Search results for: Segmentation, Targeting
Red Bull GmbH is a manufacturer of one of the most popular energy drinks Red Bull based in Austria. The company has been founded by Dietrich Mateschitz in the mid 1980’s and the first Red Bull Energy Drink was sold in Austria on April 1, 1987. Today, Red Bull beverages are sold in more than 169 countries and about 60 billion cans of Red Bull have been consumed so far. In 2015 alone, more than 5.9 billion cans were sold, which is an increase of 6.1 per cent compared to the previous year. In 2015, Red Bull GmbH revenues amounted to EUR 5.903 billion, a 15.5 per cent increase compared to the previous year. The company employs 10,997 people in 169 countries. Red Bull pursues product differentiation business strategy and the company differentiates its energy drinks according to its perceived positive effects in terms of enhancing physical and mental performance. Red Bull brand possesses solid competitive advantages in terms of the first mover advantage, high scope of brand recognition, an impressive level of profitability and effective marketing strategy. The marketing message of the brand ‘Red Bull gives you wings’ is effectively communicated to the target customer segment via multiple communication channels in an integrated manner. Along with its own media platforms, Red Bull owns a set of sports teams such as RB Leipzig, FC Red Bull Salzburg, Red Bull Brasil, New York Red Bulls, Red Bull Racing and Scuderia Toro Rosso. Despite the phenomenal success of the company, Red Bull has a set of weaknesses that include its overly expensive prices, limited range of products, portfolio of products that are rightly considered as unhealthy and concentrated production facilities. Red Bull GmbH Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five…
British Airways (BA) is the largest airline company in the UK and it flies globally to more than 400 destinations to airports in nearly 80 countries. British Airways is a part of International Airline Group (IAG) that also owns three other airline brands – Aer Lingus, Iberia and Vueling. The Group also owns 13.55 per cent of the equity of IB OpCo Holding S.L. (“Iberia”) and 86.26 per cent of the equity of Avios Group (AGL) Limited (“AGL”). IAG made a record profit of GBP 1,264 million in 2015. By the end of 2015, British Airways had 39,304 employees globally (Annual Report, 2015). British Airways pursues service differentiation business strategy and differentiates its services via an extensive reliance on digitalization and information technology and high level of customization of service provision. These points represent solid sources of British Airways’ competitive advantage. Major weaknesses related to British Airways include an overdependence on the UK market and low profitability of business operations. At the same time, the airline is presented with the opportunities of forming strategic cooperation with other businesses in airline and catering industries, further engaging in international market expansion and benefiting from synergy via closer integration between IAG’s operating airlines. British Airways Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on British Airways. Moreover, the report contains analyses of British Airways’ business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility. 1. Introduction 2. Business Strategy 3. Leadership 4. Organizational Structure 5. SWOT Analysis 5.1 Strengths 5.2 Weaknesses 5.3 Opportunities 5.4 Threats 6. PESTEL Analysis 6.1 Political Factors 6.2 Economic Factors 6.3 Social Factors 6.4 Technological Factors 6.5 Environmental Factors 6.6…
Tesco PLC is a UK-based global supermarket chain and it has 7817 shops and 517,802 employees around the world. Founded in 1919 by Jack Cohen, Tesco has emerged to become the biggest retailer in the UK and more than 80 million shopping trips are made to Tesco stores each week (Annual Report, 2015). Tesco’s mission statement is “to be the champion for customers – to help everyone who shops with us enjoy a better quality of life and an easier way of living”. Tesco business strategy can be described as cost leadership with a focus on availability, range and customer service. During the financial year of 2015, the group sales amounted to GBP 69.7 billion with the group trading profit of GBP 1.4 billion, however, the company made a net loss of GBP 6.4 billion during the same period (Annual Report, 2015). Along with market saturation, such a poor financial performance has been caused by a series of scandals that include an overstatement of commercial income by GBP 208 million (Rigby, 2015) and the cases of supplier mistreatment. It has been revealed that the supermarket chain demanded a payment of GBP 1 million from one of its suppliers, L’Oreal (Ahmed, 2015) and the company has been found to delay payment to suppliers in order to improve its operational profit margins in 2014 (Simpson, 2016). These scandals caused a severe damage to Tesco’s brand image and replacement of the leadership at the top level. The new leadership headed by a new Chairman of the Board John Allan and new CEO Dave Lewis pledged to restore the trust towards the brand via focusing on the core values that had made Tesco popular in the first place. Tesco PLC Report contains the application of the major analytical strategic frameworks in business studies such…
