Apex should consider beta entry as an application innovation and a line extension to its current stigone market. Line extensions can provide low risk, given established reputation and customer base, and high revenues. Leveraging these two aspects, along with current category momentum, can generate high returns, Moore (pg 108-109). Apex can capitalize on their established brand and current stigone products and now redirect their efforts in the same market instead of starting over, Moore (pg 80). By continuing in the
There are two main profit maximization methods used, and they are Marginal Cost-Marginal Revenue Method and Total Cost-Total Revenue Method. Profit maximization is a good thing for a company, but can be a bad thing for consumers if the company starts to use cheaper products or decides to raise prices. This is what some firms in the leisure industry will aim to do, for instance, Cinemas will hope to achieve the highest level of profits. Although most firms in the leisure industry aim to maximise profit, some firms have other main objectives, such as to maximise growth. Growth maximisation is where the firm’s main goal is to increase the size of the firm as much as possible.
Clorox also has a large marketing budget, an experienced research and development team and most importantly, brand recognition. Clorox can use their large market share to attract customers to new or improved products. Also brand recognition will be very important in the sale of the faucet filtration systems. They claim to have the best tasting water and according to their research, customers are more concerned about taste than removing contaminants. Even though the Brita products are a bit more expensive, people are willing to pay at that price for greater tasted water.
The lack of research and development could have a negative impact if the company does not choose to invest time in this form of development(weakness). The benefits toWW using ^ PR consultancy in order to help define and reinforce the brand image of Brompton Bicycle are also mentioned as a means to increase ^ ^ market share. My advice to Butler-Adams would be The company could build on opportunities by investing additional resources into research and development in order to identify the niche market that Brompton Bicycle appeals to. Reinforcing the brand image through the quality, built to last appeal of the product will aid the company in gaining more market share. Using a PR consultancy service may be an effective way to do this(opportunity).
These scenarios made it possible for the company to enjoy high profit margins. The situation here and the purpose of the paper is to explore alternative ways that the Guillermo Company can use some financial concepts to improve the chances of the company surviving is predicament. For the Guillermo Company to be able to weather these new forces of competition and resist extinction, the company must improve their profitability, match competitors on wages scales and, also eliminate any wasteful operation process. Solutions
The report will detail possible strengths and weaknesses of recommended courses of action and how a marketing plan would contribute to the company’s business objectives. 2.0 BUSINESS OBJECTIVES Kingsford charcoal forms a large segment of the Clorox company portfolio, and a decline in overall sales contributed to low stock value for the parent company. The Kingsford brand has proven strong in both market magnetism and competitive advantage, however, outside competition in aligning markets have avowed the need to ‘invest to grow’ the market and improve position or face a formidable future of deteriorating sales. The objective here is to increase profits for the Kingsford company. 2.1 BUSINESS STRATEGIES Increase overall company sales and profit by investing time and resources in growing the market and developing new opportunities for consumers.
• A differentiator gains a competitive advantage because it has the ability to satisfy customers’ needs in a way that its competitors cannot, which allows it to charge a premium price for its product. • Premium prices → increased revenue → superior profitability • A differentiator invests its resources to gain a competitive advantage from superior innovation, excellent quality, and responsiveness to customer needs • A product’s appeal to customers’ psychological desires is a source of differentiation. ▫ Example? 13 Differentiation • Generally, a differentiator chooses to divide its market into many segments and offer different products in each segment • A differentiated company concentrates on developing distinctive competencies in the functions that provide competitive advantage ▫ These are still expensive! • A differentiator must control its cost structure to ensure the price of its products does not exceed the price customers are willing to pay for them • When differentiation stems from the design or physical features of the product, differentiators are at great risk of being imitated ▫ Example?
While theft and low income consumers bring the possibility of providing only moderate revenue gains, if not a loss, operating in impoverished areas can also be a source of growing potential for the business. Many companies advertise philanthropic missions, such as donating to charities every year or helping to provide for the families of their employees. While these are messages that consumers hear, a more powerful message can be the one that the consumers themselves see. Rather than closing down those stores, Company Q should focus on the reasons for the high crime, and offer ways to reduce that crime rate. Offering work programs that help prepare young people for management or skilled positions is a good way to take crime off of the streets while showing to the community that the business cares about the welfare of the population.
It has become one of the key marketing mix elements. Though there is no doubt about its effectiveness in bringing in a fortune to the company there is also the risk of it going wrong in its principal objective of bringing in more revenue. The risk involved is huge to the extent that a company considering the use of celebrity has to make a very careful analysis on certain attributes before venturing into it. What really is a celebrity endorsement? It is a marketing process by which a brand gets into a contract with a celebrity and makes the celebrity to endorse the use of its products in a way that it creates trust among the customers.
In term of politic that will affecting the 99 Speedmart is government policy. This is because the government policy gives opportunities for growth and profit an attractive manufacturing and export base in the region. Government commits to maintain the business environment that providing companies with the opportunities for growth and profit. However the changes in government policies may either affect positively or negatively. In negatively of the government policy is they can block business operations such as finance, marketing, or property and automatically it become risk for 99 Speedmart businesses.