...※ 繳交日期五月二十日下午五點前，逾期不計分 作業Ⅵ： The Healthy Spring Water company sells bottled water for offices and homes. The price of the water is $20 per 10 gallon bottle and the company currently sells 2000 bottles per day. Following is the company's income and costs on a daily basis. Sales revenue $40,000 Incremental Variable cost $16,000 Nonincremental Fixed cost $20,000 [Note: you can assume that variable costs are constant so that the average of them is also the variable cost relevant for a change in sales.] The company is enjoying stable demand with its current pricing, but management is looking for ways to increase profitability. One suggestion is that the company reposition its water as a premium product, justifying a higher price. If successful, the company believes that it could charge 20% more for its water than it does now. 1. What is the maximum sales loss (in % and units) that Healthy Spring could tolerate before a 20% price increase would fail to make a positive contribution to its profitability? (That is, what is the basic break-even sales change?) 2. By how much would Healthy Spring's contribution increase if its sales declined by 15% following the price increase? 3. In order for Healthy Spring to reposition itself as a premium water, management believes that it will have to upgrade the packaging of its product. The company will deliver the water in glass rather than plastic bottles and the bottles will be "safety sealed" to insure their cleanliness...
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...※ 繳交日期五月二十日下午五點前，逾期不計分 作業Ⅵ： The Healthy Spring Water company sells bottled water for offices and homes. The price of the water is $20 per 10 gallon bottle and the company currently sells 2000 bottles per day. Following is the company's income and costs on a daily basis. Sales revenue $40,000 Incremental Variable cost $16,000 Nonincremental Fixed cost $20,000 [Note: you can assume that variable costs are constant so that the average of them is also the variable cost relevant for a change in sales.] The company is enjoying stable demand with its current pricing, but management is looking for ways to increase profitability. One suggestion is that the company reposition its water as a premium product, justifying a higher price. If successful, the company believes that it could charge 20% more for its water than it does now. 1. What is the maximum sales loss (in % and units) that Healthy Spring could tolerate before a 20% price increase would fail to make a positive contribution to its profitability? (That is, what is the basic break-even sales change?) 2. By how much would Healthy Spring's contribution increase if its sales declined by 15% following the price increase? 3. In order for Healthy Spring to reposition itself as a premium water, management believes that it will have to upgrade the packaging of its product. The company will deliver the water in glass rather than plastic bottles and the bottles will be "safety sealed" to insure their cleanliness...
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...Bottled Water There are many different kinds of bottled waters for sale in this modern day. Some bottled waters are carbonated, flavored, or have added chemicals for cleaning purposes. A twenty ounce bottle of water cost’s around one or two dollars. In reference to the water bill from my parent’s house in the town of Chesaning which is in Saginaw County the cost of water is three dollars and thirty cents for one thousand gallons of municipal water (Ebenhoeh D). Not only do bottled water companies use up the earth’s water supply, they use massive amounts of plastic, and the water they sell that is supposedly cleaner and more healthy than tap water, is less healthy and has more contaminants than tap water. Bottled water is no cleaner than municipal water. In the United States bottled standards are set and regulated by the Food and Drug Administration. The Food and Drug Administration (FDA) standards for cleanliness are not as high as the regulations set for city or municipal water set by the Environmental Protection Agency (EPA). According to Lauren Posnick of the FDA, bottled water can have up to two hundred and fifty parts per million of dissolved solids and still be clean enough to sell (Posnick). Drinking water that comes through the tap is monitored through the Environmental Protection Agency, also known as the EPA. The EPA standards for water are much higher and much more thorough than the FDA. According to the EPA the FDA allows up to two hundred and fifty...
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...Publicity 6 (c) Public Relations 6 6. PACKAGING 6 7. CONSUMER BUYING BEHAVIOUR 7 (a) Buyer responses 7 1. DESCRIPTION OF THE PRODUCT (a) Product name: Springs (b) Description Springs is bottled carbonated water (sparkling water) which is water with carbon dioxide under pressure dissolved in it. It is introduced as plain drinking water or flavoured with no sweetener. It is similar to naturally occurring mineral water. The carbon bubbles make the water more interesting without adding calories. People who are health conscious can choose springs as a fun alternative to soft drinks containing artificial flavours and colours. (c) Product range * Plain carbonated water * Flavoured carbonated water (containing natural flavours) * Orange flavour * Lime flavour * Grape flavour * Raspberry flavour (d) Launch Carbonated water is easily available internationally but it is not yet a part of Pakistani market. We plan to introduce seltzer water in Pakistan, initially Islamabad and Rawalpindi region to reduce the trend of harmful soft drinks consumption. (e) Entry Strategy Springs will enter the market by using the strategy of Product development; having a new product in an existing market. Springs (f) Product Characteristics Certain are the important attributes of springs: * It is...