PepsiCo Inc. is a US-based global food, snack and beverage company that was incorporated in Delaware in 1919 and reincorporated in North Carolina in 1986. Today, PepsiCo brand portfolio includes a range of globally famous brand names such as Pepsi, Lays, Lipton, Doritos, Tropicana, Walkers, Miranda, Cheetos and others. In total, PepsiCo portfolio comprises 22 brands and each of these brands have generated at least one billion USD in retail sales in 2015. Products belonging to PepsiCo portfolio are consumed about one billion times each day in more than 200 countries and territories. PepsiCo’s mission statement is formulated as “to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats” The company employs 263,000 people globally, including approximately 110,000 people within the United States.In 2015, PepsiCo achieved 5 per cent organic revenue growth with a cash flow of more than USD 8.1 billion. About 53 per cent of net revenues were generated from food business, whereas net revenues generated from the beverage businesses amounted to 47 per cent. PepsiCo has major impact in the US economy. The company has been acknowledged as the Number One contributor to retail sales growth in the U.S. in 2015, generating more growth than the next 15 largest food and beverage manufacturers combined. PepsiCo Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on PepsiCo. Moreover, the report contains analyses of PepsiCo’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility. 1. Introduction 2. Business Strategy 3. Leadership and Organizational Structure 4. SWOT Analysis 4.1 Strengths 4.2 Weaknesses…
PepsiCo Inc. is a US-based global food, snack and beverage company that was incorporated in Delaware in 1919 and reincorporated in North Carolina in 1986. Today, PepsiCo brand portfolio includes a range of globally famous brand names such as Pepsi, Lays, Lipton, Doritos, Tropicana, Walkers, Miranda, Cheetos and others. In total, PepsiCo portfolio comprises 22 brands and each of these brands have generated at least one billion USD in retail sales in 2015. Products belonging to PepsiCo portfolio are consumed about one billion times each day in more than 200 countries and territories (Annual Report, 2015). PepsiCo’s mission statement is formulated as “to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats” The company employs 263,000 people globally, including approximately 110,000 people within the United States. In 2015, PepsiCo achieved 5 per cent organic revenue growth with a cash flow of more than USD 8.1 billion. About 53 per cent of net revenues were generated from food business, whereas net revenues generated from the beverage businesses amounted to 47 per cent (Annual Report, 2015). PepsiCo has major impact in the US economy. The company has been acknowledged as the Number One contributor to retail sales growth in the U.S. in 2015, generating more growth than the next 15 largest food and beverage manufacturers combined. PepsiCo Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on PepsiCo. Moreover, the report contains analyses of PepsiCo’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility. 1. Introduction 2. Business Strategy 3. Leadership and Organizational Structure…
Bayerische Motoren Werke Aktiengesellschaft (BMW AG) is the parent company of the BMW Group, a global automobile manufacturer and seller based in Munich Germany. Originally founded as Bayerische Flugzeugwerke AG (BFW) in 1916 the company has emerged as one of the leading brands in the global market of luxury cars. BMW Group owns famous BMW, MINI and Rolls-Royce Motor Car Limited brands. In 2015 the company sold its products to more than 2.2 million people in more than 150 countries, an increase of 6.1 per cent compared to the previous year. BMW Group generated more than 93 billion EUR revenues in 2015, a significant increase of 14.6 per cent compared to the previous year. BMW net profit in 2015 increased by 10 per cent to around 6.4 billion EUR. The company employs 122,244 people globally and it has a hierarchical organizational structure. BMW Group operations are divided into four business segments: automotive, motorcycles, financial services and other entities. The company has 30 manufacturing sites in 14 countries and robotic technology plays an instrumental role in BMW manufacturing process. BMW Group pursues product differentiation business strategy and differentiates its vehicles on the basis of design, performance and advanced features and functionalities. Moreover, high level of integration of information technology and internet, as well as, electromobility represent solid grounds of BMW Group competitive advantage. At the same time, BMW Group has certain weaknesses that include a lack of portfolio diversification with only three brands, a high level of vulnerability to economic crises due to the premium pricing strategy and the lack of strategic partnerships with other businesses within and outside of automobile industry. BMW Group Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model…
Walmart Stores Inc. is a US-based global discount supermarket chain that has more than 11,000 stores in 27 countries and serves nearly 260 million customers each week under 72 banners (Annual Report, 2015). Founded in 1962 by Sam Walton, today Walmart employs 2.2 million people globally and it is the world’s largest retailer. Walmart U.S. delivered net sales of USD 288 billion, a more than 3 percent increase in the fiscal year of 2015 and consolidated fiscal revenues equaled to USD 486 billion (Annual Report, 2015). During the fiscal year of 2015 Walmart revenues grew by more than USD9 billion to nearly USD 486 billion and earnings per share were USD 4.99, a nearly 3 percent increase from the previous year . On a constant currency basis, net sales surpassed USD 141 billion, while operating income increased to more than USD6 billion (Annual Report, 2015). ‘Everyday low prices’ is Walmart’s marketing communication message and this message serves as a guiding principle for Walmart business strategy. Specifically, Walmart strives to achieve cost leadership by the use of economies of scale to a great extent, exercising its huge bargaining power in dealing with suppliers and paying low wages to employees. Walmart Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Walmart. Moreover, the report contains analyses of Walmart’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility. 1. Introduction 2. Business Strategy 3. Leadership and Organizational Structure 4. SWOT Analysis 4.1 Strengths 4.2 Weaknesses 4.3 Opportunities 4.4 Threats 5. PESTEL Analysis 5.1 Political Factors 5.2 Economic Factors 5.3 Social Factors 5.4 Technological Factors 5.5 Environmental Factors 5.6 Legal Factors 6. Marketing Strategy…
