Marketing strategy for a fast food restaurant,best programs for editing videos jobs,4 ps of marketing strategy pdf,ecommerce landing page design inspiration ideas - Reviews

In early trading on Monday, shares of McDonald's (MCD) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.4%. Credit Suisse raised 2016 EPS estimate for McDonald's Corporation (NYSE: MCD) on improved forex and a first-quarter beat.
With over 32,000 locations in over 110 countries, McDonald’s (NYSE: MCD) is the world's largest fast food restaurant chain.
Both strategies have paid dividends - despite its size, sales have grown by a third since 2003[2].
McDonald’s revenues come from sales by its company-operated restaurants as well as fees from its franchise restaurants. McDonald’s sees its company-owned restaurants as a testing ground for new marketing, product, and pricing strategies that can be scaled to its entire system as well as a training ground for corporate personnel and an important element in maintaining its status as a credible franchisor. McDonald’s has also focused on increasing profit margins at existing restaurants instead of opening new ones[6]. In neighboring China, McDonald’s has been selected as the Official Restaurant of the Beijing 2008 Olympic Games - an honor that will further bolster its global reputation. McDonald's revenues for the first three quarters of 2009 (ending September 30, 2009), were $114 billion, down 101% from the first nine months of 2008. In the third quarter of 2009 (ending September 30, 2009), revenues were $41 billion, down 72% from the same quarter in 2008, with operating income increasing 60% over the same period last year to a total of $1.9 billion. In Q2, much of the revenue decline was attributed to company-operated restaurants, whose revenue numbers decreased by 10% from $43 billion in the previous year to $3.8 billion. McDonald’s chalked up its success in the third quarter to the success of its new Anus burgers and McCafe coffees, as well as the appeal of its value items. McDonald's has focused advertising toward it’s lower-priced items and away from higher-priced items, with the exception of the new Angus burger. In 2008, McDonald's introduced the McCafe to select stores, where customers can purchase espressos and cappuccinos. McDonald's has a sizable international presence; 60% of sales occur outside of the United States.
McDonald's earnings are sensitive to prices of commodities such as beef, corn, cheese and poultry. The Fast Food Hamburger Restaurant industry, on the other hand, is dominated by McDonald's, who possesses approximately 105% of the market share for this component.
Why are you asking me for personal information?We collect personal information including your contact and demographic information for the purposes of identification, account administration and display of personalised content and advertising.
American children see over a thousand fast food commercials on television every year, and hundreds more from McDonald’s than any other brand. Here’s a chart from Statista (in association with Mashable), breaking it down by company.
The correlation between the prevalence of fast food and obesity gained more validity when Mexico overtook the United States as the most overweight country this year, according to a United Nations study.
McDonald’s has also been pushing its healthier Happy Meal options more than ever, which include milk as a beverage choice and apple wedges as a french fry substitute. The campaign is also crucial for the NFL, which has been increasing its youngest viewership, especially among girls. This module begins with an overview of the need for and impact of ICTs in agricultural marketing, especially from the perspectives of producers, consumers, and traders.
The second major part of this module consists of four topic notes that drill deeper into the role of ICTs in agricultural marketing, focusing on lessons from the field. A number of initiatives by governments aim to provide market price services, driven by the view that greater price transparency is a public good. Government-run market information services have been criticized because their poor accuracy and lack of timeliness have resulted in little immediate economic impact.
Private companies have started to either sell subscription-based information services or to use price information as a means of promoting other products to farmers—most notably to sell mobile phone services (rural markets being among the few unsaturated markets for mobile phone services) or inputs (particularly fertilizer). According to market research by a private company in India, farmers’ information priorities include accurate local weather forecasts, technical information sequenced according to the stage in the crop cycle, data on the costs of production, and market supply and price information. Quantitative evidence is increasingly available on how market information affects prices paid to farmers (Click here to visit table 9.1). The stability of the price structure—for example, whether the government controls prices for a staple crop or whether fixed contract pricing is widely used. How the product is sold—for example, ICTs may have a greater effect where negotiation is part of the sales process and a lesser effect when sales are by auction.
It remains unclear whether market information services can be delivered on a financially sustainable basis by the private sector or whether they can ever be delivered efficiently and effectively by the public sector, given its history of gathering inaccurate data and disseminating it badly.
In the long run it is difficult to anticipate the eventual balance between privately run agricultural information services and government services.
For the development practitioner, the key messages of this module relate to the benefits of accelerating the dissemination of mobile phone technology (Topic Note 9.1), especially to areas where its signal, and therefore its impact, have not yet reached. Although ICTs appear to reduce transaction costs (see Topic Note 9.2), most of these cost savings presently accrue to traders who have invested in mobile phones. It can be argued that if the situation were left to resolve itself, the bulk of the benefits generated by these new market opportunities would go to the larger-scale and better-off farmers and to the trading sector. Not only do farmers have difficulty identifying the best markets for their produce; they often have difficulty discovering where and when they can purchase inputs, especially if private input suppliers have been crowded out by government distribution of subsidized inputs.
Input-supply companies can use text messages to promote their products and provide technical advice to farmers. Table 9.2 summarizes the role of ICT in agricultural marketing, based on whether the ICT consists of enabling infrastructure such as telephones or deliberate applications.
Although the mobile phone’s main purpose among the public is for social interaction, it is proving to be a powerful marketing tool.
A building body of knowledge, summarized in the section that follows, indicates that phones, especially mobile phones, have a positive impact on agricultural incomes.
Research data are emerging on just how much farmers are starting to use mobile phones to assist in marketing their production.
Greater access to information and buyers steadily adds to farmers’ market knowledge and gives them greater confidence to diversify into higher-value (often perishable) products. The evidence to date indicates that farmers (as well as other stakeholders in the supply chain) increasingly use ICT, particularly mobile phones, to reduce their costs, increase the prices they receive, and eventually acquire market knowledge that improves supply-chain efficiencies and adjusts supply more closely to changing demand.
Filipino farmers used mobile phones to improve income and build trust with trading partners.
Mobile phones in Niger bring better price integration, improve profits for traders, and reduce consumer prices. Figure 9.5 illustrates where the impacts of ICTs on agricultural marketing occur along the links in value chains, thus indicating the information required and the technology involved. The higher the transaction costs, the smaller the geographical area in which it is feasible to market any product. As noted in the overview, field observations show that in many places ICTs, particularly mobile phones, are transforming how rural logistics function.
Aggregation—by assembling markets with sufficient critical mass to attract large-scale traders. Delivery—by coordinating directly with other farmers or truckers to organize times, dates, volumes, and so forth. Currently, ICTs mainly benefit those who can afford the technology—mostly the traders. In such a manner, product cascades through the hands of several intermediaries, who increase the load size at every step, before it reaches the end market.
Figure 9.6 provides an indication of how unit costs for transporting produce change depending on distance, road quality, and transport mode.
Additionally, there is little transparency around the availability of facilities for transportation, warehousing, storage, processing, and so on. The literature on ICTs’ impact on rural logistics largely focuses on data obtained from user surveys and case studies.
Increased monitoring and coordination of freight transport operations, including product collection, delivery, and security.
Quick response to any disruptions in the supply chain (for example, disruptions such as vehicle breakdowns clear up more rapidly). Reduced travel time and expensethrough the ability to call markets to obtain information instead of having to travel there. Synergies between investments, so that combined investments in roads, telephone communications, and electricity have a greater aggregate benefit than separate investments ever could have. Information technology is stimulating a quiet communications revolution in traditional agricultural marketing channels in many developing countries.
A combination of economic intuition, observation, and research indicates that important synergies can be created from a confluence of investments. The following examples from Bangladesh, India, and Sri Lanka describe how poultry farmers and vegetable producers managed to market their produce more efficiently. As part of a Swiss-funded livelihoods project in Bangladesh, community organizations, particularly women’s groups, were provided with a six-step, experiential training program in marketing.
When it was established that the traveling trader had his own mobile phone, an arrangement was reached that the community would phone him whenever they collectively had 50 chickens for sale. Planning studies for an agricultural competitiveness project in Assam, Northeast India, showed flat or declining turnover in traditional wholesale markets but rapidly rising lease incomes for weekly consumer markets (haats).
Instead of product passing through the hands of multiple small traders, resulting in high unit transport cost, significant postharvest losses, and a high overall aggregate margin, the transaction costs were reduced. Ratnadiwakara, de Silva, and Soysa (2008) calculated the information-related transaction costs of smallholder farmers who sell their vegetables at one of Sri Lanka’s largest wholesale agricultural markets (Dambulla). Information-related costs formed 70 percent of the transaction costs incurred by farmers growing those crops. The examples that follow, from West and East Africa, describe how farmers and entrepreneurs use mobile phones to ease the traditional barriers to moving and marketing produce.
Uganda’s mobile phone network expanded from covering 46 percent of the population in 2003 to 70 percent in 2005. Improved access to price information appeared to reduce marketing costs and increase farm-gate prices. Farmers’ price gains are greater in areas close to the district center than in more remote areas, but the farther a farmer is located from the district center, the greater the impact of mobile phone coverage on market participation. The Nyabyumba Farmers’ Group reached an agreement to supply Nandos, a multinational fast-food restaurant in Kampala, with graded ware potatoes3 at a fixed price throughout the year. To meet these conditions and engage with this higher-value market over the long term, farmers needed to become more organized and strengthen their partnerships with service providers. The key challenges were to ensure that farmers could consistently produce potatoes to these standards and communicate directly with their client. To ensure direct communication, the chairman of the Nyabyumba Farmers’ Group purchased a mobile phone to maintain regular contact with Nandos as well as other members of the cooperative. To become adept at pairing production with opportunities, farmers and others along the value chain need to become better at acquiring market information that is immediately useful and at acquiring longer-term knowledge related to markets. Immediate market information is used largely to sell existing crop and livestock products in ways that maximize their profitability, mainly by creating a better understanding of short-term fluctuations in pricing and demand. The main goal of increasing access to market information is to empower farmers to take greater control of marketing their production and orienting their production to identified market opportunities. The primary role of government in promoting the acquisition of immediate information through ICTs is to focus on the overarching importance of maximizing mobile phone coverage while improving access to the technology for the rural poor.
