and people that appreciate and are willing to pay for high quality, specialty, organic and locally grown foods. “A firm pursuing a focus strategy is willing to service isolated geographic areas; to satisfy the needs of customers with special financing, inventory, or servicing problems; or to tailor the product to the somewhat unique demands of the small- to medium-sized customer” (Pearce and Robinson, 2009, p.205).
We must also expand sales to our newer customers by utilizing public relations activities, trade shows, brand development, and sales force promotions. These changes and implementing our recipes to reach our goals will help us reach our goals on a steadier track. Sixty percent of our incremental sales will come from our existing customers by the end of the year. We must take a consultative sales approach to understand the current needs of our customers and anticipate their future needs as well to satisfy and keep our existing customers. The other forty percent of our sales will come through new customers, therefore we must reach these new customer through trade shows and leverage market research reports.
J and J cameras came to these decisions for 2011: To target families that value, high picture quality, with an importance in lens focus; and will respond most likely to a fun an exciting ad campaign. J and J also came to the decision that an outside agency would assist and thought that there was an importance in marketing in TV and radio. The budeget for this year with the marketing campaign was $5,600,000. The TV Magic Agency cost an $350,000 that was subtracted from that budget. That left $5,250,000 to allocated through different media to all the reach of our propmotions to our desired target
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.
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.
Healthy choices are always more expensive than bad choices. In “A Tax That Invests in Our Health” by Richard F. Daines, he remarks the reason that people prefer bad choice over healthy choice. He writes, Healthy choices are rising in price while the cost of bad choices falls. Low-fat milk costs more than soda. So grocery stores in poorer neighborhoods stock less milk and more soda, and the relentless advertising from the beverage industry and fast food joints makes sweet drinks an expected part of daily living.
For instance, Kellogg took $400 million restructuring charges during 1998 to 2000 in order to improve the cost structure. Also, the acquisition would help company improve its distribution channel by selling the products in Keebler’s channel. The diversified product lines based on its global distribution channel would ultimately help the company generate more revenue. The risks are the major competitor General Mills seems investing more on product innovation in order to acquire more market shares in cereal business and the acquisition would increase total debt form $2.1billion to $6.4 billion between 2000 and 2001, while leverage goes up from 1.6 to 3.9 times. That gives the company a BB credit rating.
In September 2012, Aldi has announced that they are increasing the price of milk again (Ford, 2012), this has also given Aldi an opportunity to improve its image of an ‘underclass-discounter’ in the UK and Switzerland. By providing higher quality of services through training and development of resources and increasing the prices of products, it does not deter customers from choosing Aldi over their competitors. Report states that consumer are happy and chose Aldi as their preferred choice for supermarket due to its lower cost as well as no compromise to quality (Anon., 2014). Another one of Aldi’s strategy is to start advertising campaigns to