...PRICING OF A PRODUCT (COCA COLA) Third Semester- Project 1 Submitted by: BACHELOR OF BUSINESS ADMINISTRATION (Working Professional) Department of Business Administration January 2015 Acknowledgement I feel deeply indebted towards people who have guided me in this project. It would have not been possible to make such an extensive report without the help, guidance and inputs from them. Most of my information has been from the net by reading a lot about Pricing of a product in marketing & how Coca Cola Company maintains their market through an appropriate pricing strategy and also from professional books of marketing. I also would like to thank Mr. Sunil for giving us such a nice opportunity and freedom to choose a topic we like and to work in it. Abstract The basic objective of my research was to analyze the awareness among customers about the price of a product all over the world. Price even describes the standard a company maintains in its product quality and how they work towards achieving their customer’s satisfaction. As I specially concentrated on Coca Cola Company, the findings reveal that people know a lot about the company’s products, its price & they are completely satisfied with the quality they maintain in soft drinks market. In the highly competitive world of the soft drink industry, the Coca Cola Company stands out as one of the top competitors Table of Contents S. No. | Topic | Pg.No. | 1. | Introduction | | 2. | Factors...
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... | | | | |information for making decisions.| | | | | |LO2: Apply the decision process | |28,29,39 | | | |to make business decisions. | | | | | |LO3: Construct absorption and |A1,B1 |24,31,32,33, 34,35 |48 | | |contribution-margin income | | | | | |statements and identify their | | | |...
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...Solutions to Questions 12-1 In a decentralized organization, decision-making authority isn’t confined to a few top executives, but rather is spread throughout the organization with lower-level managers and other employees empowered to make decisions. 12-2 The benefits of decentralization include: (1) freeing top managers to focus on strategy, higher-level decision making, and coordinating activity; (2) improving operational decision making, since lower-level managers often have better information about local conditions; (3) enabling quicker response to customer needs; (4) training lower-level managers to take on greater responsibility; and (5) providing greater motivation and job satisfaction for lower-level managers. 12-3 A cost center manager has control over cost, but not revenue or investment funds. A profit center manager has control over both cost and revenue. An investment center manager has control over cost and revenue and investment funds. 12-4 A segment is any part or activity of an organization about which a manager seeks cost, revenue, or profit data. Examples of segments include departments, operations, sales territories, divisions, product lines, and so forth. 12-5 Under the contribution approach, costs are assigned to a segment if and only if the costs are traceable to the segment. Common costs are not allocated to segments under the contribution approach. 12-6 A traceable cost of a segment is a cost that arises specifically because of the existence...
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...Abstract 4 Introduction 5 Situational Analysis 7 Demographics 7 Socio-Cultural 7 Political-Legal 8 Technology/Industrial 8 Economic 9 Global 9 S.W.O.T. Analysis 10 Strengths 11 Weaknesses 12 Opportunities 12 Threats 14 T.O.W.S. Analysis 15 External Strengths/Internal Opportunities 16 External Weaknesses/Internal Opportunities 16 External Strengths/Internal Threats 16 External Weaknesses/Internal Threats 16 Porter’s Five Forces 17 Threat of New Entrants 18 Bargaining Power of Suppliers 18 Bargaining Power of Buyers 19 Rivalry Amongst Existing Firms 19 Threat of Substitute Products or Services 19 Financial Ratios 20 Liquidity Ratio: Cash Ratio 21 Debt Management Ratio: Total debt Ratio 22 Profitability Ratio: Profit Margin 22 Balanced Scorecard 23 Balanced Scorecard Diagram 27 Strategy Formulation 28 Plan of Action and Recommendation 31 Highlights From This Year 31 Budget and Time Line Expectations Summary 31 Citations 33 Abstract This report reviews the McDonald’s corporation profile to include; an introduction to corporate history a time menu and current franchise information. The strategic Profile will provide a complete analysis of economic, socio-cultural, technology and global synopsis of the industry. Followed by the Porters five forces analysis, and financial ratios that provide a logical rational of the company. Also included in this report...
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...identify their innovation fulcrum, the point at which the level of product innovation maximizes both revenues and profits. Innovation Versus Complexity What Is Too Much of a Good Thing? by Mark Gottfredson and Keith Aspinall Reprint R0511C To get at the roots of profit-destroying complexity, companies need to identify their innovation fulcrum, the point at which the level of product innovation maximizes both revenues and profits. Innovation Versus Complexity What Is Too Much of a Good Thing? COPYRIGHT © 2005 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. by Mark Gottfredson and Keith Aspinall Walk into the In-N-Out Burger restaurant on Fisherman’s Wharf in San Francisco, and one of the first things that may strike you is the number four. Four colors: red, white, yellow, and gray; four cash registers with four friendly faces behind them; and just four items on the menu. You can buy burgers, fries, shakes, and sodas. All the ingredients are delivered fresh to the store, where they’re prepared in the open kitchen behind the cashiers. You’ll see a few folks eating at the restaurant’s tables or tucking into their food outdoors on patio benches, but most customers come in with a handful of cash—no credit or debit cards, thank you—and head back out with their meals. Four is In-N-Out Burger’s innovation fulcrum—the point at which the number of products strikes the right balance between customer satisfaction and operating...
