Product development can be seen as high risk because the target market may not want to try new products but there certainly is a gap in the market for healthier fast food which could lead to them decreasing McDonald’s market share. Tim is also carrying out market penetration which involves selling existing products into existing markets. Tim’s company’s first market strategy in Canada was market penetration because it started selling coffee and doughnuts just like competitors. This has led to him planning to introduce his products into America, not just Canada. This is a good decision because the company’s overall market penetration in Canada exceeds that of McDonald’s in the US.
Starbucks was hit hard, the net income was down nearly 70% and it also dealt with its first ever decline in quarterly revenues. CEO Howard Schultz suggested that Starbucks is following a well organize plan to rebuild the strength of the business through more developed operations. While declining sales and profits could be the main reason, because on the global recession, Starbucks share price showed more of a concern about the company’s future. Starbucks problems could have also came from several other factors: Could Starbucks expansion resulted in too much store mass in a few metro areas. Growth of competition, not just from other coffee restaurants but from big-time fast-food restaurants like Krispy Kreme, McDonalds or Dunkin Donuts.
| High Fructose Corn Syrup: Too Sweet to Eat? | High fructose corn syrup (HFCS) is definitely bad for you. It is also bad for the planet, and I believe that it is a major driver of the obesity epidemic, despite the position taken in June 2008 by the American Medical Association. The AMA concluded that HFCS isn't any worse than other caloric sweeteners and that there is "insufficient evidence" to restrict its use or require a warning label on products that contain it.HFCS is a relatively recent invention for sweetening soft drinks, juices and foods - the production process was developed in Japan in the late 1960s, and the new sweetener entered the American food system in the early 1970s. It tastes sweeter than regular corn syrup, blends well
Porters five force model is “a framework for industry analysis and business strategy development.” (Porter, 2008, p68-104) The loss of the patent broke the barrier of entry into the market hence there was a high threat of new entrants. Buyer power was low because of the high premium price for a cup of Dippin Dots ice cream, the most common buyers were people who grew up on it. The threat of substitutes was high as there were many alternatives customers could opt for in the frozen food section. Competition in Dippin Dots industry was stiff, there were two large companies that dominated the industry, 500 small businesses and other family owned businesses that all produced ice cream. Question 2 A value chain is “a chain of activities for a firm operating in a specific industry.” ( Porter 1996, p61-78) Dipping Dots ice cream was produced from super freezing of chemicals and liquid cream by process called flash freezing
Brief Case: Reliance Baking Soda Situation Analysis: Reliance Baking Soda is an established mature product that is common in households. The product is sold through several types of retailers and is often sold through promotions at both the consumer and trade level. As the year 2008 quickly approaches the domestic brand director is tasked to increase profits by 10% before SGA, overhead, and taxes in order to fund the launch of two new high priority products by 2008. Problem Definition: Baking soda is a boring product that has low turnover. Furthermore the brand has the current advertising campaign emphasizing on different ways to use baking soda can be assumed to not be very effective since advertising recollection is low.
Toshio Takayama, director of the office of the president, described P&G’s marketing approach as “confident and aggressive.” He went on to say the company uses “its financial and marketing muscle, positioning its new product introductions to capture market share from competitors in a single rush.” Improved Pampers - Product Development P&G introduced the original Pampers in 1977. The product was well known, but it did not have a good reputation. Due dents in the cardboard box incurred during shipping, mothers assumed the diapers were of poor quality. In addition, American infants are generally larger than Japanese infants, so Pampers did not fit accurately. This caused leaks.
Until mid of 2004, the company faced a lot of problems which included declining in sales, falling revenues, failing franchisees, closing stores, having problems with the U.S. Securities and Exchange Commission over false and misleading financial statement, and law suits. These leaded KKD to hold back the expansion plans that had been projected. In late 2005, the stock traded around $6 per share, down almost 90% from its all-time high of close to $50 per share. The new strategy had been executed which focused more on a specialty retail strategy than a wholesale bakery strategy, promoted sales at company’s own retail stores and used the ‘hot doughnut experience’ as marketing tactic with customers . An additional strategy is to expand the number of outlets nationally using both company owned stores and area franchisees.
The business was run by Birmingham and then the Americans took over the business. Cadbury was the best chocolate factory, which created delicious chocolates like Dairy Milk, Cadburys cream egg, dairy milk bubbly and Crunchie. Cadbury world is growing because it is in the tertiary sector and they offer chocolates and a lot of people enjoy eating chocolates. Car manufacturers in the West Midlands have shown a significant fall in vehicle sales last year. Throughout 2008 Aston Martin's sales fell by 28% while Land Rover sales were down by 30%.
We need to make these sugary drinks not so easy to buy. Everyday the soda companies come out with some new drink to suck us in to buying them and getting us hooked. Pepsi and coke are famous for this, but we still feel the need to try the drinks that come out. Even though most of us know that these drinks we consume are bad for us. In conclusion I believe having a tax that increases the prices on sugary drinks is a good place to start for the obesity epidemic.
What is it about starbucks coffee that makes it better than dunkin donuts coffee. Although many people argue about which coffee is better. Starbuks is the clear winner. supports of dankin donuts will disagree, they belive that their products are far superior because it cost less and they are the king of donuts. According to Squidoo.com starbuks is an international company that has 17009 branches all over the world (2011).