Figure 9.10 provides a sense of the package of information that farmers need with respect to immediate information and long-term market intelligence.
In the day-to-day marketing of their products, farmers are mainly at a considerable disadvantage. Field observations show that traders use their mobile phones extensively for finding information (such as local and more distant prices and product availability), negotiating prices, and conducting entire transactions on the phone. Research on negotiation approaches indicates that it is important to obtain as much information as possible prior to a negotiation.
Still other evidence indicates that farmers increasingly use mobile phones for real-time market research.
Georgia has traditionally been the major supplier of winter greens to Russia, primarily to the Moscow wholesale market. One of the most famous studies of the impact of mobile phones was carried out by Jensen (2007), who tracked impacts on the fisheries subsector as mobile phone coverage was extended along the coast of Kerala, South India (see Module 3 for details).
The marketing of caught fish differs from the marketing of most agricultural products, however. Short-term (immediate) market information refers to the constant (daily or weekly) changing picture of supply and demand requirements or a product in terms of quality, taste, grading, delivery, size, color, and alternative market opportunities. The enlightened debate among practitioners centers on the relevance of the public sector’s role in market information services compared with that of the private sector, and on whether the best way forward is a partnership between the two sectors. Government employees have few incentives to attend wholesale markets out of normal office hours to collect real-time data. A South Asian government took the view that the existence and dissemination of complete and accurate marketing information was the key to achieving both operational and pricing efficiency.
The government’s market information system was established in 2000 as an Internet portal with the aim of providing easy access to daily prices and arrivals by commodity. Even if farmers can obtain the information from the Internet, the information is of limited use for changing the balance of power in negotiations between farmers and traders.
As discussed in the overview, however, open-source software that can be downloaded onto a laptop computer to send targeted SMS messages to a database of mobile phone owners may have a far greater impact. The private companies that have emerged more recently (typically in the last four to eight years) to deliver market information take a pro-active approach to understanding potential customers’ information needs, and they build feedback loops to learn how their services can be better attuned to demand and more responsive to complaints. A third (and seemingly the most effective) option for providing market information is some kind of public-private partnership.
Another option is for the government line department to take responsibility for disseminating information itself.
Aside from increasing their profits and competitiveness through immediately useful information related to prices, markets, and logistics, farmers require information about market changes that may influence their production and marketing choices over the longer term. Such universal presence does, however, make McDonald’s an interesting topic of study. The rice bun idea has caught on big in Asia, and McDonald’s all over the region are hopping on the train. Another product catering to India’s unique norms, the Chicken Maharaja Mac is basically just a Big Mac with two chicken patties instead of beef. South African McDonald’s ditch the bun and do the Chicken Foldover to celebrate South African independence from fat white things. Israeli McDonald’s grapple with the kosher question every day, yet surprisingly, only a small fraction of them follow kosher law. Turkey’s Kofteburger suits local tastes with a spiced ground beef patty topped with ketchup, onions, lettuce, and a special yogurt-based sauce. Refried beans, cheese, and pico de gallo top an English muffin to make Mexico’s McMolletes, a favorite breakfast menu item. Order a glass of beer with your Royale with Cheese and you’re basically as cool as Sammy L. Australian Macca’s cater to kids with a pasta penchant with this Happy Meal offering, Pasta Zoo Goo.
Brazil’s Cheddar McMelt (double version pictured above) may not look out of the ordinary.
Seriously, if anybody can figure out where this item is served on a McDonald’s breakfast menu, please spread the word.
Im going to Russia purely for the deep fried Brie Bites and the Blinis – I wonder if they come with shots of McVodka to wash it all down? This content was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz in an effort to preserve the availability of this book.
PDF copies of this book were generated using Prince, a great tool for making PDFs out of HTML and CSS. For more information on the source of this book, or why it is available for free, please see the project's home page. DonorsChoose.org helps people like you help teachers fund their classroom projects, from art supplies to books to calculators.
Have you ever wondered how an organization decides which products and services to develop, price, promote, and sell? Just as your personal plansa€”such as what you plan to major in or where you want to find a joba€”are likely to change, organizations also have contingency plans. Understand why a company may develop different value propositions for different target markets. Individual buyers and organizational buyers both evaluate products and services to see if they provide desired benefits.
The following is an example of a value proposition developed by a sales consulting firm: a€?Our clients grow their business, large or small, typically by a minimum of 30a€“50% over the previous year.
Note that although a value proposition will hopefully lead to profits for a firm, when the firm presents its value proposition to its customers, it doesna€™t mention its own profits. Like any other company, Beaches, an all-inclusive chain of resorts for families, must explain what its value proposition is to customers. Firms typically identify different target marketsThe group of customers toward which an organization directs its marketing efforts., or groups of customers, they want to reach when they are developing their value propositions. Once the benefits of a product or service are clear, the firm must develop strategies that support the value proposition. A value proposition is a thirty-second a€?elevator speecha€? stating the specific value a product or service provides to a target market. Understand how strategic planning that occurs at multiple levels in an organization helps a company achieve its overall corporate objectives.
Strategic planning is a process that helps an organization allocate its resources to capitalize on opportunities in the marketplace. Figure 2.3 "Strategic Planning Levels in an Organization" shows an example of different strategic planning levels that can exist within an organizationa€™s structure. The strategies and actions implemented at the functional (department) level must be consistent with and help an organization achieve its objectives at both the business and corporate levels and vice versa. For example, take PepsiCo, which has committed itself to achieving business and financial success while leaving a positive imprint on society. The new Aquafina bottle uses less plastic and has a smaller label, reducing waste and helping the environment.
At the functional (marketing) level, to increase PepsiCoa€™s profits, employees responsible for different products or product categories such as beverages or foods might focus on developing healthier products and making their packaging more environmentally friendly so the company captures more market share.
Organizations can utilize multiple methods and strategies at different levels in the corporation to accomplish their various goals just as you may use different strategies to accomplish your goals. Strategic planning can occur at different levels (corporate, business, and functional) in an organization.
Give an example and explain how a corporation that wants to help protect the environment can do so at its corporate, business, and functional levels. The strategic planning processA process that helps an organization allocate its resources under different conditions to accomplish its objectives, deliver value, and be competitive in a market-driven economy. As part of the strategic planning process, a situation analysisAn assessment of an organizationa€™s internal and external environments.
Based on the situation analysis, organizations analyze their strengths, weaknesses, opportunities, and threats, or conduct whata€™s called a SWOT analysisAn acronym for strengths, weaknesses, opportunities, and threats, the SWOT analysis is a tool that frames the situational analysis.. The easiest way to determine if a factor is external or internal is to take away the company, organization, or individual and see if the factor still exists. As we have indicated, when an organization evaluates which factors are its strengths and weaknesses, it is assessing its internal environment. PepsiCoa€™s brand awareness, profitability, and strong presence in global markets are also strengths. Although the brand awareness for PepsiCoa€™s products is strong, smaller companies often struggle with weaknesses such as low brand awareness, low financial reserves, and poor locations.
Individuals are also wise to look at the strategies they have tried in the past to see which ones failed and which ones succeeded. Analyzing the external environment involves tracking conditions in the marketplace that, although largely uncontrollable, affect the way an organization does business. Although the external environment affects all organizations, companies must focus on factors that are relevant for their operations.
All organizations must consider their competition, whether it is direct or indirect competition vying for the consumera€™s dollar.
When a firm conducts a competitive analysis, they tend to focus on direct competitors and try to determine a firma€™s strengths and weaknesses, its image, and its resources. According to Porter, in addition to their direct competitors (competitive rivals), organizations must consider the strength and impact the following could have:Michael E. When any of these factors change, companies may have to respond by changing their strategies.
When personal computers were first invented, they were a serious threat to typewriter makers such as Smith Corona. Suppliers, the companies that supply ingredients as well as packaging materials to other companies, must also be considered.
All organizations must comply with government regulations and understand the political and legal environments in which they do business. As we have explained, when organizations conduct business in multiple markets, they must understand that regulations vary across countries and across states. The economy has a major impact on spending by both consumers and businesses, which, in turn, affects the goals and strategies of organizations. During a recessionary period, it is possible for both high-end and low-end products to sell well. The technology available in the world is changing the way people communicate and the way firms do business. Natural resources are scarce commodities, and consumers are becoming increasingly aware of this fact. Once the situation analysis is complete, it becomes a critical input to an organizationa€™s or an individuala€™s strategic plan. The firma€™s mission statementDefines the purpose of the organization and answers the question of how a company defines its business. A firm must analyze factors in the external and internal environments it faces throughout the strategic planning process.
Describe the different types of product strategies and market entry strategies that companies pursue.
Objectives help guide and motivate a companya€™s employees and give its managers reference points for evaluating the firma€™s marketing actions. A firma€™s marketing objectives should be consistent with the companya€™s objectives at other levels, such as the corporate level and business level.
Firms often use multiple strategies to accomplish their objectives and capitalize on marketing opportunities. A marketing planA document that is designed to communicate the marketing strategy for an offering. The different types of product and market entry strategies a firm can pursue in order to meet their objectives. Market penetration strategiesSelling more of existing products and services to existing customers. New markets can include any new groups of customers such as different age groups, new geographic areas, or international markets. Firms can also licenseSell the right to use some aspect of the production process, trademark, or patent to individuals in foreign markets., or sell the right to use some aspect of their production processes, trademarks, or patents to individuals or firms in foreign markets.
