Importance of Rural Marketing in India

For example, the 2007-2008 recessions considerably reduced the amount of expendable income for many buyers. Therefore in 2008, Costco’s saw a growth in sales of roughly 12.5%. However, as the economy started to rebound in 2009 their sales reduced. Over the next two years, their sales have continued to increase. Therefore, Costco’s bottom line has fared well since the economic slowdown.

Profitability ratios are functions of both the industry and a company’s position within the industry. The boundaries are set by the operating characteristics of the industry, within these boundaries profitability ratios are determined by a player’s relative position. Gross profit margin should stay constant or increase because cost of goods sold should be a constant percentage of sales or should decrease as the company’s price increases and/or volume discounts. Gross profit margin was slightly favorable stable at 28%. The horizontal analysis information showed that sales had been averagely increased by 26% from 2001 to 2003.However the operating cost had been averagely increased by 27%.

Growth and earnings slowed in the 1990s as the company’s costs increased, value-added services and solutions were not offered, new products were slow to market, and the products were not

Strategic Goal 1 fosters development of rural communities in order to make them more self-sustainable and become economically

The most noticeable growth in this section is seen in sales from 2002 to 2003. These sales have increased from 3.7% in 2001-02 to 23.5% in 2002-03 after the expansion of the store. This truly helps the company to a positive way when seeing such drastic changes. Net earnings have almost doubled and gross profit was on the rise as well, which is also a positive trend for the company that will not go unnoticed. This indicates a positive correlation and increases in profitability.

A person can see from the analysis that both companies had a fewer profits in 2005 over 2004. The increase of operation expenses was the cause of low net profits. Both companies need to rethink their operating cost to decrease their expenses which in return can help increase their profit margin.

The first financial marker to be examined will be sales. According to Lands’ End’s Annual Report to Shareholders sales increased ninety eight percent between 1992 and 2001. Sales increased every year during this period with the exception of one year, as shown in Figure 1 (a trend line in white is also shown).

In terms of industry profitability, it appears that profit margins have a tendency to fall. This is because competition is high and customers tend to buy low-priced high-value items. The average gross margin and net profit margin is 37.1% and 14.3%, respectively (MSN Money, 2010).

Want to know how to fix your shrinking profit margins? Continue reading for a clearer picture of why your

So while the company increased its net income, it has done so with diminishing profit margins.

Profit growth has on average exceeded stated goals from 1997-2003, averaging on 33 %. Transaction value, an indicator of the activity level, has grown notably less than profits (207 % vs. 289 % over six years), indicating profitable growth. This contrasts with the general squeeze on profitability and growth for the industry. International operations have not performed well. Transaction value has grown more than 50 % from 2001-2003, while profits have declined 65 %.

Operating profit margin figures in the table above show the return from net sales[13]. However profit margin ratios are high enough for the 3 years, there is a fall from 12.86% to 11.26% during 2011-12. Sales revenue increases with a higher rate than gross profit so there is a poor

Today that push of farmers to leave their rural areas and move to the city can be associated with an inability to compete with large corporations. These large companies have the resources and ability to undercut and

the spring of 1996, anticipated a further substantial increase in sales. Despite good profits, the

Research indicates in Europe there are large price differences among hair care products. P&G has decided that it should place the new shampoo in the premium-priced segment; this is done in order to keep up the image of the shampoo as a high quality and innovative product. P&G should charge premium price in each country to be sold for 4.99 DM for the 200 ml bottle and for 5.99 DM for the 250 ml bottle in all the countries which had had been accepted during the consumer tests. The company cannot charge a price very few people can afford, this will also not be profitable for the company.