Louis Vuitton Case Study

[pic] LOUIS VUITTON INTRODUCTION: Louis Vuitton is a French fashion house founded in 1854 by Louis Vuitton. The label's LV monogram appears on most of its products, ranging from luxury  trunks and leather goods to ready-to-wear, shoes, watches, jewelry, accessories, sunglasses, and books. Louis Vuitton is one of the world's leading international fashion houses; it sells its products through standalone  boutiques, lease departments in high-end  department stores.MISSION STATEMENT: The mission of the LVMH group is to represent the most refined qualities of Western ‘Art de Vivre' around the world. VISION: Be creative and innovative, aim for product excellence, bolster  the  image  of  our  brands  with  passionate determination, act as entrepreneurs, and strive to be the best in all we do. GOAL: To produce much exclusive fashionable goods with good prestigious image that fits into the high class society, products should compulsorily have excellent quality and l ong life.HISTORICAL BACKGROUND: Founded by Vuitton in 1854 and first store in Paris is opened, 1885 – first LV store is opened in London, Oxford street ,1892- Vuitton dies; the company starts selling handbags. TURNING POINT: During 1893 Georges (Louis’s son) begins his campaign to make the company into a worldwide corporation, Georges Vuitton passes away at 1936. Estimates attribute Georges Vuitton with over new 700 new Vuitton designs. BUSINESS STRATEGY: LV uses demographic targeting strategy to target their customers, both men and women.Since LV focuses only on high class people it uses premium pricing and luxury images for attracting them. It also uses â€Å"NEVER ON SALE† strategy to target their customers and its ad can be found only in high end fashion magazines like Vogue & Elle. It also uses Auction houses specializing in art and antiques to sell its goods. The original product line is Monogram and it expanded its product line to monogram denim, monogram multicore, monogram vernis and damier canvas. The Louis Vuitton brand and the famous LV monogram are among the world's most valuable brandsTARGET GROUP: Age: ranging from young adults to seniors (22 – 65 yrs old), focuses mainly on the high class society. AREAS OF BUSINESS: Louis Vuitton mainly targets wines and spirits, fashion and leather goods, fragrances and cosmetics, watches and jewelry. The other brands under Louis vuitton are Bulgari, Celine Guerlain Fendi Donna karan TAG Heuer Guerlain Bon Marche Sephora. Financial information: Sales at Lv rose 19 percent in 2010 and, for the first time, exceeded 20 billion euros Profits soared 73 percent, to 3 billion euros.Revenue from fashion and leather goods, like Louis Vuitton purses, was up 20 percent. Revenue as of 2011 is â‚ ¬2. 5  billion. It was up by 16% from 20. 3 billion euros in the same period in 2010. Organic revenue growth was 14% The Wines & Spirits business group recorded organic revenue growth of 10% in 201 1. Fashion & Leather Goods business recorded organic revenue growth of 16% in 2011, while Perfumes & Cosmetics recorded organic revenue growth of 9% in the same period. Watches & Jewelry group reported organic revenue growth of 23%.RECENT NEWS: For seven consecutive years (2006–2012) Louis Vuitton has been named the world's most valuable luxury brand. Its 2012 valuation is 25. 9 billion USD. According to a Millward Brown 2010 study, Louis Vuitton is the world's 29th most valuable brand, right after  Gillette  and before  Wells Fargo. The brand itself is estimated to be worth over USD $19  billion References: http://80. 251. 40. 59/politics. ankara. edu. tr/ozer/Dersler/Introduction_to_marketing/Case%20Studies/Louis_Vuitton_Moet_Hennessy. pdf http://louisvuitton4u. jigsy. com/entries/general/louis-vuitton-product-line http://www. lvmh. com/

Persuasive Speech on Sex Education at School Essay

Should children be given sex education in schools, or should this be the responsibility of the parents? Thesis Statement: Sex, as serious and important to discuss, is still a very uncomfortable topic for teenagers to discuss; this speech will persuade the audience that sometimes, some things are best discussed at the comfort of a child’s home rather than the company of others. Sex is an important part of life. Whether or not we choose to go for it right away or wait, chances are we will have sex at one point in time, which is why it is better to get the facts straight sooner than later. The problem is though, with sex; we don’t get to say, â€Å"Experience is the best teacher.† If it is, then we could all get away with doing â€Å"it† and could say that we’ll do better next time. In 2010, the Philippine Government has implemented a United Nations-backed sex education program in public schools for children and teenagers. The sex education program has been piloted in selected schools around the country and included topics such as Reproductive Health, HIV/AIDS prevention, and family planning. Most of these topics imply only the abstinence part of sex education. Talking about sex does not make us want to have it. In fact, in health classes, sex is usually associated with abstinence. To be honest, my family has been open into discussing sex issues to us, their children. From time to time, they open discussions about sex, and ask us of our concerns with regards to certain aspects of sex. At first, I found it a whole lot awkward and uncomfortable talking about genital organs and hearing about how babies are made generally. However, as I have continued going to school and is somehow able to acquire the maturity I was expected to have, I have learned that sex should be taken seriously.

