Explain. Answer: The strategically relevant components of the global and U.S. beverage industry macro-environment are: Global beverage companies such as Coca Cola and PepsiCo have relied on alternative beverages to sustain in volume growth in mature markets where consumers were reducing their consumption of carbonated soft drinks. Coca-Cola, PepsiCo, and other beverage companies have made various attempts at increasing the size of the market for alternative beverages by extending existing product lines and developing altogether new products internationally. The primary concern of most producers of alternative beverages was how to best improve their competitive standing in the market place. The global beverage industry was projected to grow from $1.58 trillion in 2009 to nearly $1.78 trillion in 2014.
In the case, it was mentioned that the $20 million project generated $66 million worth of media value, despite a drop in sales linked to the increasing health consciousness of consumers which also affects Coca-Cola. However, it was Pepsi Refresh Project’s first year, it would be expected to generate the most buzz and excitement. The second year may or may not generate as much media value. Then again, would measuring “media value” this way be meaningful if it does not increase sales, nor market share? Secondly, as the project was launched in the Pepsi cola drink trademark instead as PepsiCo, it remains to be seen what positive externalities the project has brought along – i.e.
Direct marketing gives the company more control than wholesale or retail (Kotler & Keller, 2012). The life cycle of product is important as well. Longer life cycle gives the company more time to achieve pricing objectives. Finally, Starbucks sets its prices on a simple idea: high value at moderate cost. When people feel like they are getting a good deal for their money, they are more likely to pay a higher cost (Starbuck coffee,
over the 3-year period from 2003 to 2005. Total assets dropped $1 million, or 3%, but remain near $35 million. The most notable asset change is the $500,000, or 8%, decrease in accounts receivable. However, cash did increase $200,000 which gives the company the opportunity for business investment in the coming fiscal year (“University of Phoenix,” 2006). A positive trend shows that total liabilities have dropped $1.7 million, which is accounted for by a $2 million, or 42%, decrease in long-term debt.
An instantaneous examination of income statements reads that there were strong sales figures with a worth around $70 billion sales per year. Nonetheless, there was something that caught my eye in 2009, which was the critical drop in sales paralleled to previous years. In 2009 Home Depot net sales plummeted approximately 7.8% compared to the net earnings that were dejected in 48.5% in 2009. In the 2009, dividends were declared quarterly at $0.22500 per share while in July the market price was roughly $28.51 per share. Notwithstanding increasing dividends and a moderately stable share price, the home improvement retail industry remains to struggle due to the fragmentary world wide economic complications.
But today there is a lot of demand that made the consumer create groups on the Internet demanding to launch the product. Carbonated soft drink commonly known as "Fizzy drink" in UK, accounting more than half of the sales of the soft drink market worth £7.58bn in 2007 and representing 56.1% of the soft drink sector. There has been a decline by3.5% in the market ever since 2003 because of the upcoming trend of water, fresh juice that are healthier than the carbonated drinks. In 2008 UK soft drink market showed a total sales of £8.4 billion, 1% lower than 2007. Also showed a constant growth of minimum 6.6% in the uk soft drink market with coca cola leaving Britvic and red bull in second and third place.
Analysis for the recommended solution 2.1. Demand: money cares a lot (income & price) The reason why the sales have declined in the past 5 year may come from 3 factors: Recession, Environmental Concern, and Price Competition. The MJ Brenner is overreacting to the environment threat. As research shows “In 2011,sales of green household cleaning supplies represented just 3% of all FDM household cleaning supply sales”, such a small market share itself is far from enough to account for the 7.5% decline in total sales in CleanSpritz. Economic recession has some impact on the drop in sales.
Regarding operating gains and losses, in 2005 Tiffany realized gains of 33.8 million versus 150.7 million in losses in 2004. However, more importantly, Tiffany & Co. decreased inventories in fiscal 2005 from 175.4 million to 43.6 million. This significant reduction in inventory expense within its cash flow operations aided in Tiffany’s substantial increase in cash reserves for fiscal 2005. Increased Inventories and Operating Losses in 2006 In comparison, Tiffany’s net cash reserves in 2006 decreased to 176.5 million from 393.6 in the prior year. The company’s net cash from operations also decreased from 262.69 million to 233.58 million in 2005, a difference of 29.1 million.
Due to the fact that Asian and other foreign textile manufacturers have been exported aggressively and consumer preferences are requiring higher-quality products with minimum defects, like other firms, Aurora tends to produce small amount of yarns produced with minimal period and provide to customized markets. Consequently, Aurora had decreased significantly its costs by reducing $3.9 million of SG&A expenses since 2000 and it was one reason of increasing operating profit and net earnings in 2002. Unfortunately, Aurora’s returned amount from retailers had been increased and the proportion of sales return of Aurora’s one plant named the Hunter reached 1.5% in 2002; thus, the firm’s income has not risen well. Figure 1 illustrates Aurora’s financial ratios by calculating given financial information through Exhibits 1, 2, and 6. The first, the company’s liquidity ratios-current ratio and quick ratio-had been increased smoothly for these four years.
Redesign ‘Rebranding Pepsi Campaign’ 1. Campaign title and time/date of the campaign: “My Pepsi, My Healthy, My Energy” Campaign, March 2012 2. Situation Analysis: PepsiCo faced waning sales due to the worsening US economy, economic slowdown, the global financial crisis, and plunging stock markets. Moreover, the company noticed that the US consumers’ preferences were shifting to cheaper and healthier drinks and that people were cutting down on their spending on beverages. April 28, 2011 (Bloomberg) -- PepsiCo Inc., the world’s largest snack-food maker, reported a 27 percent gain in first-quarter sales, bolstered by purchases in international markets.