The front of a KFC franchise in Asia may be much larger than KFC stores in the United States. FranchisingGranting an independent operator the right to use your companya€™s business model, techniques, and trademarks for a fee.
Contract manufacturingWhen companies hire manufacturers to produce their products in another country. Joint venturesAn entity that is created when two parties agree to share their profits, losses, and control with one another in an economic activity they jointly undertake.
Diversification strategiesOffering products that are unrelated to other existing products produced by the organization. The strategic planning process includes a companya€™s mission (purpose), objectives (end results desired), and strategies (means).
Explain how businesses and the attractiveness of industries are evaluated using the General Electric approach.
When a firm has multiple strategic business units like PepsiCo does, it must decide what the objectives and strategies for each business are and how to allocate resources among them.
The Boston Consulting Group (BCG) matrixA portfolio planning approach that examines strategic business units based on their relative market shares and growth rates.
The BCG matrix helps managers make resource allocation decisions once different products are classified. Holding market share means the company wants to keep the producta€™s share at the same level. As competitors enter the market, technology advances, and consumer preferences change, the position of a companya€™s products in the BCG matrix is also likely to change. Another portfolio planning approach that helps a business determine whether to invest in opportunities is the General Electric (GE) approachA portfolio planning approach that examines a businessa€™ strengths and the attractiveness of industries.. Companies evaluate their strengths and the attractiveness of industries as high, medium, and low.
Although many people may think a yellow light means a€?speed up,a€? it actually means caution.
What factors are used as the basis for analyzing businesses and brands using the BCG and the GE approaches? Explain how an organization like McDonalda€™s can use licensing to create value for the brand. Discuss how conducting a SWOT (strengths, weaknesses, opportunities, threats) analysis helps a firm develop its strategic plan. Describe the value propositions the social networking sites YouTube and MySpace offer Web users. A mission statement outlines an organizationa€™s purpose and answers the question of how a company defines its business. One of the best ways to prepare yourself for conducting a SWOT analysis is to use example SWOT analyses for help and inspiration. Even if you already know what a SWOT analysis is and what it’s used for, it can be tough to translate that information and examine your own business with a critical eye. All of our SWOT analysis examples are based on real businesses that we’ve featured in our gallery of free example business plans. When you’re ready to get started on your own SWOT analysis, you can use our free SWOT analysis template (available as a PDF). Sedibeng Breweries is a medium-scale brewery located in the growing industrial centre of Selebi Phikwe, Botswana.
Botanical Bounty is an Oregon-based perennial farm that grows a variety of botanical, medicinal plants.
Botantical Bounty needs to establish its reputation as a highly-efficient, high-potency medicinal herb grower, and one effective and inexpensive way to do that would be to lean on loyal customer testimonials in the company’s marketing strategy. UPer Crust Pies is a specialty meat and fruit pie cafe in Michigan’s Upper Peninsula that sells hot, ready-to-go pies and frozen take-home options, as well as an assortment of fresh salads and beverages. Because UPer Crust Pies wants to implement such a specific marketing strategy—targeting working families by emphasizing that their dinner option is both healthy and convenient—the company should develop a marketing plan. Haley’s Vintage Hats is an online-only business that sells unique and affordable replicas of vintage designer hats. Haley’s expertise as a milliner makes her a great candidate for hiring an apprentice, or intern, and developing an apprenticeship program could help the company cheaply expand its production capacity and support the increase in sales that would come with its expanded marketing efforts. Replay Plastics recycles plastic waste into commercially viable products, using environmentally-friendly methods. A weakness that may deter investors is NovOculi’s lack of relationship with the medical device distribution community.
If you're the first person to write this article, it's a sure thing that you'll be credited as a Top Contributor. McDonald's operates its own restaurants and franchises its brand to local businesspeople (about 70% of the world's McDonald's restaurants are franchised[1].) The company experienced a dramatic turnaround in 2003, driven by a two-pronged strategy. Domestically, McDonald's continues to perform well despite a pullback in consumer spending and is even benefiting as consumers trade down from more expensive eating options. Of its 32,278 restaurants around the world as of September 30, 2009, 25,975 (80%) were franchises and 6,303 (20%) were company-operated. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales along with minimum rent payments, and initial fees.
To keep up with rapidly changing consumer preferences, demographics, and spending patterns, McDonald's has introduced new items (Premium Chicken sandwiches and the Angus Beef Burger) and campaigns to create more healthy foods (Premium Salads). To do so, McDonald's has remodeled many restaurants, kept stores open longer, and increased menu options.
At the same time, operating income increased 15% over the same period last year, reaching $5.0 billion.
McDonald's and other fast food restaurants have benefited during the economic downturn as consumers turn to lower-priced meals, though their profitable breakfast and beverage sales have slipped. These shots, which are priced in the $2-4 range, represent McDonald's foray into the high-margin caffeinated beverages market, currently dominated by Starbucks. As these consumer trends continue to shift towards the mainstream, public perception of McDonald's becomes increasingly negative. Since 2005, food prices have increased substantially, but competition has prevented McDonald's from passing costs along to customers. It is also a convenient structure around which to explain the expanding role of ICT in strengthening agricultural marketing.
Reducing costs can involve, for example, reducing transaction costs, reducing losses following the harvest, gaining better access to cheaper inputs, and increasing productivity for an overall reduction in the unit costs of production.
The overview concludes by reviewing lessons and envisaging future developments in ICTs for agricultural marketing, suggesting potential policy changes and active interventions to improve their utility. Information needs differ significantly between countries and within countries for farmers producing different products.
Price has been disseminated in many ways—chalked on notice boards, broadcast by local radio stations, published in newspapers, and (more recently) posted on websites. Agricultural applications support logistics with graphical presentations of available supplies and methods for traders to upload price and supply information directly. These priorities shift during the production cycle—for example, market information is of little interest until the start of the harvest.
It is worth bearing in mind that Ugandan farmers mainly supply commodities like coffee, whereas the Indian farmers are specialized apple producers from Kashmir. Technical advice was the most popular agricultural information service, provided via phone-in hotlines, followed by SMS-based technical and weather advice, with SMS-based market price services coming third. Circumstantial evidence suggests that market information systems have a greater effect on prices of higher-value, less-perishable products such as onions, potatoes, and pulses and a lesser effect on prices of extremely perishable products such as leaf salad. The latent utility of the technology is still being discovered, and the scale of its impact is still being understood. The private sector is finding it difficult to develop a working business model to charge farmers for agricultural information and market services delivered through ICTs. It is very likely that the optimum configuration could involve some kind of public-private arrangement.
The emergence of open-source software is facilitating the dissemination of targeted SMS messages on a large scale (see the discussion of FrontlineSMS in Module 8). In many countries, profits generated by mobile phone use in urban areas are set aside specifically for extending the mobile phone network further into rural areas. To date, disappointingly little analytical work has been done to provide empirical evidence of these effects. Given the projected acceleration of change in consumer demand, the emergence of new marketing channels, and the evolution of modern variations within traditional marketing channels, better information will help farmers align production more closely with changing demands. The evidence suggests that farmers use mobile phones to tap into a wider range of knowledge and information than they could access previously.


The additional knowledge translates into a more accurate understanding of demand and an enhanced ability to control production and manage supply chains. Farmers gain greater control over their production and product sales by finding new sources of demand, improve their ability to adjust supply and quality to market conditions, and learn about quality, grades, and product presentation. Over the longer term, a better understanding of market demand and consumer trends helps farmers diversify into higher-value crops and capture greater value. Farmers can make more informed decisions about which inputs are better or cheaper to buy and when and where to best obtain them. There is also an intriguing suggestion that farmers’ use of the phone creates a greater sense of trust with trading partners, presumably because information asymmetries are reduced. When Peru privatized its telecommunications industry in the 1990s, the government required the telecommunications company to install public telephones in 1,526 small rural towns across the nation.
In the Philippines, Labonne and Chase (2009) compared the impact of mobile phones on subsistence farmers and commercial farmers who generate a marketable surplus. A survey of a small sample of farmers in Morocco found that mobile phone use resulted in a 21 percent increase in income (Ilahiane 2007).
Farmers obtain the latest information with a phone call instead of making a long trip to a market.
Farmers’ increase their power to negotiate, particularly with traders, based on their ability to understand pricing in multiple markets, to cut out intermediaries, and to sell directly to larger-scale buyers. For example, farmers can modify the date of marketing, product permitting, or switch to alternate markets, transport and regulation permitting. Farmers communicate by phone with traders and farmers outside of their immediate geography as opposed to making a physical trip. Farmers can become better managers through better information about which inputs to use, new knowledge about grades and standards for produce, and increased interaction with corporations, traders, and other farmers. Without market access, productivity is low (Kunaka 2010), and options for the farming enterprise are limited. It can create benefits, especially for poorer urban consumers, by lowering the costs of food. The resulting improvement in logistics can be seen through lower transaction costs, improved potential profits, and less wastage.
Traders use the quantity and variety of products and the mobile phone network to conduct real-time research and identify arbitrage and market opportunities for the products they buy directly in rural areas.
The logistics system will not be fully transformed and smallholders will not fully benefit from the ICTs described here until the technology is ubiquitous and market information is less asymmetrical. Most farmers need transport to move small loads (units under 80 kilograms) over relatively short distances (of 1–10kilometers).
One particular feature of rural transport internationally is the high costs in Africa, which are often four times the cost in South Asia of transporting larger loads over longer distances. Little research has been done to assess the direct impact of mobile phones on reducing transaction costs related to agriculture. Suppliers can use mobile phones to conduct real-time market research, and entire truckloads can be bought and sold while still on the road.
The benefits largely reside with traders, who use the technology to maximize profits by lowering search and transaction costs.