Linkage of current Job Performance to Organization's strategy and Essay

Linkage of current Job Performance to Organization's strategy and cuture - Essay Example The value of teamwork emanates from the belief that "best solutions come from working together with colleagues and clients" and this requires relationship, respect and sharing (PricewaterhouseCoopers). As a professional service company, PWC ensures excellence in all its transactions. Given also the nature of the business, PWC promises to take the lead with courage, vision and integrity (PricewaterhouseCoopers). Composed of professionals, PricewaterhouseCoopers personifies and edifies professionalism through adherence to the company policies and technical and professional standards, deliver their commitments, maintaining confidentiality and portraying honesty to their clients. The company also maintains ethical and legal practices in responding to competition. I work as a senior tax consultant so my primary responsibilities are orienting and assisting the clients regarding taxes both national and international through building an excellent relationship with them. I serve clients who want advice in their taxation concerns. The two main scope of my job are consultancy and compliance. Since PricewaterhouseCoopers is a professional service business and since the documents and properties that they handle on customers' behalf are of substantial importance, a good job performance has customer focus. "All Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations" (1 Access). The corporate culture of the company includes professionalism and this means on time, appropriate and excellent service to customers. With my job as a tax consultant, adherence to the company culture necessitates that I make sure that 100% of my clients have sound and organized tax payment, without delay thus without additional costs. A good performance shall also mean zero complain from the customer. Since I am dealing with highly confidential documents, the company expects that "respect the confidentiality and privacy of our clients, our people and others with whom we do business" (PricewaterhouseCoopers). A goof performance specifically necessitates one to "comply with applicable laws, regulations and professional standards in order to maintain the appropriate degree of confidentiality and privacy" (PricewaterhouseCoopers). One of the values of the company is excellence. For the over-all organization, one of the quality management principles is "continual improvement". This includes performance improvement and flexibility to reach quickly to opportunities (1 Access). For an individual, performance rating should include steps taken by the individual to continuously improve, whether through development of an innovative processes and strategies or attendance of formal and informal trainings and schooling to continuously improve in the field. Similar to the performance appraisal in the academe, continuous schooling and training is also important in private professional service firm. To measure excellence it will also be helpful to record the frequency of mistakes and the time duration of work processes. These figures must constantly

ASSIGN2_SMT Coursework Example | Topics and Well Written Essays - 500 words

ASSIGN2_SMT - Coursework Example es out by the soil’s own weight, new sediment fails to replenish the loss casing a loss of 4 feet of land at the mouth of Mississippi every 100 years. 8. Thousands of miles of web like navigation canals are responsible for destroying 10% to 30% of the marshes. These canals are also responsible for an unknown percent of land loss because they cut off marshes from natural water flow, opening them up to salt water intrusion and erosion. 9. Salt water from the Gulf moves inland through canals and waterways killing fresh water plants that can’t stand the salt. As the plants die, the soil their roots hold together is eroded away, destroying marshes and wetlands. 12. From 1932 to 2000, Louisiana lost nearly 2,000 square miles of land bringing Gulf of Mexico near to the resident’s backyards. If nothing is done to stop the current situation, geologists predict an additional 7,000 miles of land could disappear by 2020. 13. New Orleans should not be built again. The coast line of New Orleans is very dangerous and it will soon be destroyed again because the city is protected by the levees which contribute to land loss. 21. Hurricane Katrina occurred because some levees in New Orleans were replaced with walls approximately 2 feet thick to widen the canal which fell during the hurricane (Hurricane Katrina Relief, 2010). 22. The nature or Hurricane Katrina changed dramatically from 28 to 29 August. Studies suggest that this change in nature from tropical storm to a category 5 and then back to category 3, is directly associated with the land fall in Louisiana (Richard D. Knabb, 2005). 25. It is said the damage done by Hurricane Katrina could have been avoided. The state was aware of the intensity of the hurricane and should have taken measures to avoid the death of 1,300 people. It is said that the military lacked cooperation with the Homeland Security and other relief agencies (Fox news, 2006). 26. It is not possible to prove that global warming caused Hurricane

Read 3 Stories and Indentify the Dominant Style of Leadership Essay

Read 3 Stories and Indentify the Dominant Style of Leadership - Essay Example On the second article, â€Å"Taking on Additional Responsibilities†, Jim Madison exemplifies the leader member exchange style or LMX. The theory of this said practice involves the dyadic relationship of leaders with specific key individuals in his group, and provides them more responsibilities and favors than the rest. This inner circle of followers or in-group, as represented by Shirley, Patti, Ted and Jana, are inclined to prove themselves to their leader by working harder and show commitment and loyalty to the organization, hence preparing them to be suitable candidates to take the role of the leader in the future. On the other hand, the out-group are the followers that prefer to work without expecting any indebtedness from the leader in return and regard the later with outmost formality. Lastly, Dr. Cook the article â€Å"Students Dig It† illustrates a transformational style of leadership. A transformational leader demonstrates the ability to inspire and motivate people in completing a task through leading by example. This type of leader listens to what his followers are thinking and ensure their well-being in every aspect. In return, the followers’ morale increases while their talents developed and eventually accomplishes their tasks with minimal supervision. (Martindale,