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...assignment. This research assignment would not have been possible without the support of many people especially group members; Mubashir, Safeer, Usama and Shahriyar for sharing the literature and invaluable assistance. Without helps of the particular that mentioned above, we would face many difficulties while doing this Introduction of Pepsi Co. International: Mr. Caleb Bradham a young pharmacist from New Bern, North Carolina City. In January 1898, this was the starting period of Pepsi-cola. Caleb Bradham created a drink, which is call "the Brad Drink". In 1903 Brad index the name drink Pepsi. At Marco level he ongoing his own produced and build his own organization. The trade extended and this drink achieved appreciation time. This company appears at 24 states of America with more than 250 dealers in 1909. First time Pepsi packed in 16.5 ounce packing size. Pepsi-cola has launched its new filler in 12 ounce in 1932. New promotion struggle is started with the name of "Refresh without Filling" in 1950 by Pepsi-cola. The chemical formula also changed which caused to decrease its...
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...World. Bottled water has been one of the success stories of the past 20 years. Always popularin some European countries such as France and Italy, fears about contamination of water supplies coupled with rising affluence has resulted in exponential growth in the market in countries where previously people were perfectly happy to drink tap water. The growth in the world population, and consequently increasing pressure on freshwater supplies, means that tap water in many countries is either contaminated or (at best) tastes unpleasant owing to residues from the purification system. The problem for many of the firms in the industry has been the cost of purifying and bottling the water; traditional sources of mineral water, such as the Perrier springs, are inadequate to cope with the potential world supply. Nestles answer to the problem is to source the water in China, where bottling costs are low, and rather than use expensive spring water, to purify ordinary tap water. This renders the water safe to drink, but at a fraction of the overall cost of using spring or mineral water. Nestle initially entered the Asian market by buying out local brands. The company now owns over 50 local brands in Asia, and is lobbying governments in Pakistan, Ghana and the Philippines to allow foreign ownership of local companies: In some Asian countries, notably Thailand, the market has developed to the point where only the very poorest people would drink tap water; Nestle hopes to achieve...
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...Natural Spring Water (my potential second company) ------------------------------------------------- Icelandic Glacial Water Expands Executive Team July 2, 2013 2:18 pm | inShare13 | | | Icelandic Water Holdings hf, makers of the award-winning CarbonNeutral® natural spring water Icelandic Glacial, announced today that Michael Sachs has joined Icelandic Glacial as Director of Global Marketing for the brand and Daniel Gadomski will be leading the accounts sales team as Director of National Accounts. Sachs, an industry veteran who has worked for over 16 years in the beverage category, brings both brand management and sales experience to the company. For the past five years Mr. Sachs was President and Co-Founder of Code Blue Recovery Drink. Prior to that, he worked for Bacardi USA as a Marketing Manager for Grey Goose Vodka. Michael holds an MBA in finance and marketing from the University of Miami and a BA from Boston University. In addition to the appointment of Mr. Sachs, Daniel Gadomski has also joined the ever-expanding Icelandic Glacial team this week as Director of National Accounts. Mr. Gadomski comes to the company with over 20 years of experience in the grocery business; most recently managing all Grocery and DSD nationally for Steaz Tea. Prior to Steaz Tea, Mr. Gadomski was an integral part in the growth of the O.N.E Coconut water brand, generating over 35 million in sales in three years. He also spent a combined 12 years in sales with Sparkletts Water before...
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...without fresh drinking water. Alice Waters, idol of the local foods movement and owner of Chez Panisse, decision on taking bottled water down from her menu started a rumbling against bottled water. Royte shows how many people were not against the water in the water bottles, but the amount of oil that is used to make them, which many people are unaware of. Even though, many chemicals were found in the bottled water, Waters shares that the water is indeed safe, at least by the government regulations. Bottled water is not required, by the Food and Drug Administration, to check for germs and viruses because it is spring water and it is said to not have these bacteria; unlike tap water, which is required to check for these organisms, by the Environmental Protection Agency....