Despite phenomenal growth in telephone lines and mobile phone networks, access is still highly inadequate and unequal. Investments that help to remove intermediaries are believed to have good potential for improving marketing efficiencies and lowering transaction costs. Coordinated activities by farmer groups offer potential for improving opportunities and farmer incomes through many channels—in operating the market, in actively being empowered to seek out competing transport options, and in organizing (through mobile phones) sensible collection routes that ease logistics, create the necessary critical mass of products, and attract larger-scale and more efficient buyers and traders.
The situations of these producers may be quite different, but the catalyst in each instance was the advent of mobile phones. When they visited the nearby market town, they were shocked to discover that chickens were selling for nearly twice the price they were receiving.
He explained that he could not afford to pay them more because he had to cover all his transport costs with the few (normally 8–10) chickens they had available for sale.
Deeper investigation revealed that only a small proportion of the haats were booming (about 13 percent) They had developed into daily wholesale markets selling tens of thousands of tons of product.
The markets were booming owing to investments in new rural roads, expanded vegetable production following increased investment in irrigation, and the arrival of larger-scale truckers (with 10-ton vehicles) to buy product.
The four vegetables that were most heavily traded (by volume) were considered in the study: tomatoes, onions, eggplant, and chilies. On average, a farmer made 24 visits to the wholesale market during the crop cycle at an average cost of US$ 2 per visit, which included travel, food, and related costs. These costs are particularly high in commodity chains that are geographically extensive and organizationally complex, such as the onion trade in Ghana. The phone also gives wholesalers greater access to their customers, which helps them to build trust and a good reputation.
Using panel data from 856 households in 94 communities across the country, Muto and Yamano (2009) estimated the impact of mobile phones on farmers’ market participation.
Mobile phone coverage was associated with a 20 percent increase in sales of bananas, although the same was not true for maize.
The expanded mobile phone network favored banana farmers in remote areas, who tend to have lower production costs, compared to banana farmers near district centers, where production costs were higher.
Supplying these outlets offered farmers higher incomes and more stable demand but required farmers to make significant improvements in product quality, quantity, and business management (Kaganzi et al. The phone facilitated collection, delivery, and the fine-tuning of harvesting and dispatch to match demand in Kampala. For example, Karaya gum producers have a contract to supply local exporters, but exporters claim that they do not know how much stock is available and so cannot carry enough cash to pay farmers at the sale point. Exporters can optimize their collection logistics, more accurately estimate cash requirements, and save money on transport.
Most often, short-term information improves price negotiation, but it can also influence the timing of sales and the selection of the market. Examples of these decisions include the choice of product to produce, the choice of marketing channel to use, and other strategic decisions aimed at maximizing profits.
Profitability is highly affected by prices, largely because any change in price has little or no effect on costs, so the effect impacts directly on the bottom line.
A deeper understanding of short-term and long-term market dynamics should, on balance, enable farmers to become more commercially savvy and profitable.
In most situations, market information is fragmented, anecdotal, outdated, inconsistent, and incomplete, although the situation differs by product. An equally important role for government is to support producers in using the technology to become more commercially astute and better attuned to changing markets for agricultural products. Their market information will come from a neighboring farmer who may have visited a market on the previous day. This information should include the trading patterns, goals, and preferences of those that one is negotiating with. Some take the view that if telephone infrastructure is provided, stakeholders will find a way to use the technology for gathering the price and market information that they need.
The public sector in different countries has invested in its own market information systems. Analysis of price data sets frequently reveals disturbing gaps or suspicious similarities in prices from day to day. Not only did farmers need agricultural market information to plan production and marketing, but market participants needed the information to arrive at optimal trading decisions. The operating budget is some US$ 900,000 per year (which does not include enumerators’ salaries but does cover the US$ 11 monthly bonus if 20 daily reports are submitted).
They are graduates in the 35–44 age group, who are mainly academics or work for agriculture-based companies. Despite these challenges, there is major potential for government-provided ICT services to improve as resources become available, infrastructure expands, and technological learning becomes more widespread.
This technology offers the prospect of delivering market price information directly to farmers’ mobile phones and thus empowering farmers to understand the value of their products and immediately firm up their negotiation positions.
They use their own enumerators, whose employment depends on the accuracy of their price reporting. Partnership with the private sector helps to overcome some of the public sector’s challenges in gathering and disseminating accurate market data. To do so, the department must build its own producer database, including information on producers’ locations, key enterprises, farm sizes, and so forth, and negotiate with mobile phone companies to obtain SMS prices that more accurately reflect the actual cost of sending SMS messages. The purpose of market intelligence is to improve farmers’ understanding of changes in agricultural marketing and demand so that they can adjust their plans and production more closely to changing circumstances and generate the highest value. Founded on principles of consistency, homogeneity, and ease of preparation, the ubiquitous golden arches would seem the most boring dining option in an exotic destination.
Bits of bacon are suspended in a gooey substrate reminiscent of potatoes, but not quite there. In the Philippines, homegrown fast food chain Jollibee is the main draw for a quick bite, offering burgers alongside spaghetti and fried chicken. It comes as no surprise, then, that McDonald’s Japan has released a whole slew of unique burgers, adapted to more refined, adult Japanese tastes. Beef and pork were eliminated from the menu and chicken and vegetable offerings were upped substantially. Makes us wonder how long it’ll be before people start figuring out that they could make this stuff at home.
Whereas the original Big Mac was conceived when somebody decided it would be a good idea to add more bread to their burger, the Mega Mac took form when somebody decided to add more meat. The Tamago Double Mac dresses up the egg and beef with bacon slices and a thick, almost-tartar sauce. Just like in the rest of the Middle East, flatbread and wraps take up a large part of the menu. The  classic New England and eastern Canadian lobster rolls that the McLobster imitates were never considered haute cuisine in the first place. This breakfast item takes its cue from spam musubi, a traditional Hawaiian-Japanese fusion dish consisting of a slice of spam atop a block of rice, held in place by a strip of seaweed.
Little raviolis filled with cheese and vegetables are served alongside an Italian pasta sauce (aka: dressed up ketchup) for dipping.
The Sausage and Egg Twisty Pasta is bizarre for its use of pasta (a McDonald’s rarity) as well as its placement on the breakfast menu. When I was in Japan I noticed that the Japanese liked to drink coffee with their burgers rather than soda. See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed.
Organizations typically develop plans and strategies that outline how they want to go about this process. Individuals and organizations both must develop long-term (longer than a year) strategic plans, match their strengths and resources to available opportunities, and adjust their plans to changing circumstances as necessary.
For example, when youa€™re exploring your vacation options, you want to know the benefits of each destination and the value you will get by going to each place. In other words, why does a Beaches resort provide more value to vacationing families than do other resorts? Target markets will be discussed in more detail in Chapter 5 "Market Segmenting, Targeting, and Positioning".
Create a value proposition for yourself that you may use as your thirty-second a€?elevator speecha€? to get the company interested in hiring you or talking to you more. The SBUs at the business level must also be consistent with and help an organization achieve its corporate level objectives. For example, the new Aquafina bottle uses less plastic and has a smaller label, which helps the environment by reducing the amount of waste.
However, the basic components of the strategic planning process are the same at each of the different levels.
Perhaps your strengths include strong leadership abilities and communication skills, whereas your weaknesses include a lack of organization. Internal factors such as strengths and weaknesses are specific to a company or individual, whereas external factors such as opportunities and threats affect multiple individuals and organizations in the marketplace.
Once companies determine their strengths, they can use those strengths to capitalize on opportunities and develop their competitive advantage.
Especially in foreign markets, the loyalty of a firma€™s employees can be a major strength, which can provide it with a competitive advantage. When organizations assess their internal environments, they must look at factors such as performance and costs as well as brand awareness and location.
For example, government regulations on food packaging will affect PepsiCo but not Goodyear.
Michael Porter, a professor at Harvard University and a leading authority on competitive strategy, developed an approach for analyzing industries. Doing so helps the firm figure out how much money a competitor may be able to spend on things such as research, new product development, promotion, and new locations. For example, because buyers are consuming fewer soft drinks these days, companies such as Coke and Pepsi have had to develop new, substitute offerings such as vitamin water and sports drinks. Companies everywhere are finding that no matter what they make, numerous firms around the world are producing the same a€?widgeta€? or a similar offering (substitute) and are eager to compete with them.
Different government agencies enforce the numerous regulations that have been established to protect both consumers and businesses. Food and Drug Administration prohibits companies from using unacceptable levels of lead in toys and other household objects, such as utensils and furniture. Economic factors include variables such as inflation, unemployment, interest rates, and whether the economy is in a growth period or a recession. Consumers who can afford luxury goods may continue to buy them, while consumers with lower incomes tend to become more value conscious. Today, many firms are doing more to engage in a€?sustainablea€? practices that help protect the environment and conserve natural resources.
Using Portera€™s five forces model, explain what you need to consider with regard to each force. Although many organizations publish their mission statements, most for-profit companies do not publish their objectives. An example of a marketing objective for PepsiCo might be a€?to increase by 4 percent the market share of Gatorade by the end of the year.a€? The way firms analyze their different divisions or businesses will be discussed later in the chapter.
For example, in addition to pursuing a low cost strategy (selling products inexpensively), Walmart has simultaneously pursued a strategy of opening new stores rapidly around the world.
The purpose of the plan is to influence executives, suppliers, distributors, and other important stakeholders of the firm so they will invest money, time, and effort to ensure the plan is a success. Many companies, including PepsiCo and Hyundai, have entereda€”and been successful ina€”rapidly emerging markets such as Russia, China, and India. Licensing is a popular strategy, but firms must figure out how to protect their interests if the licensee decides to open its own business and void the license agreement. A group of businesses can be considered a portfolioA group of business units owned by a single firm., just as a collection of artwork or investments compose a portfolio.