Globalization of Financial Markets SLP Essay Example | Topics and Well Written Essays - 500 words

Globalization of Financial Markets SLP - Essay Example nd of the Second World War, organizations such as the International Monetary Fund, the International Bank for Reconstruction and Development and the GATT has spearheaded efforts for trade and development the world over (Caruana, 2007). Thus the goal of globalization is fast becoming a reality. The GATT gave way to the WTO or World Trade Organization on January 1, 1995. The WTO is a better representative of world trade with a membership of more than 150 countries of all sizes from various parts of the globe. However, globalization has been regarded as a two edged sword by some developing nations. They state that opening their borders to the more developed nations result in a gain to the developed economies while putting themselves at a loss. This is because the international franchises fast take over the new territories. People are attracted to them and spend a lot of money there, resulting in capital outflows to the developed world. There is a strong case for protecting the home industries from being ruined by opening the doors to globalization. Also the membership of the WTO requires adherence to the principles of non-discrimination, reciprocity, binding and enforceable commitments and transparency, the larger and more stable economies generally get more favorable status . Standards of quality control demanded by developed nations like the ISO certification may be hard to achieve by less technologically developed nations (Berniker et al., 2001). Let us take the case of Brazil. Brazil is one of the world’s leading economies and has the fastest growth in Latin America. It imports machinery, oil, electrical and transport equipment, chemicals, electronic goods and auto parts (CIA World Factbook, 2011). It exports steel, paper, iron ore, soybeans and coffee. China, the USA and Argentina rank among its best trading partners in terms of volume of trade conducted with them. Exposure to world markets has undoubtedly affected the price of coffee and soybeans both at home

Business Law Essay Example | Topics and Well Written Essays - 750 words - 3

Business Law - Essay Example This means that there is unlimited liability and the owner will be responsible personally to repay any debts that may arise from the business. An electrical contracting business would require large amounts of capital to set up and then run the day to day activities. Such limitless capital would not be available with a single person who plans to open a new business, thus he may resort to borrowing or taking loans from lenders. This too is not a guaranteed way to acquire capital as lenders would be unwilling to invest in a new business controlled by a single person with unlimited liability. They would want the personal assets of the owner to cover their loans so that in case of default in the repayment, the assets might be used to recover the loan provided. Secondly, an electrical contracting business needs sophisticated machinery and constant supervision. A single person will not be able to control and supervise 24/7, causing mismanagement which the competition can take advantage of. However, a sole proprietorship is easy to form and dissolve as it does not include legal formalities for starting and closing a business. Although a business such as an electrical contractor would require a government license giving permission to produce and supply electricity which would require certain conditions to be fulfilled. A sole proprietor does not need to share his profits with anyone and he pays minimum income tax as he is not a partnership or a corporation which pay a large proportion of their profits in tax. Electrical contracting business as a Partnership An electrical contracting business being set up as a partnership means ownership is shared between 2 to 20 people. This means that the business will have greater capital and credit resources. A partnership is governed by the law and follows a written document known as the partnership agreement. This document contains all the provisions necessary for smooth running of the business for example managerial duties, share of profits etc. A partnership too can be formed relatively easily as compared to a company. Forming a partnership for conducting an electrical contracting service would require a government license. This license can be achieved relatively easily as compared to sole proprietor business. A partnership consists of two or more thus each person can utilize their managerial skills and benefit the business. For example a partner who is an electrical engineer can work on the machines while another partner who is an accountant can manage the accounts of the business and ensure smooth running. A partnership means the risk of the business is spread over the numerous partners thus one person does not have to take the burden. However, a partnership has unlimited liability as well. This means that all the personal assets of the partners are at risk and a bad decision by one partner can result in loss for all the partners. Being a partnership there is still a limit to the amount of capital that ca n be acquired thus the business has a limitation on the size. Lastly, a partnership will be subjected to large amounts of taxes under the law. A partnership can acquire several types of tax id numbers, e.g.  A Federal EIN Number - The Federal Tax Identification Number is used to identify a business entity and is required for employers and corporations as well as partnerships. A State Sales Tax Id - Sales tax

