By1992, its sales were reported to have more than tripled, to nearly $100 million, making Haagen–Dazs the market leader of premium ice-cream in Europe. In the UK, the original launch country, Haagen-Dazs had taken a 19.5% value share of the premium sector (or 28% according to Haagen-Dazs), which represented one-eighth of the total ice-cream market in just two years, according to Warburg Industries. Haagen-Dazs had increased its share of this total market from 0.5% in 1990 to 4.9% in 1991 (Nielsen Frozen Food Service). During the same period, the UK ice-cream market took d dip from ￡763.9 million to ￡762.8 million. The introduction of Haagen-Dazs in the UK-helped by world-beating Mars count line extensions (Mars, Bounty, Galaxy, Milky, Milky Way and Snickers) into the ice-cream market in 1988 – had increased the profile of luxury ice-cream in the UK and Europe, making it the fastest-growing sector of the ice-cream market .
As we can see, these two factors would give any company a big edge in the frozen novelty industry, which in my mind commands a higher premium. When estimating Eskimo Pie’s value, past performance must also be considered. As can be seen from Exhibit 1 in the case, net sales have increased over 50% since 1987 ([47198 - 30,769] / 30,769), and profits have skyrocketed over 1300% since 1987 ([2526-171] / 171). Taking into account all of these factors in to account, I think that as a stand-alone company, Eskimo is worth at least 1.3 times 1990 sales, or $61 million. 2.
With the development of the society rhythm, the fast food has become necessary industry for people's life. U.S. fast food companies are now franchised in over 100 countries. In the U.S. there are over 200,000 fast food restaurants. Revenue has grown from $6 billion in 1970 to $160 billion last year, an 8.6% annualized rate. The 50 largest companies are hold more than 25% the revenue in the industry (Hoovers, 2013).
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.
■ From 1975 to 1995 both Coke and Pepsi achieve average annual growth of around 10% ■ American’s drank more soda than any other beverage ■ Very large market share. More than 50% after the year 1994 (reached the top to 54% in 1998). ■ Average 10.65% net profit in sales for both Pepsi and Coke. ■ The US soft drink market share of Coca Cola Company and PepsiCo Inc. grew from 53.8 % to 74.8% in the year 1966 to 2004. From this fact we can learn that the soft drink industry is dominated by these 2 firms which holding the market power and a competitive fringe with many smaller firms acting as price takers.
Cocoa future contract prices in 2008 ranged from $0.86 to $1.50 per pound, which represented a significant increase from 2007 prices. 3. Nestle, one of the largest food & beverage competitors in the world, enjoy worldwide recognition 4. Another competitor, Cadbury has a 71 percent market share in India, and enjoys a 53 percent market share in the chocolate category in Australia. 5.
These strategies if used by Company G are the best mix to achieve their objectives because they allow Company G to maximize its profit while supporting the mission statement. The remote control features of the product combined with the variety of colors available and the convenience of not having to place the product near an outlet provide unique high-quality features that will best allow Company G to achieve its goal of increasing its revenue by 25% over the next three years. Using the previously stated price strategies will help Company G sell higher amounts of the product to big retailers at a competitive price, best equipping the company to reach a breakeven point by the second year. By using the place strategies stated earlier Company G will have a fast delivery cycle and get its new product out to more stores enabling them to have the product available in most major retail stores within a few months, and by using these promotion strategies of advertising on television as well as the internet they are best able to increase product awareness among the target audience by at least 30 percent in one
First, targeting both the “Fashionistas” and the “Planners & Shoppers” segments would allow TFC increase its overall viewership levels. Collectively these two segments make up approximately 50% of all US Television Households; targeting these two segments enables TFC to reach a large audience and increase viewership. Further, the Fashionistas and P&S’s are the most interested in fashion-related TV programs of the four cluster segments—with Indexes of 140 and 110, respectively—and thus are more likely to be interested in TFC’s programming. Specifically, TFC’s Ad Sales team estimates that a dual targeting approach of these two segments would drive ratings to 1.2, compared to the Channel’s current rating of 1.0. Ultimately, targeting the Fasionistas and Planners & Shoppers clusters would provide TFC the best opportunity to obtain strong viewership levels given the large size and high interest level of these two segments.
Moreover, Product differentiation is difficult to achieve in a crowded market(over 400 new fragrances have been launched in 2007). Starbucks(an example from class) planned to increase its coffee sales. After a thorough analysis it was concluded (in unison) that Starbucks should focus on second most visiting visitors as the most frequent visitors are already generating maximum sales. Flare is experiencing a similar situation (performing exceptionally well in mass channels and Loveliest product category) and using the above idea it can be concluded that Flare should focus on drugstores and increase its sales in Summit and Essential brands. Flare can penetrate into Drugstores at cost of turning over the
Industry Analysis Food and Beverage Industry in North America: With Sara Lee being the second largest seller in North American packaged-meat industry, the food and beverage industry in North America is expected to grow annually due to the on-the-go lifestyles of many Americans. Sara Lee Foodservice The foodservice industry is the most attractive industry in terms of growth possibilities, because sales are forecasted to grow from $476 billion in 2006 to $522 billion in 2010. The growth is expected as a result of more Americans continued to eat a higher percentage of meals away from home cue to the on-the-go lifestyles. Sara Lee International The division caters toward coffee, tea, bakery, body care and home care products. There are also great opportunities in the international division by establishing the brands in developing countries such as African Countries, Asian Countries, and South American countries.