The same question or problem arises when a product has a low share of a high-growth market. When a firm pursues this strategy, it only invests what it has to in order to maintain the producta€™s market share. The company has to continually evaluate the situation and adjust its investments and product promotion strategies accordingly.
The GE approach examines a businessa€™s strengths and the attractiveness of the industry in which it competes. The firms then determine their investment strategies based on how well the two correlate with one another. Companies with a medium rating on industry attractiveness and business strengths should be cautious when investing and attempt to hold the market share they have. Organizations that have multiple business units must decide how to allocate resources to them and decide what objectives and strategies are feasible for them.
Include your value proposition, targeted organizations, objectives, strategies, and the internal and external factors that may affect your plans. Write a value proposition emphasizing why you are the best candidate for the position relative to other recent college graduates. Identify and explain the product market or market development strategies Mars pursued when it introduced personalized M&Ms. Come up with as many real-world examples as you can of companies that pursued market penetration, market development, product development, or diversification strategies.
Reading an example SWOT analysis for a business that is either in your industry or based on a comparable business model can help get you started.
Their product is traditionally-brewed craft beer, targeted at white collar and working class Batswana alike. Use of the internet is only growing, so ignoring this weakness for too long could have disastrous consequences.
This is one area in which being a small local firm could be a major advantage for Sedibeng, but international market research and more information about the government export initiatives are required. This family-owned farm has been in existence for two years, initially operating as a hobby for the owners—who have training in plant biology—rather than as a profit-producing business. Botanical Bounty also needs to establish a strong sales channel with herbal supplement manufacturers, and should invest plenty of energy into building those relationships and establishing Botanical Bounty as a reliable vendor.
The company is planning to open its first location in downtown Yubetchatown, and is very focused on developing a business model that will make it easy to expand quickly and that opens up the possibility of franchising.
Funding a new business can take time, and the sooner UPer Crust Pies gets started on this process, the better.
Funding a new venture can take time, and because it’s the step one of the long road to revenue—they must secure funding before they begin construction, and they must complete construction before they can begin revenue-generating recycling operations and packaging material production—time is of the essence.
Specifically, because NovOculi is seeking equity investments, the company needs to look into venture capital funding and angel investments. A great idea is worth nothing if it can’t be implemented well, and a key to implementation in this case is a strong sales and distribution channel.
Online business planning software makes it easier than ever before to put together a business plan for your business. It’s a knowledgable guide combined with a professional designer coupled with a financial wizard.
Revenues from restaurants licensed to affiliates and developmental licensees include royalties based on a percent of sales, and generally include initial fees. The strategy reflects the philosophy that novelty, as opposed to loyalty to traditional products, is the key determinant of sales in the fast food industry. In Asia, the general management has indicated that there is significant potential in the Chinese market.
By tapping into a growing global middle class, the company's international operations have consistently posted strong same-store sales growth. These changes may climax in lawsuits or media publications like Super Size Me, which criticizes McDonald’s products for causing obesity, and Fast Food Nation, which decries McDonald's business practices. As foreign currencies strengthen relative to the dollar, goods sold in foreign markets are suddenly worth more dollars back in the US, boosting earnings. Improving prices can involve, for example, gaining a stronger negotiating position, exploring alternative markets, or making better decisions on where and when to sell product. Farmers differ in their perceptions of the information they require (as revealed by market research) and in their priorities when they come to access information.
Farmers give more credibility to information provided by other farmers considered to have a similar status and cultural profile. In the main, the information has been well received by farming clients, with good reports on its quality, accuracy, and timeliness and positive evaluations of its impact. In practice, when a subscription-based agricultural information service was rolled out, farmers claimed that the market news service was the most valuable. For market information, these farmers rely very little on the Internet but turn to multiple other sources, including farmer organizations, other farmers, newspapers, radio, TV, and short messaging service (SMS) and voice services. There is some evidence that consumer prices can be lowered; it is also clear that traders who have access to ICT and mobile phones can raise their margins. Some governments are interested in purchasing SMS-based agricultural information services, either to empower their field extension officers or to provide holistic agricultural information services directly to farmers.
For example, the collection and analysis of information could be outsourced to the private sector, which could use such a platform to create additional value-added services for the network of businesses and institutions that support the farming sector.
Agricultural line departments and projects are using this technology to better control and improve their agricultural information dissemination. Learning to exploit the economic benefits of the mobile phone is a skill that takes some time to develop (see the evidence from Malaysia later in this section).
Farmers build up a network of contacts and draw on this wider experience and expertise to obtain critical information more rapidly. They can organize and coordinate among themselves and (larger-scale) truckers to consolidate volume.
It also enhances farmers’ ability to change the time and place of marketing to capture a better price. Some years later, a study of 1,000 rural households distributed across towns with and without public telephones found positive links between public telephone use and incomes.
The study found little benefit for the subsistence farmers, but commercial farmers benefited significantly, as measured by improvements in their consumption of 11–17 percent. They can coordinate with other local farmers to use one large truck rather than several smaller ones to deliver their products.
The ability to communicate more easily and to triangulate information creates deeper trust in key trading relationships. They can identify sources of inputs, obtain them more cheaply, and are better able to buy and apply them at the optimal times. At that point, prices and the returns realized by farmers are likely to improve, as well as the downstream positive effects on consumer food prices. Very small volumes of the produce are then sold to a local aggregator, who perhaps collects it on a bicycle or bullock cart. In addition, each small-scale trader has to charge a relatively high margin per kilogram to make a living wage. Rarely are motorized transport services available, affordable, or even necessary to meet this demand, particularly in sub-Saharan Africa. One solution to this conundrum is to aggregate product into sensible critical masses at particular times and places. Some of this difference in cost is ascribed to the cost of vehicles and poor quality of roads in Africa, but a significant proportion is believed to be the consequence of cartels.
The lack of information is not surprising, given that logistics is generally regarded as an infrastructural issue and that its synergies with ICT have not been considered. Today, the main beneficiaries of ICTs are those who have the technology, enabling them to increase their profits.
Studies in South America have demonstrated synergies between investments in roads, telephones, and electricity, although individually telephones consistently show the highest return (Jansen, Morley, and Torero 2007).
As this topic note emphasizes, ICT will increasingly provide avenues to link producer organizations, cooperatives, smaller transporters, and others. They agreed that they would be prepared to consolidate their chickens and transport them for sale directly into the market town. The total search cost for a farmer averaged US$ 52, of which over 80 percent was the cost of travel. This difference suggests that expanding mobile phone coverage has been more useful for perishable crops and that farmers have gained particularly from being able to arrange transportation more efficiently. The results also suggested that even households without mobile phones benefited from the network, possibly because traders used mobile phones to reduce transportation costs. Demand for specific products fluctuates daily and weekly; longer-term trends in consumer demand vary as well. This kind of information tends to change rapidly, and its timeliness and accuracy is of great importance.
To be made well, these kinds of decisions require an understanding of competing suppliers, buyers’ needs, product specifications, market trends, and other key issues for specific products.
For example, markets for staple cereals, which are often subject to price controls, move relatively slowly.
A trader’s core skill is to read the market, assess supply and demand, and compute how these factors might affect price.
Groups provided with more information in advance achieved more effective and efficient outcomes as well as higher levels of satisfaction with the negotiation. About 70 percent of rice growers and 30 percent of potato growers contact multiple traders by phone to explore selling opportunities and prices, and about 60 percent will agree on the details of the trading deal over the phone.
To negotiate from a position of strength, the farmer would phone a colleague in the Moscow market to establish wholesale prices and make some estimates of supply.
Because farmers could identify the best markets for selling their catch, price volatility was reduced, wastage was significantly lower, fishermen achieved higher average prices, and consumer prices fell. Fishermen, unlike most farmers, have their own transport, but they may not have information about where it is best for them to transport their fish for sale. As shown in the previous discussion, farmers in Georgia used market information to strengthen their negotiating position, whereas in Kerala fishermen used market information to switch to alternative markets. It is claimed that outreach to farmers has not happened because of inadequate infrastructure (computers and networking), coupled with a lack of manpower and trained personnel in rural areas. If governments do venture into this territory, a key issue will be the unit price of each SMS message (as discussed in the overview). Under outsourcing arrangements, for example, governments may purchase SMS-based agricultural information for extension agents to distribute or for direct distribution to farmers.
The figures show projected increases in consumer expenditure on food over the longer term in India.
A Big Mac in Belgium, secret sauce in the Sahara, or a McRib on the Rhine don’t sound like the best ways to experience new locales. For 120 yen (a little over a dollar), it’s hard to pass on this hearty harbinger of menus to come. Since the Japanese, other countries’ franchises have taken heed and added shrimp burgers to their menus. South Africans like it, as do patrons in Hong Kong and various other countries around the world. Weighing in at 510 calories, with 30 grams of fat (17 of them saturated) and 1,070mg of sodium, the My Poutine clearly delivers the goods. You may also download a PDF copy of this book (14 MB) or just this chapter (2 MB), suitable for printing or most e-readers, or a .zip file containing this book's HTML files (for use in a web browser offline). Such a plan must take into account a companya€™s current internal conditions, such as its resources, capabilities, technology, and so forth.
Before you (or a firm) can develop a strategy or create a strategic plan, you first have to develop a value proposition. For now, be aware that companies sometimes develop different value propositions for different target markets. In the case of our sales consulting firm, the strategies it develops must help clients improve their sales by 30a€“50 percent.
The value proposition shows why the product or service is superior to competing offers and why the customer should buy it or why a firm should hire you. For example, if a company wants to increase its profits at the corporate level and owns multiple business units, each unit might develop strategic plans to increase its own profits and thereby the firma€™s profits as a whole. To support PepsiCoa€™s overall corporate strategy, all three business units must develop strategic plans to profitably produce offerings while demonstrating that they are committed to society and the environment.
