Cola Wars Continue: Coke Vs Pepsi in 2006 1. Why is the soft drink industry so profitable? By reading the statistic factors: ■ The annual consumption of gallons per capita of soft drink grew from a sum of 114.5 to 153.4 (+340%) in the year 1970 to 2004. Out of this, the annual consumption of gallons per capita of CSDs grew from a sum of 22.7 to 52.3 (+230% growth) in the year 1970 to 2004. ■ 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.
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 .
Two-thirds of the industry sales were captured by prepared dips. Research that has been conducted in the industry shows that dip sales are growing at 10% per year. The growth that occurred in 1985 was due to price increases throughout the industry. The total dip sales that were linked to the amount of usage of salty snacks were 67%. The percentage of chip usage that is related to cheese-based volume is 85%.
Incorporation of materials from book to project Part a: Target Market Selection – Funnel Process Level 1: Determine if a basic need for the product exists in the target markets From our research we have determined that a basic need for the Tim Horton’s brand exists in both the Chinese and South African markets. The main basis for this finding is the growth in both fast food (quick service restaurant (QSR)) and hot beverage sectors. South Africa – Hot Drinks (Marketline Advantage) Market value The South African hot drinks market grew by 4.3% in 2010 to reach a value of $911.1 million. Market volume The South African hot drinks market grew by 1.8% in 2010 to reach a volume of 49.6 million kg. South Africa – Fast Food (QSR) (ifama.org - 2007) China – Hot Drinks (Marketline Advantage) Market value The Chinese hot drinks market grew by 5.8% in 2010 to reach a value of $10,974.3 million.
About 150 million consumers in the US drink coffee, with a reported 89% of US coffee drinkers brewing their own coffee at home, this creates a market for the Mystic Monk Coffee. Intense competition in this market is seen through its competitors that include;
Team D obtained Starbucks annual report and SEC filings for the past two years and has compiled ratio data and analysis of current ratio, debt ratio, return on equity, and average days receivable. Corporation Ethics and Compliance Starbucks rely on the worldwide popularity of coffee to lure their customers into their stores and also offer a variety of small food and snack based items. Starbucks has also recently introduced itself in the supermarket with a ready to brew brand of Starbucks coffee. This worldwide corporation has 17,000 stores and is a growing business inside and outside of the U.S. The role of ethics and compliance within Starbucks financial environment is a big part of the company’s business model.
It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart). It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand. The company was founded by Jack Cohen in 1919 and opened its first store in 1929 in Burnt Oak, Edgware, and Middlesex. The TESCO name first appeared after Cohen purchased a shipment of tea from T.E. Stockwell and combined those initials with the first two letters of his surname.
Market Conditions Centralia, Missouri had food and beverage sales of $62.3 million in 2002, which was a 4.6 percent increase over the previous year. Superior and three other major competitors, Harrisons, Grand American, and Missouri Mart account for eighty-five percent of food sales in Centralia. 41.6 percent of Centralia’s population is between the ages of twenty-five and fifty-four. 30.6 percent of household income is between $15,000 and $34,999 and 39.6 percent is between $35,000, and $74,999. In 2002, Superior held an estimated twenty-three percent of the food sales market, Missouri Mart had twenty-seven percent, Harrison’s had twenty-two percent, and Grand American had thirteen percent.
Dunkin Donuts Profile Products Dunkin' Donuts is the world's leading baked goods and coffee chain, serving more than 3 million customers per day. Dunkin' Donuts sells 52 varieties of donuts and more than a dozen coffee beverages as well as an array of bagels, breakfast sandwiches and other baked goods. Strategic position in the market place • #1 in iced regular/decaf/flavored coffee* • #1 in hot regular/decaf/flavored coffee* • #1 in donut category* • #1 in bagel and muffin category* • #2 in breakfast sandwich servings* • #1 in customer loyalty in the coffee category since 2007, according to Brand Keys * CREST data year ending December 2012 Strategic plan In January, Dunkin’ Donuts began recruiting multi-unit operators for Los Angeles, Riverside, San Diego, San Bernardino, Ventura and Orange counties, with a long-term goal of having more than 15,000 Dunkin’ Donut restaurants in the United States. In addition to traditional restaurants, the company is actively identifying franchisees to open a wide range of non-traditional venues including colleges, universities, casinos, military bases, supermarkets, airports and travel centers. Philosophy To be recognized as a company that responsibly serves our guests, franchisees, employees, communities, business partners, and the interests of our planet.
Subject: Strategic Marketing by professor V. Camps European University Business School MBA Group A Adilbek Umraliyev October 2014 Starbucks case analysis General goal: Improve speed-of-service and thereby increase customer satisfaction How to do it: Invest additional $40 million annually in the Starbucks’ 4500 stores to add the equivalent of 20 hours labor per week What need to do: Reduce the service time for each customer to maximum 3 minutes How did they get it? In short, SWOT-analyze of the Starbucks External: 1) Demographical: customer type is changing; 2) Social: demands of customer is changing; 3) Technology: Impacts of innovation and new technologies; 4) Geographical: location of coffee shops. Opportunities: - available capital to invest (for instance: Schultz’s experience with $25 mln., also company have good financial condition); - customer demands for fast-service; - new technologies (special machines for making coffee). Threats: - independent low-costers; - substitutions (instant coffee, capsules etc. ); - local economic situations (crisis, political aspects).