Social networking sites help students do better at school Research Paper

Social networking sites help students do better at school - Research Paper Example There are some students who find physical-social contribution and interaction difficult. Engaging these students through an online platform can make studying easy for them (Osborne). Dialogue and collaboration are hampered by the introduction of social networking on the learning environment. Collaboration and dialogue are critical to the one-to-many and one-to-one models. In the many-to-many model which is used in social networking, the point of attention shifts from the collaborative to cooperative learning and from the group level to an individual. While collaboration seeks that the group moves together, cooperation seeks individual affinity and flexibility in a learning environment. George Middle School, in Portland developed a program that encompassed social networking and school routine. Through the program, they discovered that grades increased by 50 percent. 20 percent of the students completed extra assignments at will. Through the program, they discovered that integrating social networking with the education system lowered absences by 33 percent. An article in The New York Times explains that, Erin Olson  a teacher uses social media to improve class participation. The students use a website where they post their feelings and thoughts about the classroom discussion. Olson appreciates the arrangement because students become more engaged in learning and participate when they others post their views than when done in class (Sang). Students and other individuals join social networks to associate and engage with others who are like minded and in need of learning similar things. Some schools impose learning management systems on their students. Many students are of habit of avoiding using the school-managed learning environments and systems because they are either difficult to use or irrelevant to the basic daily learning needs. Such a response from students shows that a loose network of composed of willing participants guarantees

Analyze readings and tv episode Essay Example | Topics and Well Written Essays - 1500 words

Analyze readings and tv episode - Essay Example However, it is noticeable that the recent trend represents a paradigm shift in celebrity development. What is apparent is a programmatic shift in the way the contemporary celebrity is developed through concurrent media – television and internet-based branding in particular. Thus, no longer are only the elites with their extraordinary levels of consciousness considered as an important pool of personnel to be regarded for mainstream celebrity, as Hearn illustrates, â€Å"Psychoanalytic  concerns about unconscious  identity formation are for the most part, left to the side here, as are any claims about essential human nature† (198). This has paved way for Ordinariness amongst the recent wave of celebrity development, which, rest assured, has always enjoyed a certain repertoire amongst the discourses of mass celebrities along with denoting essential ingredients of various film and televised content (Bonner). Turner refers to this phenomenon as the demotic turn (153-154) which signifies a convergence of ordinary and celebrity. While there is inherent contradictoriness in the discourses of celebrity itself, as a celebrity by nature cannot be ordinary once elevated by mass appeal, this contradiction is what enhances the apparent widespread acceptance and validation of reality tv shows and the celebrity development it engages in. ... sess singing skills to audition and be judged by a panel in order to partake further in various singing formats with the promise of a reward for the winner in the form of a contract with a leading record label. The participants are initially screened by a panel but later voted on by the general population in a seemingly democratic process of selection. The particular episode in question was part of season 11 episode 1, and was aired on January 18th, 2012. Analysis Turner’s principles of demotic turn were primarily aimed at the understanding of recent celebrity proliferation in mass media. His focus was to determine how self-branding techniques in popular media such as reality TV shows, DIY internet websites, radio talk shows etc. serve to exacerbate the systematic popularization of ordinary people in order to classify them celebrity status. His acknowledgement of the self is characterized by self-recognition, a distinct identity that is argued in the public’s redeeming eye, accepted and promoted. Reality TV accounts for a certain kind of recognition of self as well, as witnessed in American Idol over its tenure. Participants occasionally have to make their case in front of the judges in terms of qualities other than singing, which the show wholly comprises of. Turner cites William Hung as an example, who although never qualified past the screening process, argued that he did not have any training in singing or dancing which he seemed to believe identified him as unique (154). However, he most certainly classified as entertainment, and was rewarded by the show in subsequent re-runs of his audition as part of the show’s promotion. He engaged in a modern form of promotion that Hearn describes as a by-product of self-branding, a methodic interpretation of brand

Technology in Place Prior to Disaster Event (Who, What, When, Where, Essay

Technology in Place Prior to Disaster Event (Who, What, When, Where, Why) - Essay Example It is evidently clear from the discussion that hurricane research succeeded in prediction and therefore saving lives. People would salvage their property on their own without warning. Those who made it survived and those who were not able to would die. But all the same, New Orleans would not be deserted. People came back after the hurricane to settle down again. Prior to the hurricane, people did not build high walls and canals to drain water. It was not thought of until a research was done after the hurricane. Disasters would strike again and again. People would move away when disaster strikes and come back when it had gone. It is in Virginia Key, FLA†¦Ã¢â‚¬ ¦. that an accurate hurricane forecasting may be found in the wreckage of its worst failure. Many people died because weather officials did not recognize the power dynamics of the storm and failed to warn residents until it was too late to do anything. Homes and businesses were destroyed. Bodies floated in Galveston Bay for days. This is an example of what used to happen long before current technology was used in forecasting and therefore preparing people for such disasters. After previous hurricanes, levees, seawalls, pumping systems and satellite hurricane tracking provide a comfort safety margin that has saved many lives. Modern technology and engineering was, however, an alarming fact. â€Å"In the generations since those storms menaced, champagne’s ancestors, South Louisiana has been growing more vulnerable to hurricanes, no less†. These flood protection efforts here caused sinking land and coastal erosion. These have opened dangerous ways for relatively weak hurricanes and tropical storms to affect new areas inland.