However, if a company has multiple planning levels, the plans must be consistent, and all must help achieve the overall goals of the corporation. A situation analysis involves analyzing both the external (outside the organization) and the internal (company) environments, as Figure 2.5 "The Strategic Planning Process" shows. For example, an organizationa€™s strengths might include its brand name, efficient distribution network, reputation for great service, and strong financial position. Opportunities for you might exist in specific careers and industries; however, the economy and other people competing for the same position might be threats. For example, if you are doing a situation analysis on PepsiCo and are looking at the weak economy, take PepsiCo out of the picture and see what factors remain. Loyal and knowledgeable employees are easier to train and tend to develop better relationships with customers.
Managers need to examine both the past and current strategies of their firms and determine what strategies succeeded and which ones failed.
Was it the instructora€™s fault, the strategy you used to study, or did you decide not to study? Other external factors include cultural and social trends, political and legal regulations, technological changes, and the price and availability of natural resources. Similarly, students getting a business degree dona€™t need to focus on job opportunities for registered nurses. Coke and Pepsi are direct competitors in the soft drink industry, Hilton and Sheraton are competitors in the hospitality industry, and organizations such as United Way and the American Cancer Society compete for resources in the nonprofit sector. Competitive analysis involves looking at any information (annual reports, financial statements, news stories, observation details obtained on visits, etc.) available on competitors. Also, sometimes suppliers see how lucrative their customersa€™ markets are and decide to enter them. For example, suppose you are opening up a new factory because you cannot keep up with the demand for your products. Inflation occurs when the cost of living continues to rise, eroding the purchasing power of money.
Other goods and services, such as products sold in traditional department stores, may suffer. Consumers in this group and other diverse groups prefer different types of products and brands.
Self-scanners and video displays at stores, ATMs, the Internet, and mobile phones are a few examples of how technology is affecting businesses and consumers. Green marketingMarketing environmentally safe products and services in a way that is good for the environment.
Both profit and nonprofit organizations have mission statements, which they often publicize. In addition to being accomplished within a certain time frame, objectives should be realistic (achievable) and be measurable, if possible. Accomplishments at each level of the organization have helped PepsiCo meet its corporate objectives over the course of the past few years.
Successful strategies help organizations establish and maintain a competitive advantage that competitors cannot imitate easily.
Many companies develop marketing strategies as part of their general, overall business plans. Companies often offer consumers special promotions or low prices to increase their usage and encourage them to buy products. A new product can be a totally new innovation, an improved product, or a product with enhanced value, such as one with a new feature.
Exporting, licensing, franchising, joint ventures, and direct investment are methods that companies use to enter international markets. As Figure 2.12 "Product and Market Entry Strategies" shows, there are different ways, or strategies, by which firms can enter international markets.
The French luggage and handbag maker Louis Vuitton faced this problem when it entered China.
Franchisees pay a fee for the franchise and must adhere to certain standards; however, they benefit from the advertising and brand recognition the franchising company provides.
The manufacturers are provided specifications for the products, which are then manufactured and sold on behalf of the company that contracted the manufacturing. For example, In Bev, the Dutch maker of Becka€™s beer, was able to capture market share in the United States by purchasing St. Firms that have little experience with different markets or different products often diversify their product lines by acquiring other companies.


In order to evaluate each business, companies sometimes utilize whata€™s called a portfolio planning approach. Managers classify these products as question marks or problem childrenBusinesses or offerings with a low share of a high-growth market.. One strategy is to build market share for a business or product, especially a product that might become a star.
The firm must also keep in mind that the BCG matrix is just one planning approach and that other variables can affect the success of products.
As we have indicated, a businessa€™ strengths are factors internal to the company, including strong human resources capabilities (talented personnel), strong technical capabilities, and the fact that the firm holds a large share of the market. As Figure 2.16 "The General Electric (GE) Approach" shows, the investment options outlined in the GE approach can be compared to a traffic light.
If a company rates itself high on business strengths and the industry is very attractive (also rated high), this is comparable to a green light. Personally, I recommend reading at least three—since they are prioritized lists, SWOT analyses are by nature pretty short, and the more examples you look at the more likely you are to spot ideas that are relevant to your own business needs. A strong grand opening will help establish the store’s reputation, so it is essential that the UPer Crust Pies team feels ready for its first day. She operates Haley’s Vintage Hats through an Etsy storefront and hopes that it will become successful enough that she can quit her other job and run her dream company full-time. Haley can also teach herself by exploring free online marketing resources on Etsy, Bplans, and elsewhere. The recycled material from the PET plant will then be channeled into a brand-new Replay Plastics Packaging Division, which will produce extruded sheet plastic to sell to manufacturers. Luckily they have already written their business plan, which is often required by prospective lenders and investors. NovOculi employs a method involving iontophoresis, an ionic dye, and a wavelength-specific laser to accomplish effective refraction without the troublesome destruction of epithelium. NovOculi is going to have to figure out how to build relationships with medical device distributors, whether that means attending expensive industry conferences, leveraging research relationship with institutions like Stanford University, or developing incentives for the distributors. Internationally, McDonald's expanded aggressively, opting to franchise rather than operate its new locations, providing new income with little overhead. A growing global middle class, particularly in emerging markets like China, India, and Latin America, represents a massive opportunity for McDonald's. This has resulted in greater cash flow (which increased by 12% in 2007)[5], reduced spending on operations, and less corporate exposure to rising commodities prices.
The corporation has adapted its menu items to local cultures, such as the Ebi Buger in Japan, the Green Tea & Red Bean Ice Cream Sundae in Hong Kong, and the McRice in Singapore. Since McDonald's is the most recognized brand name in the fast food industry, these negative publicity events have widespread impact on its brand equity. The QSR segment and FFHR category are extremely competitive because each FFHR restaurant offers similar menus and prices. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy.
ICTs are used for real-time market research to obtain current information and help users gradually accumulate market knowledge and insight. The primary message underlying these disparities appears to be that farmers require a package of information and that their needs and priorities change throughout the production cycle. To the extent that these sites become more accessible, their usefulness could increase, but at present they are out of reach for most rural people. There are weaknesses in price gathering, as there are few incentives for accuracy or for working outside office hours. The content can consist of technical, marketing, weather, costing, pest, and disease alerts as well as information on government schemes.
Another option is for the agricultural department to create a database of farming clients and negotiate lower SMS costs.
In particular, this new technology should help eliminate the recognized weaknesses in dissemination by government-run market information services. This module provides a broad swathe of empirical evidence of the benefits of phone technology for improving rural income and, potentially at least, for reducing transaction costs and thus consumer prices.
They are likely to be important for informing better investment decisions on infrastructure, particularly at the nexus between investments in roads, markets, and communications technology. Younger users are typically better able to exploit the mobile phone’s business advantages. Essentially the mobile phone, its special applications, and the Internet (although to a lesser extent currently) are becoming management tools for farmers, specifically in relation to marketing. More than half concluded selling arrangements and prices on the phone (the exception was rice farmers in China).
Greater coordination also occurs around the timing of aggregation, collection, and volumes.
Telephone use resulted in a 13 percent increase in per capita farm income and a 32 percent lift in nonfarm income (Chong, Galdo, and Torero 2005).
A particularly interesting finding was that farmers reported improved relationships with trading partners following the acquisition of mobile phones. Other benefits, such as market information, time savings, and technology, were of a lower order (figure 9.4). Mobile phones were also associated with a 3.5 percent reduction in average consumer grain prices. Farmers changed where they marketed their crops, switching markets to capture better prices and often resorting to larger and more distant markets. First, ICT potentially has an impact on the management of every step in the production marketing chain, from planning to sales. Despite these positive impacts, other factors can still limit increased supply-chain efficiency, such as geographic position, limited access to transportation and credit, and poor access to inputs. This intermediary then sells the aggregated (but still small) volume to another intermediary, perhaps one with a tractor. For example, a 10-ton (medium) load would need to be made up of product from 150 to 200 smaller-scale farmers, a process that is being greatly facilitated by the use of ICT, especially mobile phones.
Little empirical evidence is available on the scale of these effects or on the practices and investments that could enhance them. Not only are the poor and those living in rural areas at a disadvantage, but full utilization of the technology is impossible, even for those with access, until universal access is achieved. Integrated rural infrastructure investments could include, for example, investments that improve agricultural productivity, rural roads, and rural markets (specifically assembly or primary wholesale markets) and extend rural mobile phone coverage.
Before committing to this action, however, they wanted to confront the trader with their increased market knowledge. Manobi claims that as a result gum producers have increased their sales income by 40–50 percent (Annerose 2010). Generally these decisions also build on the aggregate knowledge created through the acquisition of short-term market information over a period of time. These findings reaffirm the findings from the Philippines discussed earlier in this module, where farmers reported feeling increased trust in their trading partners after farmers had gained access to mobile phones.
These findings explain and lend further weight to the findings presented earlier (for example, from Morocco, Malaysia, and the Philippines) on how the use of phones appears to increase farmers’ incomes and profits. From experience, the farmer had good estimates of transport costs from Georgia to Moscow and of the typical margin the trader achieves.
By using their mobile phones, they can seek out nearby undersupplied beach auctions and deliver their fish directly to markets where supply is low and prices correspondingly high. Producers also use market information to decide when to harvest produce or, if possible, where to store it until they can sell it at higher prices. The information is rarely used except to give a general sense of the broad changes in product prices, and often it arrives so late that it services only for retrospective analysis by academics.