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...Company Overview NESTLÉ® was formed in 1905 by the merger of two competitors Anglo-Swiss Milk Company and Farine Lactée Henri Nestlé. (Nestle, 2013). The name of the company comes from the last name of the founder of the company, Henri Nestlé. He was a German pharmacist who developed a milk-based baby food. According to the company’s website, the corporate headquarters are located in Vevey, Switzerland, and the company has more than 25,000 employees nationwide, and 25 manufacturing facilities, 35 distribution centers, and 15 sales offices across the U.S. (Nestlé, 2013). Currently, the role of a CEO plays Paul Bulcke, who started working for the company in 1979 (Nestlé, 2013). The employees of Nestlé are dedicated to produce high quality products and maintain the best service (Nestlé Waters North America, 2013). The company believes in respect for people, honesty, integrity and teamwork and wants to achieve the organizational objectives by meeting current needs of people without compromising the needs of future generation (Nestlé Waters North America, 2013). The beliefs provide framework for decision making process and the same they shape the culture of the company. According to the company’s website, Nestlé works with partners like, the Partnership for a Healthier American (PHA) and USDA to promote healthy hydration and encourage people to healthy life style (Nestlé Waters North America,2013). The Nestle Company is a wide array of products that range from cereals...
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...4/22/14 Dirty Bottled Water These days everything is about being quick, easy and convienent. Americans are always on the go. Many don’t think about what they are consuming. We as a society have slowly over time lost the value of our health. Today one of the largest industries is bottled water. Many people are not aware of this either. Not only are these companies taking away from our environment but also possibly bad for our health. The whole process is bad, from actually creating the plastic bottles to transporting it to the recycling process which is still not good. These big companies like Pepsi, Coke, and Nestle just to name a few have brain washed Americans into believing tap water is bad for you and their purified water is so much better for you. In many cases this is not true. While many believe that bottled water came about because of the need to stay hydrated on the go, there is actually a more significant reason as to why it became so popular. There are a number of important periods that led to the commercialization of water. The history of portable bottled water starts as early as the development of agriculture, which required capturing, storing, and distributing water. Later, Egyptians actually devised filtration systems in order to filter water from the Nile, which they then stored in clay pots. Water has always been viewed as a necessary part of life, whether it was because of hygiene, hydration, or any of the other common uses for water. It wasn’t until the 18th...
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...you Water (2012) Brand Audit ------------------------------------------------- ------------------------------------------------- ADV 201-Brand Building ------------------------------------------------- Tim Beaty ------------------------------------------------- By ------------------------------------------------- Mark Bell ------------------------------------------------- 00051469T ------------------------------------------------- Executive summary Thankyou Water operates in the highly competitive, 600 million dollar bottled water market in Australia. This relatively new brand is seeking take advantage of changes in social attitudes and trends in Australia. Each dollar of profit that is spent on Thankyou Water products goes toward providing water to developing nations across the world. Social changes, have dictated that consumers are more conscious of business profit; this presents an opportunity to Thankyou Water. Additionally Thankyou Water has had to be wary of changes in legislation and any demographic shifts in the Australian population. Technological changes will allow Thankyou Water to become more efficient in the distribution of its product and packaging. Thankyou Water’s competitive advantage lies in the price of its product, and the need in which it meets as a socially enterprise. With each dollar of profit going to numerous water projects, Thankyou Water, appeal to this ‘socially conscious consumer’ in the Australian bottled water market...