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...382 PART 5 SHAPING THE MARKET OFFERINGS ter p ha C 14 In This Chapter, We Will Address the Following Questions 1. How do consumers process and evaluate prices? 2. How should a company set prices initially for products or services? 3. How should a company adapt prices to meet varying circumstances and opportunities? 4. When should a company initiate a price change? 5. How should a company respond to a competitor’s price change? As a high-end luxury goods provider, Tiffany & Co. knows the importance of preserving the integrity of its prices. Developing Pricing Strategies and Programs Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Prices are perhaps the easiest element of the marketing program to adjust; product features, channels, and even communications take more time. Price also communicates to the market the company’s intended value positioning of its product or brand. A well-designed and marketed product can command a price premium and reap big profits. But new economic realities have caused many consumers to pinch pennies, and many companies have had to carefully review their pricing strategies as a result. For its entire century-and-a-half history, Tiffany’s name has connoted diamonds and luxury. Tiffany designed a pitcher for Abraham Lincoln’s inaugural, made swords for the Civil War, introduced sterling silver to the United States, and designed the “E Pluribus Unum” insignia that adorns $1 bills...
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...Developing Pricing Strategies and Programs Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Prices are perhaps the easiest element of the marketing program to adjust; product features, channels, and even communications take more time. Price also communicates to the market the company’s intended value positioning of its product or brand. A well-designed and marketed product can command a price premium and reap big profits. But new economic realities have caused many consumers to pinch pennies, and many companies have had to carefully review their pricing strategies as a result. For its entire century-and-a-half history, Tiffany’s name has connoted diamonds and luxury. Tiffany designed a pitcher for Abraham Lincoln’s inaugural, made swords for the Civil War, introduced sterling silver to the United States, and designed the “E Pluribus Unum” insignia that adorns $1 bills as well as the Super Bowl and NASCAR trophies. A cultural icon—its Tiffany Blue color is even trademarked—Tiffany has survived the economy’s numerous ups and downs through the years. With the emergence in the late 1990s of the notion of “affordable luxuries,” Tiffany seized the moment by creating a line of cheaper silver jewelry. Its “Return to Tiffany” silver bracelet became a must-have item for teens of a certain set. Earnings skyrocketed for the next five years, but the affordable jewelry brought both an image and a pricing crisis for the company: What...
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...Industry revenue is concentrated within top manufacturers with the top 50 accounting for 65% of the revenue. Cabinet manufacturers have witnessed a drastic reduction in overall sales with a decline in sales of 45% over the past four years. Industry experts are predicting that the market will stabilize by the end of 2010 with industry sales increasing to $15.2 billion by 2014. Due to the drastic decline in the market, over the past four years, manufacturers have been focusing on cost cutting initiatives and efficiency improvement to achieve profitability. Cabinet manufacturers view fasteners (staples and nails) as a commodity primarily due to the lack of differentiation. Generic fasteners have slowly increased their presence, through distributors, resulting in increased focus on price. Fasteners are used during the assembly process to join the wood components until the glue dries providing the long term bond. Currently, poorly placed fasteners account for approximately 3%-5% rejection rate during production resulting in cabinet re-work or replacement costing cabinet manufacturers two to three times the cost of the fastener. Product Enginuity by Duo-Fast is an application based assembly system consisting of tools, fasteners and placement guides specific to...
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...Club opened and started two other stores, one in southern California and one in northern California. Juice Club Inc, changed its name to Jamba Juice in 1995 and became known as one of the leaders in healthy juices and smoothies. Jamba Juice is now a chain of smoothie restaurants with over 700 stores in the United States. Jamba Juice can be found in shopping malls, airports, colleges, inside other stores, and they have over 500 independent locations. Jamba Juice celebrates life. Their mission statements as well as their values portrays the importance of eating healthy, but enjoying what you eat. Jamba Juice’s mission is to become the world’s leading blender of fruit and other naturally healthy ingredients. The company believes that the passion of living a healthy lifestyle by both the customers and their employees is what has made Jamba Juice, Inc. such a successful company. On the Jamba Juice website, it states that Jamba Juice has one, timeless purpose which is to inspire and simplify healthy living. Jamba Juice hopes that their values are reached through the many different offerings provided. The acronym F.I.B.E.R best sums up these values: * Fun. Have FUN! Enjoy what you do. Live a healthy, energetic life. * Integrity. Act with integrity. Be honest and honorable in all you do. Communicated openly and treat other’s with respect. * Believe. Believe in yourself and Jamba! Lead with enthusiasm, passion, and confidence. * Excellence. Achieve excellence in...
