Hershev

Under constant pressure from last-growing snack makers of all kinds, Kershey Foods Corp.. has found that domination or the U.S. chocolate candy business is not enough Increasingly, consumers aro passing up Harsftey's candies for chips, sports bars, cereal bars, or granóla bars. To maintain profit targets, hershey has cul casis, dropped weak product lines Such as Ludcn's threat loifiOges, ctit hundreds Of slow-íílling package stzes, impfoved distribution by increasing high-margin conuenignce store presence, and introduced extensions of its strangest ürands such as tlsese's Inside Dal Cups. To more broadly compete and sustain growth, however, ■ Herstiey"? is even considering other new snack products.

Remaining number one calls for action on three fronts. First, the firm must find ways to expand total market demand, Second, the firm must protect its current market share through goad defensive «rid offensive actions. Third, (he firm can try to increase its market share, even if market size remains constant.

Expanding the Total Market

The dominant firm normally gains the most when the total market expands, if Americans Increase their consumption of ketchup, Heinz stands to gain the most because it sells almost two-thirds of the country's ketchup. If Heinz can convince more Americans to use ketchup, or lo use ketch up with more meals, or to use more ketchup on each occasion, Heinz will benefit considerably. In general, the market leader should look for new customers or more usage from existing customers.

NEW CUSTOMERS Every product class has the potential of attracting buyers who arc unaware Of the product or who are resisting ii because of price or lack of certain features. A company can search for new users among three groups; those who might use it but do not tfíiarktí-penetratítui strategy), those who have never used ut (new-market jttgntetii &tnttegy), or those who live elsewhere (geograpliiettl-expntisíoti strategy),

Starbucks Coffee is Otle of the best-known brands in the Wotld. Starbucks is able to sell a cup of coffee for S3 while the si ore next door can only get SI. And if you want the popular cafe iatte, it's S4. Starbucks has more than 7,200 locations throughout North America, the Pacific Rim, Europe, and the Middle East, and its annual revenue for 2ÜU2 topped S3,3 billion. Its Corporate Web site gives n peek into its multipronged approach to growth."5

Star fun: ks purchases and roasts high-quality whole bean coffees and sells them along With fresh, rich-breived, Italian style espresso beverages, a varietv of pastries and confections, and coffee-related accessories and equipment—primarily through its company-operated retail stores. In addiiion, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks prod tices and sells bottled Frappucctflo® coffee drinks and a line of premium ice creams through its joint venture partnerships arid offers a line of innovative premium teas produced by its wholly Owned subsidiary, Tazo Tea Company. The company's objective is to establish Starbucks as the most recognized and respected brand in ihe world. To achieve this goal, the company plans to continue to rapidly expand its retail operations, grow its specialty safes and other operations, and selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels.

..' . : Usage cEin be increased by increasing the le rWor quantity of consumption or increasing the fretpiency ni consumption.

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