It also indicates that investors are expecting a higher future growth in company D compared to company C which has a lower p/e ratio. From the article, we know that company C is a national brewer
A competitive advantage is an advantage over competitors gained by offering consumers greater value either by means of lower prices or by providing greater benefits and services that justify higher prices (Spender, 1993). There are several competitive strategies that a business will use to make up their competitive advantage. New Belgium Brewing uses the differentiation strategy of selecting one or more criteria used by buyers in a market. It is about charging a premium price that more than covers the additional production cost and about giving customers clear reasons to prefer the product over other, less differentiated products (Spender, 1993). Well-known companies have already proven that they can differentiate their brands and reputations, as well as their products and services, if they take responsibility for the well-being of the societies and environments in which they operate.
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.
This could be done by conducting surveys, and looking at recent trends and changes in the beer industry. Stanley Park Brewery should aim to do these changes and implement them as soon as possible. These specific objectives will increase both the market share and sales
Assignment #3: Foreign Market Entry and Diversification NAME Professor BUS 499, (5/13/2012) 1. Identify and discuss the trends in the global beer markets. In markets where beer consumption is often tied to disposable income, there has been significant growth in the global beer market that is comparable to the overall economic recovery in that region. “The international beer market staged something of a recovery in 2010 with global beer consumption increasing by 2.4%. This marks a dramatic improvement on the 0.5% growth seen in 2009, but is still well below the 5%+ growth rates seen earlier in the decade” ("Global Beer Trends Report 2011", 2011).
This particular study will provide key elements with regard to capital structure which should prove beneficial to the operator, particularly for a new entry. In stage two of the Manson proposal, Study G gives an indication of beer drinking preferences in the market area, which should provide Larry with valuable information with regard to the inclination of local consumers to purchase Coors, as well as consumer perceptions in terms of the
The article further discusses a new marketing campaign they will be starting in 2011. This article is important to management because Miller Coors LLC revenue has been declining and the Chief Marketing officer has recognized this and is attempting to increase future income by capitalizing at the time when beer sales are at its highest. This is also important for management because they have recognized they need new product development strategies as well as diversification. General Analysis The current management trend is that management recognizes that they still have a high market standing, however their sales are down, and they must be innovative, to be a leader in introducing new products. Peter and Donnelly (2009), state” some of the most successful business organizations are here today because many years ago they offered the right product at the right time to a rapidly growing market (p.6)”.
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
Introduction William Wrigley Jr. Company is the world’s largest manufacturer and distributor of chewing gum. The branded consumer food and candy industry is extremely competitive and dominated by the largest players. Wrigley’s is a conservatively financed company with no debt and despite this position has produced significant growth in the last couple of years through foreign expansion and new products. Blanka Dobrynin, managing partner of Aurora Borealis LLC, would like to explore the possibility of an investment into Wrigley on the basis of persuading Wrigley to leverage the company and create more value for shareholders. Aurora Borealis LLC is a hedge fund with about $3 billion under management that pursues an “active-investor strategy.” In this strategy Aurora identifies opportunities for corporation’s to restructure, invests into the shares of that company, and then persuades management and the board to restructure.
1 Branding Strategy 2 Dessert flavored Pinnacle Vodka offers their consumers a chance to relax and indulge in delciously sweet cocktails. Because Pinnacle targets a younger consumer market, their strategy needs to rely on innovationi and uniqueness with the ability to capture the essencce of a good time with friends and family. Not only are those core values necessary, but today's youth require constant and changing stimulation to keep their interests. Therefore, Pinnacle adheres to their consumer needs and wants by continuing to proliferate their vodka flavors and building brand value with each introduction. Beam Inc.'s General Manager, Deb Boyda noted, “We had the chance to create an iconic integrated brand campaign from the ground up focusing on the fun of the product (Brazzier).” The vodka line's branding strategy positions the array of flavored vodkas as a way to add to a fun, playful, and congenial atmosphere when being consumed.