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...EXECUTIVE SUMMARY This assignment report requires the author to choose an organization either in the textiles or clothing manufacturing and retailing industries. The purpose and scope of this report is to discuss the application of the strategic management process on the chosen organization. First of all, the introduction on the strategic management process is made whereby the importance of it towards an organization is explained. Next, a company called Body Glove International L.C.C that is specialized in clothing manufacturing and retailing markets is chosen. A company profile that briefly describe the company such as the founder and year founded, location, product range, competitors, revenues and turnover are written. Then, the importance and impact of the first stages in strategic management process that is strategic analysis towards Body Glove International L.C.C is explained. In strategic analysis, there are three types of evaluation on an organization, namely, general environment, competitive environment and internal environment. General environment explained about the weak signals that the firm must detect before it creates impact towards the company. There are three types of tool to detect the weak signals, namely, pest analysis which focuses more on external factors, swot analysis focuses on its internal and external environment of the organization and scenario planning which is about future prediction. Competitive environment on the other hand emphasizes more to...
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...Table of Contents Executive Summary 3 PEST Analysis 3 Financial Analysis 6 Porter’s Five Forces 8 Market Audit-Space 10 Boston Consulting Group( BCG) 13 Segmentation 15 Critical Success Factors 16 Key Problem Identification 17 Marketing Objectives 21 Other Strategies 22 Marketing Budget 24 Monitoring and Control-Balance Score Card 26 Bibliography 28 EXECUTIVE SUMMARY We are the XYZ Group and our aim is to develop a Global Strategic Marketing Plan for three years for Unilever Company.Unilever is the British/Dutch jointly owned multinational consumer goods manufacturer. The Mission statement is deduced from the case study and stated to give a clear picture and guide to the global marketing plan for Unilever. The paper will assess the changes taking place in the company’s environment and how...
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...CHAPTER ONE – BUSINESS ORGANIZATION AND ENVIRONMENT Unit 1.1 – Nature of Business Activity • A business is a decision-making organization that uses inputs to produce goods and/or services Inputs: resources used in the production process Outputs/products include: Goods: physical, tangible products Services: intangible products Exist to satisfy the needs (basic necessities) or wants (desires) of people, organizations and governments Important to have clearly defined functions/processes Ex. human resources, production, marketing and finance Customers: people/organizations that buy the product Consumers: those who use the product Consumer goods: sold to the general public and can be split into: Consumer durables: products that last a long time Non-durables: products that needs to be consumed very shortly after purchase Capital goods: purchased by other businesses Added value: difference b/w the value of inputs and the value of outputs Allows a business to sell its products for more than production cost (leads to profit) Comes in the form of: Speed/quality, prestige, brand image, feel-good factor, perceived value, inability to achieve cheaper products elsewhere Opportunity cost: best alternative decision that is foregone when making a decision Leads to rational decision making Choose options that will generate the highest valued benefits to the business Role of profit: Acts as incentive to produce Acts as the reward for risk takers Encourages innovation...
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...accounting system, an important component of a firm’s information system, includes budgets, data on the costs of each product and current inventory and periodic financial reports. Internal accounting systems serve two purposes: v Provide some of the knowledge necessary for planning and decision making; v Help motivate and monitor people in organizations (control). The most basic control use of accounting is to prevent fraud and embezzlement. Design and use of cost systems An internal accounting system should have the following characteristics: v Provide the information necessary to identify the most profitable products and the pricing and marketing strategies to achieve the desired volume levels; v Provide information to detect production inefficiencies to ensure that the proposed products and volumes are produced at minimum costs; v When combined with the performance evaluation and reward systems, create incentives for managers to maximize firm value; v Support the financial accounting and tax accounting reporting functions; v Contribute more to firm value than it costs. Economic Darwinism (strong organizations will survive) Two caveats must be raised concerning too strict an application of economic Darwinism: v Some surviving operating procedures can be neutral mutations. Just because a system survives does not mean that its benefits exceed its costs. Benefits less costs might be close to zero. v Just because a given system survives does not mean it is optimal. A better...
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...Oregon that gives intriguing stock alternatives at deal costs. Financing will originate from the private speculations of proprietors Ted Brinkman. They will give a value that will be cleared toward the end of 36 months. Profits will be paid quarterly on the extraordinary value. The wine distillers will be a private company. With an aggressive advertising arrange Taj distillers’ hopes to experience enduring development as it turns out to be better known to the overall population. With the financing set up, Taj distillers will have the capacity to open effectively and keep up operations through year one. The extensive capital speculations of the proprietors will give general society a remarkable and imaginative store that will take into account the requirements of those on settled earnings, for example, low wage families, the elderly, and the huge understudy populace in the Bend zone. The fruitful operation of the Taj distillers will give a client base that will permit it to act naturally adequate. 1. Objectives The fundamental objective of the wine business is to fabricate a line so exceptional and advance it so adequately that purchasers will pay a premium. My long haul goal is to manufacture a business sector that is not by any means in light of cost. My exceptional components will include: • Labels that...
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