Because of the product’s longer shelf life, Natureview Farm’s brand of the 32-oz.cups had achieved a 45% share of this size segment in the natural foods channel. And this company had also started exploring multipack yogurt product. As a major brand in the natural foods channel, this company had developed strong relationships with leading natural foods retailers. Now, Natureview Farm accounted for 24% of yogurt sales
Consumers are buying more snack chips per person, an increase of 2 pounds over four years. * Frito-Lay is the worldwide leader manufacturing and marketing of snack chips. Frito-Lay is a national brand firm that distributes products nationwide. Frito-Lay accounts for 13 percent of snack-food sales in the United States, with about one half of retail sales in the snack chip category. Also, Frito-Lays has eight of the top ten selling snack chips.
Breakfast cereal sales in Australia were described to as “stagnent”, having been a 39 per cent increase in volume sales for hot cereals and 27 per cent growth for muesli in the past six years, Looking beyond breakfast cereals, consumers are now opting for energy and nutrition bars, which recorded a 104 per cent volume growth in the past six years. (As cited by Tom Decent,2015) Australian made all the
SciTronics had a total of $ 102,000 (75,000 + 27,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ 16,120 (avg. tax rate = 38%) during 2008. Its return on capital was 15.8% in 2008 which represented an increase from the 8.7% earned in 2005. 4. SciTronics had $ 75,000 of owners’ equity and earned $ 14,000 after taxes in 2008.
Costs/ Revenue/ Profit The revenue of costa coffee has consistently increased from 2007 to 2011. As you can see from the line graph below, at 2007 the revenue was 1,173.50 then to 1,599.60 in 2011. The direct costs of Costa, which are the cost of sales, have also increased over the five years. While the gross profit has increased consistently, the gross profit margin has rapidly increased but after 2009 has gone down. Gross Profit ÷ Revenue x 100 = Gross Profit Margin Gross profit Margin The gross profit margin is the net sales minus the cost of goods and services sold, and is usually shown as a percentage of the turnover.
The company’s success has enabled it to grow to a total of 276 stores in United States, Canada and Great Britain as of 2007 (Thompson, Strickland & Gamble, p. C-2). The growing trend of organic foods has continued to increase. Sales rose from $1.8 billion in 2000 to $6.5 billion in 2007 (Thompson, Strickland & Gamble, p. C-11). Trends that can negatively impact Whole Foods Market are “through a loss of sales, reduction in margin from competitive price changes, or greater operating costs such as marketing” (Annual Report, 2009). The major trend that affected Whole Foods Market was mainstream supermarkets, such as Safeway, Kroger and Publix, expanding its grocery selection to include organic products (Thompson, Strickland & Gamble, p. C-5).
Medium High: This product is not only popular with mothers, but is a low cost, high protein food for those that are limited in income Cash Cow Continue to develop new flavors and product packaging to match today’s busy lifestyles and variety needs, such as almond butter. Positioning for Jif Peanut Butter Jif Peanut Butter can be categorized on the Boston Consulting Group’s matrix as a “cash cow”. Since J.M. Smucker, Co. acquired the Jif brand in 2002 from Proctor & Gamble, they have reinvested profits and more than doubled its market share size based upon an increase in consumer demand. Peanut butter is a highly nutritious, relatively low cost food.
ZESPRI: Current Marketing Strategy Presently Zespri International Limited is considered the world’s preponderant marketer of kiwifruit, while selling to more than 53 countries in addition to managing 30 percent of the global volume. Because Zespri dominates one-third of the volume of exported kiwifruit, they continue to build a resilient reputation in their areas of focus which includes health marketing targeting health-conscious consumers who typically repeat purchases based on the nutritious benefits of kiwi consumption. Zespri continues to focus on R&D innovation in developing and expanding their product line with new varieties in order to attract new and existing customers with the emphasis on increased sells. Although Zespri is eager to invest $20 million per year endorsing growers to cultivate a superior and sustainable product, they are also concentrating on brand awareness through in-market deliverance of better tasting fruit. Because Zespri’s is 100% grower-owned, its focus is on connecting the market with the growers ensuring the product is in the exact market at the exact time within each business exchange.
The main competitors in this segment for Xcellerate will be Red Bull, Monster Energy and Livita, however Red Bull’s dominance is easily identifiable with 5.6 million litres sold in 2011 (Marmet Sizes - Historic off trade volume - mn litres Malaysia, 2011). This equates to a current market share of 30% in the energy drink market but in a growing segment there is space for Xcellerate to thrive with its new concept of healthier energy drinks. Xcellerate will be marketed in the Klang Valley where there is a consumer base of roughly 7.5 million people. Having a fully integrated road and rail network means that successful distribution of the product will be much easier to accomplish within this area, as well as any advertising and brand awareness campaigns. 2.0 SWOT Analysis: 2.1 Strengths: * Health Conscious: Xcellerate is not as reliant on sugar and caffeine for its energy boost and can be marketed as a healthier alternative that still provides the same buzz.
The increase of private label brands has been a trend in the grocery industry over the last five years. Private label foods account for 17% of total food and beverage sales, which is up 3% from 2005. Grocery stores can make higher margins selling these products, and have been able remove the perception that they are lower quality. Reed, being known for its quality goods, could still offer private label brands without damaging its image. The lower prices of these brands will attract customers and ultimately increases Reed Supermarket’s market share in the area.