Theory can be defined as “a formal logical explanation of some events that includes predictions of how things relate to one another”[1]. Concepts are “collectives used to label certain bits of experience. In other words, they are elementary constructs by which reality is classified and categorised”[2]. Alternatively, concepts are “mental constructs or images developed to symbolise ideas, persons, things, or events”[3] Model can be defined as “a set of ideas and numbers that describe the past, present or future state of something”[4] A framework is “a system of rules, laws, agreements, etc. that establish the way that something operates”[5] A tool is “a thing used to perform a job”[6]. There are many theories, concepts, models, frameworks and tools in the area of business that you will have to use at some stage of your studies. The following are the most popular ones listed in alphabetical order: Change Kotter’s Eight Steps Model Lewin’s Force-Field Theory of Change Lewin’s Model of Change Consumer behavior Behaviorist approach to consumer behavior Cognitive approach to consumer behavior Consumer buyer behavior Consumer decision making process Customer perceived value Economic Man approach to consumer behavior Model of Goal Directed Behavior Psychodynamic Approach to consumer behavior Theory of Trying Corporate Social Responsibility Approaches to CSR Carrol’s CSR Pyramid Code of Ethics Culture Cross-cultural competencies Cross-cultural management Elements of organizational culture Harrison’s Model of Culture Hofstede’s Cultural Dimensions Trompenaars and Hampden-Turner Cultural Dimensions Economics Foreign Direct Investment Inter-industry and intra-industry trade Liberal and coordinated market economies Specialization for developing countries Theory of absolute advantage Theory of comparative advantage Human Resources Management Cognitive Theory of Training Transfer Continuous Professional Development Equity Theory of Motivation Employee training and development Forms of training transfer Frederick Hertzberg’s Two Factor Theory Hertzberg’s Motivation and Hygiene Factors Honey and…
The topic of consumer behaviour is one of the massively studied topics by the researchers and marketers in the past and still being studied. Researchers show different reasons as to why consumer behaviour has been the topic of many academics and researchers. One of the common views is that understanding consumer behaviour has become a factor that has a direct impact on the overall performance of the businesses (Kotler and Keller, 2012). Another view suggests that understanding consumer behaviour has become crucial especially due to fierce competition in retail industry in the UK and worldwide (Lancaster et al, 2002). This chapter will introduce some other areas of research background of consumer behaviour addressing the works of researchers and marketers. Moreover, consumer decision making process, in particular, five stages of consumer decision making process will be discussed in detail. Introduction It is worth noting that consumer buying behaviour is studied as a part of the marketing and its main objective it to learn the way how the individuals, groups or organizations choose, buy use and dispose the goods and the factors such as their previous experience, taste, price and branding on which the consumers base their purchasing decisions (Kotler and Keller, 2012). One of such studies of consumer buying behaviour has been conducted by Acebron et al (2000). The aim of the study was to analyze the impact of previous experience on buying behaviour of fresh foods, particularly mussels. In their studies the authors used structural equation model in order to identify the relationship between the habits and previous experience on the consumer buying decision. Their findings show that personal habits and previous experience on of the consumers have a direct impact on the consumers’ purchase decision in the example of purchasing fresh mussels. They also found that the image of the…
Motivation, personality and perception belong to the list of central themes in the area of consumer behaviour. Maslow’s Hierarchy of Needs (1943) is one of the most significant theoretical frameworks in the area of human motivation and this theory relates to the study of consumer behaviour in a direct way. Maslow (1943) divides human needs into five layers arranged in a hierarchical manner: psychological, safety, social, and esteem needs. In simple terms, the core idea behind Maslow’s Hierarchy of Needs (1943) can be explained in a way that businesses need to appeal to the most immediate and urgent needs of customers in order to generate sales. For example, an individual who is yet to satisfy his or her safety needs is not motivated to purchase products and services associated with high social status, thus individuals belonging to this category should not be targeted for premium range of products and services. From this perspective, Maslow’s Hierarchy of Needs (1943) is related to segmentation, targeting and positioning practices to a certain extent. Personality represents another important physiological variable with certain implications on consumer behaviour and personality elements or traits include self-confidence, sociability, adaptability, deference etc. In-depth knowledge about important aspects of personalities of target customer segment allows businesses to manipulate with elements of marketing mix in general and promotion element in particular in terms of making an effective appeal. For example, marketing research findings of a premium brand watch manufacturing company may indicate that the majority of representatives of target customer segment are highly ambitious individuals aspiring to top management positions in multinational corporations. This information can be used to impact consumer behaviour by engaging in product placement marketing strategy via displaying the use of the premium watch by highly successful senior managers in various media productions. High levels of subjectivity of…
By John Dudovskiy
Category: Consumer Behaviour