If Pepsi can do well in economic recession then it could do even better in economic booms but it must stay in touch with consumer tastes and trends. In the 1990’s to increase brand loyalty to Pepsi, they launched the Pepsi Stuff campaign. Consumers of Pepsi were awarded points through label packaging they could use the points to buy merchandise. In the mid 90’s consumers started to become more health conscious. In 1997, PepsiCo started to increase their revenues again by changing their product mix through acquisitions and divestitures.
However, in the late 80s, one of the most serious Coca-Cola competitors, Pepsi, implemented a new marketing strategy and caught up with its market share. The competition of the two companies was primarily based on taste. Pepsi introduced a series of commercials called “The Pepsi Challenge.” Surprisingly, consumers preferred Pepsi over Coca-Cola. Pepsi’s market share skyrocketed. Concerned with Pepsi’s success, Coca-Cola decided to replace its old formula with a sweeter variation and introduced a new product named “New Coke.” The author provided a detailed report about the $4 million budget that Coca-Cola spent on market research.
Therefore, the company determined its core developing strategy to retrieve its market position. The strategy is the Three-legged growth strategy, which includes organic sales growth of existing brands, new product introductions, and further strategic acquisitions that fit within the company’s vision. Along with the core strategy, Smucker’s strategic acquisition could be defined as its core competence. It was right for Smucker that only acquired those matured and leading brands in markets, which proved this strategy successfully brought Smucker great profit increasing from $36 million to $494million in a 10-year period. In addition, acquisitions of succeed brands also expanded Smucker’s product diversities and market shares.
However, it appears that the Spain growth is slower than expected. Delta started direct involvement in Spain operation and reorganized its European management team. Delta decided to dissolve partnership with Terralumen despite the success of the joint venture. Delta’s decision shocked Costas, and what made matters worse is that he had to develop a dissolution strategy despite his disagreement to end the partnership. Blue Ridge Restaurant Corporation Established in Virginia in 1959 Acquired by international beverage company for US $420 million They formed a joint venture with Terralumen S.A. in Spain Delta Foods In 1996, Delta Foods bought Blue Ridge Reputable soft drink and snack food company Under this new management they wanted to avoid the practice of joint ventures Yannis Costas The main character of the case study American educated Greek Worked in Blue Ridge’s international division as a European regional director Went on to become responsible for joint ventures and franchises in Germany, Netherlands, Spain, Northern Ireland, Denmark, Sweden and Ireland Analysis using MBI I can examine the difference in management styles in Spain, America, Greece and Finland.
Bringing in this initiative of building and expanding nutrition products through product categories such as; Quaker, Tropicana, and Gatorade, calls for effective product packaging, advertising campaigns, marketing campaigns, and research and development. Research and development includes such costs as developing new products, improving the quality of current product lines, and proposed initiatives. The expenses for PepsiCo incurred through research and development on an annual basis, have been increasing each year for the past few years. In 2010 research and development costs were $488 million, in 2011 they were $525 million, and in 2012 it increased to $552 million. This initiative will affect cost, but not in a negative way.
It showed that 2011 figure was increased by 7.3%. Coco-Cola is one of the largest and well-known beverage company all-over the world as Coca-Cola sells beverages to more than 200 countries. Coco-Cola could make a long-term investment at the current price, the valuation given the ratios to be margin in a safe way. Revenue Growth: 8.5%. Cash flow Growth: 8%.
These are divided into 3 main operating divisions, namely beverages, food and General management. Tea continually contributed to over 40% of total revenues. The company plays actively in the convenience e food and instant foods markets, and went into successful collaboration with Pepsi; offering bottled, canned and fountain teas. Executive Summary The Thomas J. Lipton Company has remained high amongst the most profitable Unilever subsidiaries. The business strategy of the Thomas J. Lipton Company entails reinforcing its position as a market leader in the tea trade, and other industries where it trades.
NBB makes 7 standard beer lines which includes Sunshine Wheat, Blue Paddle, Abbey, Mothership Wit, 1554, Trippel and the best-selling Fat Tire Ale. In addition, NBB also has 4 additional seasonal specialty brews. Their products are sold throughout the western, mid-western and south-eastern areas of US totaling a distribution of 26 states. The company is seeking to retain its culture and focus as it seeks to continue to grow its revenues and its brand. New Belgium’s corporate core values suggest that they can be profitable by doing good not in spite of the additional focus on social responsibility, sustainability and a positive work culture.
What was the nature of this repositioning? What were the new use situations that helped revitalize the sales of baking soda? Its assumed that Arm & Hammer experienced market growth due to the positioning of their well-known baking soda product as a must have for baking needs. However, customer segments have changed resulting in less use of baking soda at home. As a result, the company was drawing near a declining lifecycle and compelled to innovate organically where according to Darwin “on this path the company uses its internal resources to reposition itself into a growth category reconnecting with its most valued customers and finding new problems to solve for them”.
Over the next few pages I will discuss in detail eh history of one of the most famous breweries of all time Anheuser Busch. I will look at how the company was started and what changes or lack thereof had been made since its inception. I will also look at the marketing aspect of the company and focus specifically on the SWOT analysis (Internal Strengths and Weaknesses and External Opportunities and Threats). By looking at this I hope to highlight some of the marketing strategies used by Anheuser Busch and also look at how this will affect them moving forward into the future, especially with the impact of being bought out by InBev. Anheuser Busch is one of the biggest brewing companies in the entire world.