Carrying a Concealed Handgun Essay Example for Free

Carrying a Concealed Handgun Essay Carrying a concealed handgun is widely argued. It is legal in 49 states. Many people think carrying a gun will increase crime and start public shootouts. This is not the case. Carrying a concealed handgun is okay. It is also a right protected by the Constitution. In District of Columbia v. Heller (2008), the Supreme Court ruled that the Second Amendment protects â€Å"the individual right to possess and carry weapons in case of confrontation. This meaning is strongly confirmed by the historical background of the Second Amendment. † Handguns aren’t given to just anyone that walks in. The Gun Control Act of 1968 limits who can receive a handgun. Criminals cannot receive permits to carry a concealed handgun. Law enforcement agencies do background checks to ensure they are allowing the right people to carry a handgun. The mentally ill are also included in the Gun Control Act. If someone commits a crime with a legal carry permit, they would do it whether the handgun was legal or not. This doesn’t happen often though. According to ConcealedGuns.ProCon.org, only .003 % of murders between May 2007 and March 2010 were committed by handgun permit holders. The website also shows that the â€Å"general public is 5.7 times more likely to be arrested for violent offenses and 13.5 times more likely to be arrested for non-violent offenses, than concealed carry weapon permit holders.† Concealed handgun permit holders are, for the most part, good people. Some do lose their permits but permit revocation rates are very low. The Wisconsin Policy Research Institute Report, Concealed Carry Legislation, shares this data: -In 2004, Utah had a permit revocation rate of .4% -From 1986-2003, Kentucky had a permit revocation rate of .8% -In 2001, Indiana had a permit revocation rate of .2% -From 1995 to 2005, NorthCarolina had a permit revocation rate of .1% -From 1995-2006, Virginia had a permit revocation rate of .2% -From 1994-1996, Wyoming had a permit revocation rate of .2% -From 1996-1999, Oklahoma had a permit revocation rate of .2% This data clearly shows that only a very small group of people do something to have their permit revoked. It also means that a vast majority of permit holders are responsible, law abiding citizens. The handgun itself doesn’t have to do the defending. If a criminal knows that individuals can carry handguns, they are less likely to attack, which helps the public as a whole. If someone carrying a handgun and is attacked, the attacker usually retreats when the handgun is drawn. The police do not have to protect us. According to www.nraila.org, the Warren v. District of Columbia (1981) court ruled that â€Å"official police personnel and the government employing them are not generally liable to victims of criminal acts for failure to provide adequate police protection . . . a government and its agents are under no general duty to provide public services, such as police protection, to any particular citizen.† Also, the court ruled in Bowers v. DeVito (1982) that â€Å"[T]here is no constitutional right to be protected by the state against being murdered by criminals or madmen.† The government cannot guarantee the safety of everyone. Personal protection is important. Carrying a handgun also makes the carrier feel safe. Americans should not be scared going outside at night or walking through certain neighborhoods. Concealed handguns could also aid in public shooting sprees. If the individuals in the Virginia Tech or any other public shooting massacre had been armed, the spree could have ended much sooner. Some believe the massacre would have been made worse but what could be worse than a 32-victim massacre? Most of the victims were of legal age to possess a firearm. If they had been allowed a handgun on campus, could lives have been saved? I strongly believe so. With that said, this doesn’t mean people should run around as vigilantes hunting down criminals. The concealed carry permit holders are not the police. They do not have the authority to shoot just anyone. There are laws that make sure this doesn’t happen. Handguns would just be used for defense. Although you can’t run around fighting crime, your situational awareness while carrying a handgun will go up. You know that you are carrying and anyone else can be carrying too. This situational awareness can help you deal with bad situations or even prevent them. How do schools fit into this? Legally, a person with a concealed handgun cannot be within one thousand feet of a K-12 school. For the most part, concealed weapons are not allowed on college campuses either. This creates a large upset in the college community. Very few colleges have allowed students to carry concealed weapons. There have been no problems. Twelve schools, from Virginia, Colorado, and Utah, have allowed students with handgun permits to carry them on campus. Not one of these schools has had a handgun-related problem. This includes murder, suicide, threats, and handgun theft. Some believe that carrying handguns will distract students from the educational environment. These handguns are concealed. People should not know if you are carrying one or not. The students aren’t distracted in their daily lives by handgun permit holders so why should the college campus be any different? The same goes for the argument that guns and crowded schools don’t mix. Public areas are crowded too. College students are adults. A twenty one year old who is not in college can have a concealed handgun so why can’t an individual who is in college have one? They know what they are doing. They still have to follow the handgun laws like any other permit holder. College life may be defined with alcohol and drugs but the law doesn’t make exceptions for college parties. If an individual is intoxicated, they cannot be carrying their weapon. In the end, handguns are not a bad thing to carry. They can protect you in many ways. Crime rates may drop if criminals are too scared to attack. Carrying a concealed handgun is a right given to Americans. It should not be wasted. Almost all legal permit holders are law abiding. Guns can help.

