The Marketing Strategy Of Wrigley

The company’s main objective is to increase brand recognition in the domestic market as well as

This report based on the study of “Customer Value Marketing” starts with introduction section. We have mentioned the contents of the study in objectives of the report section.

The brand must be distinct and stand out in ways that relevance to consumers’ needs so as to be chosen by the consumers among thousands of brands in the market. However, before consumers respond to the brand’s communication efforts, the brand must be understood and understood correctly. That familiarity leads to a strong, positive consumer-brand connection.

Brand competitors and the diversity of choice that is available to consumers, puts brands under pressure to offer high quality products and service, excellent value and a wide availability (Clifton et al., 2009). Brands must differentiate themselves from the competition and create an unforgettable impression.

William Wrigley Jr. Company is exploring whether it is optimal to recapitalise with taking on $3 billion of debt. Three options are revised; borrow and repurchase shares, dividend payouts or continue to function with full equity. Debt will provide a tax shield of $1.2 billion given the tax rate is 40%, this should increase the market share price to $61.53 per share. The viable method for the company is to utilize this debt to repurchase shares. The will not only increase Wrigley’s market value, via the debt shield, but also signal to market that management believes Wrigley’s is undervalued, something the dividend payment won’t achieve.

This gain value and addresses a key decisive achievement factor in the industry (Grant,2010). As position is important to offer convenience and a deep assortment, An extra unique intangible resource would be their brand representation and customer loyalty, this is vital since it can attract or attract consumers and it could be necessary to build the brand image .

The cost of debt (kd) rate of 13% was used after we assessed the key industrial financial ratios and compared them with that of Wrigley’s (See Appendix 2) to conclude that it was in the range between the BB rate of

Since an increasing number of people focus on brand names instead of product, brands become important elements for customers to choose products (Carroll, 2008). When customers trust the brand, the benefits for the manufactures are generated. In the first place, brands can be used by products as the tool to identify and differentiate themselves from various products. Secondly, brands are helpful for companies to build a competitive advantage (Bick, 2009). Therefore, organisations take more attention to branding.

Blanka Doborynin a managing partner of AURORA BOREALIS LLC tries to initiate a research for a potential investment in Wrigleys. They are trying to recapitalize the firm. Wrigley’s which is 100% equity financed has a market value of $13,103,000,000 the question begins if it is totally equity financed is it running at its efficient level? Or Is it better to recapitalize the structure and thereby bring out more efficient operational levels. They are planning to get a debt of 3,000,000,000 using it to extract the profit out of the low risk (BBB) forecast that the company possesses. They are potentially investigating, if it is good to

Coca-Cola is the largest non-alcohol beverage manufacturer in the world, which holds approximate 43% market share. The firm is also ranked in top 20 in the Fortune 500 in terms of the largest capital with over 100 billion dollars in assets. John Stith Pemberton is the founder of the firm, which is headquartered in Atlanta, Georgia. During its 100 years of history, Coca-Cola has grown its businesses substantially in the globe. Currently, the firm presents over 160 countries, including China, India, Japan, and South East Asia countries. The main objectives of the firm that is it can serve its products to all consumers in the globe, and expands its businesses to the majority of strategic regions. In order to grow and expand its present to the other major markets, Coca-Cola executes its marketing strategies based on three different categories, including price, place, partnerships, and core products. These marketing methods have supported Coca-Cola to sustain, and grow in the soft drink industry.

The 4P approach used by companies for years has become less effective cause the changing market. The four key elements of this approach does not take into account all aspects, all activities that are related to marketing. Therefore, another approach, called Value approach was developed. This approach also includes 4 main points that are: Creating value, Communicating value, Exchanging value and Delivering value.

The research on diversification-performance linkage has not stopped since the initialling research on motivations for diversification and diversified firms’ general characteristics(Chandler&Alfred, 1962; Ansoff&Igor, 1965).On the basis of Philip G. Berger and Eli Ofek’s study, product diversification may be benefit to the company by higher operation efficiency, higher probability of taking positive NPV investment plans, better debt capacity and higher tax shield, while it may also harm the firm because of over-investment in value-decreasing activities and resource lacking in well-performed segments, and Porter and Michael indicated that a firm’s ability to attain competitive advantage can be effected

The purpose of this report is to use a variety of research techniques aimed at understanding the role that knowledge and group influences have on a consumer’s decision-making process. Additionally, the report will advise a range of recommendations that an inert brand can adopt to guarantee its inclusion in the consumer’s consideration set of brands.

Organizations can build strong customer relationships and value through marketing, and the success of marketing relies on satisfying the customers’ wants and needs by providing them with the best price, product, or service. The American Marketing Association defines marketing as, “The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” This exchange between customers and a business forms a relationship; a healthy consumer/marketer relationship improves value for both the marketer and consumer (Babin, pg 322). So what exactly is the definition of value? “Value is the relationship of a firm’s market offering and price weighed by the consumer against its competitor’s market offering and price” (Kothandaraman, 2001). Value is in the eye of the customer, which ultimately makes them the value source. Customers ' wants and needs determines the features and characteristics of products and their value. With business markets, the interdependent relationship between the buyer and the seller can be seen as the source of value creation (Ehret, 2004). Value Creation is “The evolution of cooperative buyer– seller relationships in the realm of business-to-business markets, In business markets, it became apparent early on that cooperative buyer – seller relationships can be the source of value creation” (Ehret, 2004) Value Creation is based off of customer

In recent times, branding has played a pivotal role in some brands’ success. This has been made possible through the ability of some marketers to capture the essence and minds of people (consumers), and put the trends and characteristics into the personality of a brand. Customers have always found ways to identify themselves with certain products, and on several occasions, branding campaigns