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...TABLE OF CONTENTS Case Study – Vincor: Project Twist Executive Summary………………………………………………………………………………………..………….…….2 Problem Statement………………………………………………………………………………………………………….2 Situation Analysis………………………..…………………………………………………………………………………..2 Background…………………………………………………………………………………………………………2 Objectives………………..………………………………………………………………………………………..2 S.W.O.T. Analysis………..…...…………………………………………………………..……………………………….3-4 Market Analysis………….....……………………....…..…..…………………………..……………………………….4 Competition Analysis….......…………………………....…..…………………………………………….4 Positioning Map….......…….………………………....…..…..……..……..................................5 PESTE………...….......…….………………………....…..…..…………..……..................................5-6 Consumer Analysis…...…….………………………....…..…..……………………………………………7 Case Keys.…………………………………...…………………………………….………………………………………….8 Alternatives……………………...…………………………………...…………………………………………………….8-9 Recommendation………………..…………………………………...…………………………………………………9-10 Action Plan…………………………………………………………...………………...………………………………….10 Short term………….………………………………………………………...………………………………..10 Long term……………………………………………………………………..………………………………..10 Contingency Plan……………..……………………………………...………………….................................10 Market Segmentation Chart- Appendix A……………………………………………………………………11-12 Pricing Options Chart- Appendix B……………………………………………………………………………..13 Executive Summary: Vincor, world-renown for its production and distribution of wine and wine-related products,...
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...2014 Trends Report Top 10 Global Spa and Wellness Trends Forecast 2014 Trends Report Top 10 Global Spa and Wellness Trends Forecast This is our 11th annual Trends Forecast, and I have never been more excited about the spa and wellness industry. So many of the trends we predicted over the past decade are now coming to fruition…helping businesses thrive and helping people live more healthfully every day. At the same time, we are seeing new, provocative ideas that will have a dramatic impact around the globe. The 2014 trends reflect an industry that is reimagining core elements of spa and wellness and exploring brave, new directions. It is gratifying to see a healthy dose of healthy travel in several of the trends; bold new ideas in mainstays like aromatherapy and hot springs take hold; and the development of new models for classic destination spas. It is also rewarding to watch trends in technology, beauty and fitness shape how we will live (and look)—and even take note of how the industry will help people address dying, illness and major life changes. And finally, there is a trend we forecasted in 2013 that continues to capture our imagination: mindfulness. We feel strongly that it is important to watch how this is evolving, and you’ll see a short synopsis of this “über trend” in the report. Spafinder Wellness 365™’s Trends Forecast reports on what is happening in our industry, but we also strive to present a true forecast of what lies ahead. Some ideas are still on...
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...characteristics of the bottled water industry? If we define the economic characteristics in term of macro environment, there is several ways that we can categorize as the follow; Market size and growth rate The bottled water industry has a high potential in growth rate and in the terms of sales volume or per capita consumption rate. For example, the United States’ capita consumption of bottled water lagged those of soft drinks by more than a 2:1 margin. In term of bottle water, the majority of sales volume has burden on single- serving PET containers than 5 or 1-2.5 gallon high density polyethylene containers which use for home or office. The single PET container has been satisfied by the customers because they are convenience and portable. So it could be purchased from a convenience store. Number of rival There were fierce competitions among the producers that have scale and scope of operations which were similar to each other. For instance, the Pepsi Co. and Coca Cola companies have developed the strategy and infrastructure, which are hard for the local sellers to complete with them. However, there were still many producers including new entrants that try to access the market and compete seriously with low price and differentiation- strategies among rivals. Scope of competitive rivalry The Local sellers have a little amount of scale and scope comparing to huge bottled water production companies (Pepsi, Coca Cola, Nestle Waters, and Group Danone). Those kind...
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...Fruit Juice Industry Report Executive Summary The purpose of this report was to examine the Australian Fruit Juice industry. Research for this report included the IBISWorld Fruit Juice Drink Manufacturing report. The Australian Fruit Juice industry consists of 56 wide ranges of beverages including flavoured water, iced tea, and fruit drink and fruit juice, with 4 major companies representing 71.5% share. The industry had an annual growth of 1.1% in 2008-13, businesses profited over $106.2m creating the industry revenue of $2.0 billion. The major findings indicate the importance of correct advertising and labelling of fruit juice this ensures that no legal matters are taken against the business, how black-label brands hold a 10% share of the market holding a threat to other business with the ability to charge lower prices and committing more shelf space to their own fruit juices and how important it is for business to follow customer trends as they hold the purchasing power. The report also compares and contrasts Boost Juice Bars and Spring Valley Juice marketing strategies, recommending that Boost Juice Bars continue on with their strong marketing mix and Spring Valley focus on their customer trends and target market. The report also recommends the industry swap to BPA free plastic bottles to better enhance their brand and health and safety of their consumers. Table of Contents 1. Introduction …………………………………………………………………………………3 2. Fruit Juice Industry Overview …………………………………………………………3 ...
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