Procter Gamble Company Merger Case Study

Procter Gamble Company Merger Case Study The project deals with the analysis of mergers and acquisitions in an FMCG sector. Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. A merger is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. This project deals with the merger of Procter Gamble and Gillette, acquisition of Balsaras hygiene and home product by Dabur and Acquisition of Nihar brand from HLL by Marico. The methodology deals with the various ways in which the data for this project was collected. Due to the limited scope of information and time constraints, secondary and not primary data sources has been used including journals, articles, reference sites, etc. The project guide proved very vital in the successful completion of my report. The next section deals with the individual introduction of both companies involved in the process of merger. It further includes the different terms of the merger and various synergies created through the merger. Furthermore the next section deals with scenario after the merger and analysis of financial statements of acquiring company post merger. Building a brand from scratch in the FMCG space can be quite an expensive exercise. Mature categories such as personal care or household products are already dominated by one or two strong incumbents and wresting market share away from them is quite a challenge. With growth rates in markets such as skin care, hair care and household products suddenly moving into high gear, companies also cannot afford to lose time on the trial-and-error method that usually accompanies new launches. Given this scenario, domestic players seem to view brand acquisitions and mergers as the quickest way to step into new categories and acquire a well-rounded product basket, without squandering their surpluses on brand-building expenses. Market shares apart, many of the buyouts have been motivated by the need to acquire better distribution reach whether within India or overseas. Introduction I. MERGER A merger is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. A merger occurs when two or more companies combines and the resulting firm maintains the identity of one of the firms. One or more companies may merge with an existing company or they may merge to form a new company. Usually the assets and liabilities of the smaller firms are merged into those of larger firms. Merger may take two forms- Merger through absorption Merger through consolidation. Absorption: Absorption is a combination of two or more companies into an existing company. All companies except one lose their identity in a merger through absorption. Consolidation: A consolidation is a combination if two or more combines into a new company. In this form of merger all companies are legally dissolved and a new entity is created. In consolidation the acquired company transfers its assets, liabilities and share of the acquiring company for cash or exchange of assets. II. ACQUISITION A fundamental characteristic of merger is that the acquiring company takes over the ownership of other companies and combines their operations with its own operations. An acquisition may be defined as an act of acquiring effective control by one company over the assets or management of another company without any combination of companies. III. TAKEOVER A takeover may also be defined as obtaining control over management of a company by another company.Merger of Procter Gamble Company and Gillette CompanyAbout the merging companies: Procter Gamble Procter Gamble Company is asoap opera. PG was named 2008 Advertiser of the Year by Cannes International Advertising Festival. Effective July 1, 2007, the companys operations are categorized into three Global Business Units with each Global Business Unit divided into Business Segments according to the companys March 2009 earnings release. Beauty Care Beauty segment Grooming segment Household Care Baby Care and Family Care segment Fabric Care and Home Care segment Health and Well-Being Health Care segment Snacks, Coffee, and Pet Care segment PG has gone into an aggressive mode. It has launched two new variants on 2nd Dec 2009, one in the detergent segment, which is called Tide Naturals and also another one in skin care segment under the Olay brand. Gillette Company The Gillette Company is a globally focused consumer products marketer that seeks competitive advantage in quality, value-added personal care and personal use products. It is the world leader in the mens grooming product category as well as in certain womens grooming products. Although more than half of company profits are still derived from shaving equipmentthe area in which the company startedGillette has also attained the top spots worldwide in writing instruments (Paper Mate, Parker, and Waterman brands) and correction products (Liquid Paper), toothbrushes and other oral care products (Oral-B), and alkaline batteries (Duracell products, which generate almost one-fourth of company profits). Gillette maintains 64 manufacturing facilities in 27 countries, and its products are sold in more than 200 countries and territories, with more than 60 percent of sales occurring outside the United States. The Merger: On October 1, 2005, Procter Gamble finalized its purchase of The Gillette Company. As a result of this merger, the Gillette Company no longer exists. Its last day of market trading symbol G on theOral-B, among others, which have also been maintained by PG. The Terms of the Merger: Date of merger: The merger came into effect from July 1st, 2007. The new company formed : The Gillette Companys assets were initially incorporated into a PG unit known internally as Global Gillette. In July 2007, Global Gillette was dissolved and incorporated into Procter Gambles other two main divisions, Procter Gamble Beauty and Procter Gamble Household Care. Gillettes brands and products were divided between the two accordingly. The Share Swap Ratio : Under the deal announced, Procter Gamble will pay 0.975 share of its common stock for each share of Gillette common stock. On Wall Street, shares in Gillette closed up nearly 13%, while PG slid 2.1% after the announcement. The Management: Gillettes chief executive James Kilts is to join the board of the merged company, becoming PG vice chairman, while PG chief executive