The projected volume increase of 4% is viewed as an ambitious goal in light of the following factors: a) an increasing competitive environment with Energade facing two major competitors (namely Tummylicious, the entry from Good Foods, which has superior dissolving and taste characteristics vis-à-vis Energade, and Tastytime, which has more than doubled its share of market in 2000); b) the expected heavy media support for Tummylicious and other competitive brands resulting in Energade no longer dominating advertising spending (Energade share declining from 65% in 2001 to 42% in 2002 declining to an estimated 35% in 2003); and c) uncertainty as to the precise volume impact of the price increase to $.59 for Energade, which is heavily reliant on
The Regional Food Manager for Ye Olde FoodKing Company has retained Mark Craig of Blue Steel Consulting to perform a regression analysis to forecast demand of your product. The four characteristics readily available included price, competitors’ price, average income, and market population. The results of each regression analysis are presented at the end of this memo. The remainder of this memo describes the regression analysis used and limitations to the data available. Running a regression provides a statistical procedure to estimate the liner dependency of one or more
In this analysis, we included the overhead expense for 1972-1977 because as the project begins to gain a foothold in the market it will acquire a larger market share and will become a larger portion of General Foods’ overall dessert sales. Also, the agglomerator and excess capacity was charged
TriState Dairies is a food processor that packages and sells dairy products. At present their core business is selling 1) pasteurized, skimmed, and plain milk, and 2) yogurts and yogurt drinks. They want to expand their market, particularly for milk. They can easily convert surplus milk production to the production of flavored milks. At the moment the flavored milks sales overall are low and the market small. The bulk of flavored milks are sold to parents who buy them for children. The marketing department thinks that there may be untapped
ELMIRA (WENY) - A proposed senior housing complex on the Southside of Elmira has been put on hold.
As a company with limited financial resources, Nantucket Nectars have been disadvantaged in their channels of distribution. They have not been able to distribute their products in the supermarket on a large scale. As can be seen from tables D and E, although most of the New Age beverages were sold in the supermarkets (55%), the proportion of Nantucket Nectars supermarket sales was only 1%. Nantucket Nectars distributed their products mainly through other channels like delis and educational institutions and is thus missing out on a large portion of the consumers pie This inevitably means that the company would be able to increase their revenue substantially if they were able to distribute their products in the
According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17.
* Geoff presents these issues to his boss, Michael Alpharo, and suggests a price reduction on most of the existing flavors by 25%. Michael rejects a price reduction by explaining that while there is profit on variable costs, the fixed costs of manufacturing sites and the expertise of flavorists still needs to be covered. He also points out the investment in technical innovations and flavors library which shouldn’t be given away for free.
We are very sorry to hear about your recent troubles with your O.C.P. Home Response System, Model #ED-209. We are aware of the problem with this model and its correlation to the upgrade, version 3.8.133. We completely understand your frustration, and greatly value your safety as well as the well-being of your home and all occupants within it. We fully understand the gravity of this situation and take this matter very seriously. Please know that we find this problem completely unacceptable and we would like to thank you for your understanding as we work on a solution for your problem.
To perform a break-even analysis, we have made the following assumptions: (a) retail margin= 60%, (b) the additional fixed cost of production per flavor, including advertising, bottling run and sundries, is $10 million and this is assumed to be an annual cost, except the bottling run, (c) a conservative estimate of percentage share of market figure is derived by multiplying the market segment percentages, as well as the age segment percentage for the category > 40 yrs. The percentage = 74% x 62% x 85% x 40% = 16%. We first determine the retail
Consumers around the world bought more snacks and beverages than ever before. They have gained market share in both snacks and beverages in the United States, their biggest market. Internationally snack and beverage units both posted healthy volume growth, even amid economic turbulence.
As marketing manager of the RBG business, Ivan Guillen must propose a solution to repair Pillsbury refrigerated baked goods (RGB)’s business performance. Since the refrigerated-cookie product line consisted of 62% of RBG’s unit sales and over 75% of the company’s profits, Guillen found it appropriate to alter this segment in the market. Proposing this idea to GMCC would require Guillen to consider all the challenges he faces. Guillen will have to discover a strategy to increase household penetration since it has fallen to 24% in the past few years. The lack in market penetration has
Solectron Corporation is but another classic case of a company that benefited immensely from the dot.com boom, only to experience the pains of the bust as the dot.com companies went down in the early 2000s. From its humble beginnings in Milpitas, CA as a solar energy products manufacturer, Solectron grew to be a highly successful global supply chain integrator with revenues of $18.6 billion by 2001. From the time it was founded in 1977 through 2000, the company grew in leaps and bounds mainly through lateral acquisitions.
Premium launching at $299 to cover costs incurred in R&D. Competitive positioning based onspeed, convenience/ cleanliness of preparation, ease of usage and taste consistency. The profit
In 1986, rivals presented a limited risk to the company due to NutraSweet’s monopolistic position in the production of aspartame. However, the development and subsequent introduction of alternative low-cal high intensity sweeteners, combined with the trend of blending, presented a major risk for NutraSweet’s product. Also, as the patents for aspartame expire in the different regions NutraSweet will face competition from alternative producers of aspartame as well.
1. How should Vermijs expect NutraSweet to respond in the Holland Sweetener Company’s entry into the European and Canadian aspartame markets?