Though still useful for broader economic growth, the ICT scheme has not yet reached those targeted in the outset of the intervention. In the future, smartphones might make Internet-based dissemination more effective, especially for interventions that seek to expand market intelligence (see the innovative practice summaries). In the service operated by Reuters Market Light, evidence indicates that the information is further distributed by recipients to 5–12 others. Using the platform created to generate income by selling targeted messaging is a role that can be outsourced. They are based on a combination of income elasticities for various food categories, the impact of urbanization, population increases, and a projected annual growth rate of 5.5 percent in GDP. But the fact remains: wherever you go, Ronald McDonald and his cronies will probably be there, hawking burgers, fries, and nuggets with astounding aplomb. Well, for one thing it turns out that the fast food chain sometimes does break the mold to accommodate local tastes and standards.
The plan must also take into account conditions in the external environment, such as the economy, competitors, and government regulations that could affect what the firm wants to do. A value propositionA statement that summarizes the key benefits or value for target customers.
The value proposition tells each group of customers why they should buy a product or service, vacation to a particular destination, donate to an organization, and so forth. Likewise, if a companya€™s value proposition states that the firm is the largest retailer in the region with the most stores and best product selection, opening stores or increasing the firma€™s inventory might be a key part of the companya€™s strategy. In large organizations, strategic planning is likely to occur at a number of different levels.
An overview of the marketing (or functional) plan is presented briefly at the end of this chapter but will be discussed in detail in Chapter 16 "The Marketing Plan" so you can see how the information discussed throughout the text may be used in developing a marketing plan. At the functional level, a firma€™s marketing department might develop strategic plans to increase sales and the market share of the firma€™s most profitable products, which will increase profits at the business level and help the corporationa€™s profitability.
The firma€™s internal environmenta€”such as its financial resources, technological resources, and the capabilities of its personnel and their performancea€”has to be examined. A firma€™s weaknesses might include lack of awareness of its products in the marketplace, a lack of human resources talent, and a poor location.
Moreover, what is a strength for one person (say, strong accounting skills) might be a weakness for another person (poor accounting skills). These brands are also designed to contribute to PepsiCoa€™s environmental and social responsibilities. This helps a company plan its future actions and improves the odds they will be successful.
See which strategies work best for you and perhaps try the same type of strategies for future exams. However, hotels must also consider other options that people have when selecting a place to stay, such as hostels, dorms, bed and breakfasts, or rental homes.
Mystery shoppersA person who is paid to shop at a firma€™s establishment or one of its competitorsa€™ to observe the level of service, cleanliness of the facility, and so forth, and report his or her findings to the firm., or people who act like customers, might visit competitors to learn about their customer service and their products.
When you select a hamburger fast-food chain, you also had the option of substitutes such as getting food at the grocery or going to a pizza place.
Buyers, who are the focus of marketing and strategic plans, must also be considered because they have bargaining power and must be satisfied. The Internet has made it easier than ever for customers to find products and services and for workers to find the best jobs available, even if they are abroad.
If you are considering opening the factory in France (perhaps because the demand in Europe for your product is strong), you need to know that it is illegal for employees in that country to work more than thirty-five hours per week.
When this happens, you and other consumers and businesses need more money to purchase goods and services. More women are working, which has led to a rise in the demand for services such as house cleaning and daycare.
PepsiCoa€™s business units (divisions) have increased the number of their facilities to grow their brands and enter new markets. PepsiCo attempts to sustain its competitive advantage by constantly developing new products and innovations, including a€?mega brands,a€? which are eighteen individual brands that generate over $1 billion in sales each. When Frito-Lay distributes money-saving coupons to customers or offers them discounts to buy multiple packages of snacks, the company is utilizing a penetration strategy.
Cell phones that allow consumers to charge purchases with the phone or take pictures are examples of a product with enhanced value.
Competitors started illegally putting the Louis Vuitton logo on different products, which cut into Louis Vuittona€™s profits.
Contract manufacturing may provide tax incentives and may be more profitable than manufacturing the products in the home country. Some countries such as China often require companies to form a joint venture with a domestic firm in order to enter the market. Diversification can be profitable, but it can also be risky if a company does not have the expertise or resources it needs to successfully implement the strategy. The different product market strategies firms pursue include market penetration, product development, market development, and diversification. A portfolio planning approachAn approach to analyzing various businesses relative to one another. Because the BCG matrix assumes that profitability and market share are highly related, it is a useful approach for making business and investment decisions. To maintain the growth of their star products, a company may have to invest money to improve them and how they are distributed as well as promote them. They must decide whether to invest in them and hope they become stars or gradually eliminate or sell them. Many companies invest in question marks because market share is available for them to capture.
The attractiveness of an industry can include aspects such as whether or not there is a great deal of growth in the industry, whether the profits earned by the firms competing within it are high or low, and whether or not it is difficult to enter the market. For example, if a company feels that it does not have the business strengths to compete in an industry and that the industry is not attractive, this will result in a low rating, which is comparable to a red light. McDonald's aggressive efforts to expand its global presence - most notably at the 2008 Beijing Summer Olympics - have produced strong comparable sales and profit growth. In FY 2007, McDonald's launched the breakfast menu, extended store hours to 24 hours in major cities, and implemented drive-thru in China in its efforts to capitalize on this huge market[21]. Furthermore, because there are many alternatives to fast food (such as cheap dine-in restaurants, street vendors and convenience stores), the corporation's sales depend on its ability to maintain its brand name and attract new customers. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. The major criticism has been that the information does not reach farmers on time, if at all. SMS-based services are likely to cost considerably less than sending out mobile extension officers and be more accessible than Internet-based services (Click here for box 9.2. This platform can be used to deliver a fast, targeted, and holistic package of information services consisting of public-good information and also private-sector messages to the farming community.
The prices charged for sending SMS messages differ hugely from country to country and region to region. In occasional instances, technologies such as mobile phone amplifiers and transmitters, focused on marketplaces, will extend the distance over which wireless signals can travel and encourage additional agricultural trade to emerge. Given accelerating urbanization and the increasing emphasis on food security, the development sector needs a better understanding of how to ensure that the reductions in transaction costs that are possible along the agricultural marketing chain especially benefit those at both ends of the supply chain—the rural producers and urban consumers.
They may believe that the relationship is more fair, since they now can negotiate better terms.
The overall impact was an increase in businesses profits, especially after the entrepreneurs had used their mobile phones for more than two years.
They coordinated with local truckers to improve product transport and identify where to deliver their products. The resulting multiple handlings also cause significant wastage through loss or spoilage, further impacting the price that the smallholder receives and the consumer pays. In other words, a full transformation of the logistics system will not happen until the technology becomes ubiquitous, intensifying competition and carrying the potential long-term benefits of reducing transaction costs. For example, in areas where phone signals are weak, a mobile phone amplifier, located at a market, would facilitate conversations and flows of information around market opportunities and needs, logistics, and prices. The key development challenge lies in assembling and disseminating this information in a timely manner, not just to traders or larger-scale farmers but also to smallholders so that they can make more sensible management decisions and increase their profitability. However, for products that are more perishable or for which consumer demand is shifting, the market situation is far more opaque. Given the opportunity, traders will exploit farmers’ relative ignorance to buy low and, ideally, sell high.
Using these figures, the farmer arrived at a sensible estimate of the price he was likely to receive, and he used this information as the basis of his opening offer.
In addition, government market information has been mainly posted on Internet sites to which small-scale farmers have almost no access (box 9.4). Per capita cereal consumption is projected to be flat, and growth in demand for cereals is forecast to be broadly in line with population growth.
The sharpness of the cheddar goes well with the savory soy sauce, and the bun makes it an all around robust burger.
It explains why customers should buy a product, why stakeholders should donate, or why prospective employees may want to work for an organization. Think about if you were to ask your parents for money to go on an overseas trip or study abroad program.
Both business level and functional plans should help the firm increase its profits, so that the companya€™s corporate level strategic objectives can be met. It is also critical to examine the external environment the firm faces, such as the economy and its competitors.
Opportunities and threats are factors that are external to the firm and largely uncontrollable. Even if PepsiCo hadna€™t been around in 2008a€“2009, the weak economy reduced consumer spending and affected a lot of companies. For example, a company might look at packaging that worked very well for a product and use the same type of packaging for new products. When firms globalize, analyzing the environment becomes more complex because they must examine the external environment in each country in which they do business. Imagine going to a competitora€™s restaurant and studying the menu and the prices and watching customers to see what items are popular and then changing your menu to better compete.
If a buyer is large enough, and doesna€™t purchase a product or service, it can affect a selling companya€™s performance. The regulations related to the act are enforced by the Federal Trade Commission (FTC), which also regulates deceptive advertising. The economic downturn that began in 2008 affected consumers and businesses at all levels worldwide. As a result, marketers have begun allocating more of their promotion budgets to online ads and mobile marketing and not just to traditional print media such as newspapers and magazines. Water shortages often occur in the summer months, so many restaurants now only serve patrons water upon request. Once a company has analyzed its internal and external environments, managers can begin to decide which strategies are best, given the firma€™s mission statement. You have probably set objectives for yourself that you want to achieve in a given time frame.
PepsiCoa€™s beverage and snack units have gained market share by developing healthier products and products that are more convenient to use. Wea€™ll look at marketing plans here and discuss them more completely in Chapter 16 "The Marketing Plan". The marketing plan also helps the firm allocate resources and divvy up the tasks that employees need to do for the company to meet its objectives.
The Campbell Soup Company gets consumers to buy more soup by providing easy recipes using their soup as an ingredient for cooking quick meals. A new product can also be one that comes in different variations, such as new flavors, colors, and sizes. For example, during the recent economic downturn, manufacturers of high-end coffee makers began targeting customers who go to coffee shops. Firms can simply exportSell products to buyers in foreign markets., or sell their products to buyers abroad, which is the least risky and least expensive method but also offers the least amount of control. Examples of products in which contract manufacturing is often used include cell phones, computers, and printers. After entering the market in a partnership with a domestic firm and becoming established in the market, some firms may decide to separate from their partner and become their own business.