A.G. Lafley will remain chief executive of the merged company. Examining the merger: Type of merger: Procter Gamble being number one in consumer products went into acquiring and merging with other companies like, Germanys Wella AG hair care line in 2003 and it also acquired Clairol for its hair-care lines and Iams Co. for its pet foods. The merger in question; between Procter Gamble and Gillette is thus a merger where the acquiring company is expanding in size of operations and also product offerings. This is thus a horizontal merger. Operational Synergies of the merger: The merger of the two companies will create the worlds largest consumer products conglomerate. Both companies are strong, diversified companies, so one wonders what uncaptured synergies there could be here. PG is adept at taking innovations from one product and transferring it to another product, so there may be opportunities to improve existing Gillette products. In addition, the companies are stating that the merger will give them more negotiating power with the most powerful buyer of consumer products. The deal would give the company even more control over shelf space at the nations retailers and grocers, real estate that is at a premium. Executives at the companies said they believe theyll both be able to grow faster together than separately, with PG opening doors for Gillette in markets such as China and Japan while Gillette bringing PG some product segments that are growing faster than the companys overall current portfolio of products.The merger will make PG the worlds biggest household goods maker, pushing Unilever into second place Financial Synergies: The merger would create a company with revenues of more than Rs.2700 billion that would have even greater clout against mass-market retailers like Wal-Mart Stores Inc., which have been pressuring consumer product suppliers to keep costs low. Because of expectations from the deal, PG raised the annual revenue growth outlook to 5 to 7 percent, rather than its earlier target of 4 to 6 percent. The companies said they expected cost savings and synergies of about Rs.630 billion to Rs.720 billion US over three years. PG and Gillettes combined market capitalization of about Rs 8325 billion US, would be by far the largest in the FMCG sector. HR Synergies: As part of the cost-cutting that would follow the deal, the merger would result in the elimination of about 6,000 jobs, or 4 percent of the combined work force of about 140,000. It said most of the cuts would come from eliminating management overlaps and consolidation of business support functions. Gillettes chief executive James Kilts is to join the board of the merged company, becoming PG vice chairman, while PG chief executive A.G. Lafley will remain chief executive of the merged company. Scenario Post Merger: Procter Gamble is the worlds largest producer of household and personal products by revenue, with its products reaching 4 billion people worldwide and its product line includes 23 brands across beauty, healthcare, and food including Tide detergent, Pampers diapers, and Gillette razors, that generate over $1 billion in revenue annually, with the companys total revenue at Rs.3555 billion in 2009.In 2005, PG expanded its portfolio to include razors and blades as well as batteries with its acquisition of the Gillette Company.The companys 2010 first quarter net income fell 1% to Rs.148.95 billion (Rs.46.35 per share) as higher prices offset lower sales volumes and foreign exchange effects, beating analyst expectations of Rs.43.65 per share. Revenue fell 6% to Rs.891.45 billion, though organic sales rose 2%. One of the key areas of growth for the company is in emerging markets worldwide. Sales in developing nations have increased steadily from 20% of total revenue in 2002 to 32% in 2009.PG already owns large and growing market share in countries includingglobal economic downturn, PG has announced it will focus its growth strategy on emerging markets, opening almost all of its 20 new manufacturing facilities outside its established markets. Procter Gamble attempts to maintain its competitive edge by focusing on product innovation. To this end, PG spends almost twice as much on research and development spending Rs.90 billion in 2009 as its closest competitor, Unilever, spent about Rs.58.5 billion USD in 2008.Through itsConnect + Developinitiative, PG looks to bring in new product ideas from outside the company. Connect + Develop has led to the development of 42% of new PG products in recent years. In fiscal 2009, PGs Net sales fell 3% to Rs.3555 billion driven by a 3% decline in unit volume and a 4% decline in net sales from the rising US dollar. Organic sales, a closely watched figure which excludes the impact of acquisitions, divestitures, andforeign exchange, increased 2%, which is below its target organic sales range of 4-6%.Earnings for fiscal 2009 increased 11% to Rs.603 billion. In July 2009, CEO A.G. Lafley stepped down from his post after 29 years with Proctor Gamble.He was succeeded by current COO Bob McDonald.The company expects sales to be up 0 to 3% in fiscal 2010,with sales back up in the fall of 2009, fed by price cuts, new products, and value-focused promotions. PG divides its business into three Global Business Units (GBUs) that develop and produce products and its corporate group which handles the operation and administration of the company. Beauty (33% of 2009 sales, 36% of 2009 net income): The Beauty GBU includes all hair and skin products, medications, razors, electric shavers, and batteries. This business unit includes several product lines acquired when the PG bought consumer products company Gillette in 2005. Proctor Gambles global market share in blades and razors is 70%, primarily centered on its Mach3, Fusion, Venus, and Gillette brands.In June 2009, PG further expanded its mens grooming business with the acquisition of the high-end shaving company The Art of Shaving and the mens skin care line Zirh. Health and Well-Being (21% of 2009 sales, 24% of 2009 net income): The Health and Well-Being GBU provide oral care, feminine health, pharmaceuticals, snacks, coffee, and pet care products. In oral care, the company has the number two market share position at 20% globally.In potato chips, the companys Pringles brand holds a market share of approximately 