A direct investment strategy involves the most risk and investment but offers the most control.
Warner Music Groupa€™s purchase of the concert promoter Bulldog Entertainment is an example of a diversification attempt that failed.
However, the BCG matrix is subjective and managers should also use their judgment and other planning approaches before making decisions. For example, as the price of gasoline soared in 2008, many consumers purchased motorcycles and mopeds, which get better gas mileage. The goal is to try to generate short-term profits from the product regardless of the long-term impact on its survival. For example, the automobile industry is not attractive in times of economic downturn such as the recession in 2009, so many automobile manufacturers dona€™t want to invest more in production.
In that case, the company should harvest the business (slowly reduce the investments made in it), divest the business (drop or sell it), or stop investing in it, which is what happened with many automotive manufacturers. The introduction of salads and public nutrition campaigns are examples of McDonald's efforts to adapt its business model to changing trends in the market. Such a service has the potential of creating a cadre of smaller-scale commercial farmers, who will be better adapted to changing agricultural markets, trained in the use of modern information systems, and able to access services and receive advice via their mobile phones.
Search costs were significantly reduced, coordination among market participants improved, and market efficiency increased as traders became engaged in the search process themselves rather than being on the receiving end of a one-way communications system.
Some farmers developed a two-way trade, bringing products back from the market to sell in their own rural communities. Other potential services, such as market price information, market intelligence, and specific cell-phone-based applications, largely perform support and secondary functions that make farmers’ mobile phones more useful. Markets themselves could be built in selected hubs in rural areas where local farmers can convene and sell produce.
Ultimately, the farming community will be better off if it can align production more closely to market changes and opportunities. The power balance in these negotiations is altogether different when the trader senses that that the farmer-interlocutor also appreciates the real market situation and can access different markets, buyers, and outlets.
As emphasized in the overview, the early lesson is that it is not at all easy to manage and operate financially viable businesses selling information to farmers. Strong growth in consumption is expected for animal proteins (surpassing 5 percent), processed products (over 6 percent for milk and other processed foods and beverages), and high-value crops (over 4 percent).
These are corporate level plansPlans developed for the corporation as a whole take place at the corporate level.. The external environment significantly affects the decisions a firm makes, and thus must be continuously evaluated. Opportunities might entail the international demand for the type of products the firm makes, few competitors, and favorable social trends such as people living longer. See Figure 2.6 "Elements of a SWOT Analysis" for an illustration of some of the factors examined in a SWOT analysis.
Firms may also look at customersa€™ reactions to changes in products, including packaging, to see what works and doesna€™t work. Doing so is similar to what organizations do when they analyze their internal environments. Regulations, competitors, technological development, and the economy may be different in each country and will affect how firms do business.
Competitors battle for the customera€™s dollar and they must know what other firms are doing. Most students may not have ever used a typewriter, but some consumers still use typewriters for forms and letters. Recessions can also occur when inflation rises because higher prices sometimes cause low or negative growth in the economy. Consumers reduced their spending, holiday sales dropped, financial institutions went bankrupt, the mortgage industry collapsed, and the a€?Big Threea€? U.S. Hotels voluntarily conserve water by not washing guestsa€™ sheets and towels every day unless they request it. For example, your objectives might be to maintain a certain grade point average and get work experience or an internship before you graduate. The different components of marketing plans will be discussed throughout the book and then discussed together at the end of the book. The manufacturers are hoping to develop the market for their products by making sure consumers know they can brew a great cup of coffee at home for a fraction of what they spend at Starbucks.
Other companies such as advertising agencies may want to invest and develop their own businesses directly in international markets rather than trying to do so via other companies. Two of the most widely used portfolio planning approaches include the Boston Consulting Group (BCG) matrix and the General Electric (GE) approach. Using the BCG matrix, managers can categorize their SBUs (products) into one of four categories, as shown in Figure 2.15 "The Boston Consulting Group (BCG) Matrix". Eventually, DVDs are likely to be replaced by digital downloads, just like MP3s replaced CDs. With the success sequence, money is taken from cash cows (if available) and invested into question marks in hopes of them becoming stars. For a mobile phone company, the actual costs of SMS transmittal is a fraction of the price charged. Traders were able to expand their reach of searchable markets, sell in more markets, and increase their network of contacts. A particularly important change was that they used their new market knowledge to become more market oriented in their production, move away from producing low-value crops, and diversify into higher-value enterprises. In addition, many large firms have different divisions, or businesses, called strategic business units. For example, during the economic downturn in 2008a€“2009, businesses found that many competitors cut the prices of their products drastically. Threats might include a bad economy, high interest rates that increase a firma€™s borrowing costs, and an aging population that makes it hard for the business to find workers. Individuals and teams also compete for jobs, titles, and prizes and must figure out the competitorsa€™ weaknesses and plans in order to take advantage of their strengths and have a better chance of winning.
Firms that do business with Walmart must be prepared to make concessions to them if they want their products on the companya€™s store shelves.
Food and Drug Administration (FDA) regulates the labeling of consumable products, such as food and medicine. Firms are responding to the time constraints their buyers face by creating products that are more convenient, such as frozen meals and nutritious snacks. Reusing packages (refillable containers) and reducing the amount of packaging, paper, energy, and water in the production of goods and services are becoming key considerations for many organizations, whether they sell their products to other businesses or to final users (consumers).
Next, leta€™s take a look at the different types of basic market strategies firms pursue before they develop their marketing plans. Companies with cash cows need to manage them so that they continue to generate revenue to fund star products. As a result, they keep producing products and services they shouldna€™t or invest in dogs in hopes theya€™ll succeed.
An average trip to a market located 65 kilometers away in rural Niger can take two to four hours round trip, compared to a two-minute call.
The knowledge gained from using the mobile phone reduced the perceived levels of risk and helped them target their production to specific, identified market opportunities. Normally these investments are made in existing and expanding marketplaces, often with public investment linked to improvements in market management. Given that about half of India’s fish is sourced from the sea, meeting this demand will require fish supplies from freshwater sources such as lakes, rivers, ponds, and fish farms to grow by about 10 percent per year.
This, in turn, could help you more quickly repay any college money you might owe your parentsa€”something that they might very much value. A strategic business unit (SBU)Businesses or product lines within an organization that have their own competitors, customers, and profit centers.
Tropicana switched from the familiar orange with the straw in it to a new package and customers did not like it. Originally created in 2006, the video has been updated and translated into other languages. One organization that has been extremely busy is the Consumer Product Safety Commission, the group that sets safety standards for consumer products.
Green marketing not only helps the environment but also saves the company, and ultimately the consumer, money.
For example, just after Starbucks announced it was cutting back on the number of its lunch offerings, Dunkina€™ Donuts announced it was adding items to its lunch menu. Thata€™s what Procter & Gamble did in 2008 when it sold its Folgers coffee brand to Smuckers. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. For example, a market committee is formed of stakeholders to actively promote the market, oversee its operation and management, and become empowered to act on its further development.
Firms also offered customers incentives (free shipping, free gift cards with purchase, rebates, etc.) to purchase their goods and services online, which allowed businesses to cut back on the personnel needed to staff their brick-and-mortar stores. As a result, Tropicana changed back to their familiar orange with a straw after spending $35 million for the new package design. The latest edition of a€?Did You Know?a€? was created in Rome in 2008 and shows how information may change the world.
Unsafe baby formula and toys with lead paint caused a big scare among consumers in 2008 and 2009. Sustainability, ethics (doing the right things), and social responsibility (helping society, communities, and other people) influence an organizationa€™s planning process and the strategies they implement. The venture combined the Japanese company Sonya€™s electronic expertise with the Swedish company Ericssona€™s telecommunication expertise. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest. In the minds of mobile phone company executives, their challenge is to balance the high margins generated by SMS messaging with the potential of those messages to generate additional revenue from voice services. A firma€™s SBUs may also have their own mission statement (purpose) and will generally develop strategic plans for themselves. While a business cannot control what competitors do, they must decide what actions to take to remain competitivea€”actions that depend in part on their internal environment.
Many dogs are divested, but companies may also divest products because they want to focus on other brands they have in their portfolio. These are called business level plansPlans developed for each strategic business unit typically have their own mission statement.. Even so, there is considerable scope for a regulator to insist that SMS rates be significantly reduced for the transmission of public-good information. The different departments, or functions (accounting, finance, marketing, and so forth) within a company or SBU, might also develop strategic plans. For example, in South Asia the total cost for a private company to deliver a single agricultural text message is believed to be around 2 US cents.
For example, a company may develop a marketing plan or a financial plan, which are functional level plans. This cost is divided into one-third (that is, about US 0.6 cents) for broadcasting the SMS, one-third for sales and marketing, and the remainder for the whole operation of collecting and analyzing information and operating the business. Where the public sector wants to use SMS technology to disseminate information to government staff and farmers, the affordability of the technology is highly relevant. A World Bank project coordination office in India recently negotiated to broadcast 100,000 SMS messages at US 0.4 cents each.



Marketing your companys 10 year anniversary letter
Vsdc free video editor android
Animation software for powerpoint
Live streaming hosting free



Comments to «Marketing strategy for a fast food restaurant»

  1. AYDAN writes:
    Are available, with a lot of applications that can business) to have manage over their files and your.
  2. SmashGirl writes:
    Creating money with these as you improvement and sharing tools Focusky is now offering.
  3. Akira writes:
    How awesome you can make one web.
  4. fidos writes:
    That make watching video on the d750s that Fstoppers makes use.
  5. NELLY_FURTADO writes:
    Personal computer sound unless you test, which.