10%. Household Care (46.8% of 2009 sales, 43% of 2009 net income): The Household Care GBU manufactures a wide range of products from laundry detergent to diapers. The companys baby care market share in 2008 was 29%. Business Growth and Divestitures Folgers Sale On June 4, 2008, PG sold its Folgers coffee unit toJ.M. Smucker Companyfor Rs.132.75 billion.As part of the deal, PG shareholders will receive a 53.5 percent stake in Smuckers and the company will assume Rs.15750 million of Folgers debt. Gillette Acquisition Procter Gamble acquired Gillette in 2005 for over Rs.2250 billion in its largest acquisition to date. In 2004, the last full year before the acquisition, Gillette generated over Rs.450 billion in sales, about Rs.270 billion of which came from razors and Duracell and Braun products and the remainder sourced from the Oral-B brand, which was moved into the Health Well-Being segment. A key piece of the acquisition beyond Gillettes product lines was its distribution network and supply chain. Gillettes distribution network and supply chain in emerging markets had been extremely successful for Gillette and, once acquired, has worked to complement PGs own distribution network. Sale of Pharmaceutical Unit In 2009 PG sold its pharmaceutical unit to Warner Chilcott Plc for Rs.139.5 billion in cash.The company expects to book a 43 cent per share earnings boost in Q2 of fiscal 2010 as a result of the sale.The deal allows PG to focus on its personal care, beauty, and household product divisions. In 2006, the company started winding down its discover-phase pharmaceutical products in favor of licensing late-stage compounds, and announced in 2008 it would exit the drug industry entirely. PG 2008 Net sales by Geographic Region(Post merger) PG has a well-established market presence in developed countries such as the United States and Western Europe and is looking to its presence in emerging markets. In fiscal 2009, 32% of total net sales came from developing nations,a figure that has increased steadily from 2002 when sales in developing nations accounted for only about 20% of total revenue (approximately Rs.360 billion). In China and Russia, PGs market share has been consistently increasing in the past five years as Procter Gamble has put an increased emphasis on establishing its products in those markets. In 2008, the companys distribution network reached 800 million people in China and 80% of the population in Russia. PG has created products designed specifically to target developing nations. The average Mexican spends about Rs.9000 a year on PG products, Chinese per-capita spending is only about Rs.135 and India per-capita spending Rs.45.Increasing sales in China and India to the levels in Mexico would add Rs.1800 billion in sales to the companys overall revenue. Research Development focuses both inside and outside the company In 2009, PG spent approximately Rs.91.8 billion on Research Development, nearly Rs.45 billion more than its closest competitor, Unilever.The two most important factors in PGs innovation process are its practice of consumer demand research and its Connect and Develop RD structure. First, when entering new markets, PG sets up in-home visits with consumers in order to fully understand the needs and desires consumers have for household and personal products. This way, PG gets directly to its customers and is able to cater to their needs. PG also incorporates consumers input into the RD process through its Connect and Develop initiative. Through Connect and Develop PG has an online interface set up where people can submit product ideas and provide input on topics that PG places on the web-portal. PG staff then sorts through the ideas and work with the most promising ones. This process is not responsible for the entire RD that PG does, but approximately 42% of new products in the last sev eral years were influenced by or originated from Connect and Develop. Tide Stain Release, a stain-removing detergent released in July 2009, has garnered 10% market share in the US as of November 2009.The Bounce Dryer Bar, an automatic laundry freshener released in August 2009, has captured 7% of the North American fabric sheet market as of November 2009. Commodity Prices A diversified consumer products manufacturer, PG depends heavily on a wide basket of global commodities for manufacturing its goods, the prices for which have risen nearly 50% since 2002. Nearly half of the companys cost of goods is directly related to commodity goods. The company has increased prices due to higher costs of oil and other raw materials. In its conference call, the company stated that it expected raw material costs to increase Rs.135 billion in 2009.The company has raised prices on Cascade dishwashing detergent, Iams pet food, and Gillette razors to counter the increasing cost of oil in the first half of 2008.PG instituted broad price adjustments in Q1 2010 to close widening price gaps in several businessesincluding North American laundry, tissue, andtowel, and several Eastern European markets. Competition Procter Gamble provides the broadest and biggest portfolio of products in the household and personal care industry with 24 billion-dollar brands. PG generates 43% more revenue than its closest competitor,LOreal, and Reckitt Benckiser. Here are somekey factsabout the two firms. Cincinnati-based Procter Gamble was established in 1837 and made its name selling soap and candles to U.S. government soldiers during the civil war. Boston-based Gillette spends around Rs.2700 million annually on advertising. In May the razor-maker paid a reported 40 million pounds (Rs.3393 million) to sign international soccer star David Beckham to a three-year deal as its global face. Procter Gamble employs a workforce of 110,000 worldwide and has a market capitalization of Rs.6345 billion. Gillette employs 29,400 employees worldwide and has a market capitalization of Rs.2025 billion. Gillettes profit beat market expectations last October after Hurricane Ivan spurred the buying of Duracell batteries. Limitations: Due to lack of data the financial statements analysis of Procter Gamble was not carried out. Conclusion Thus the acquisition and integration of Gillette was the largest and most successful in the history of Procter Gamble. PG acquired Gillette, which is best known for its shaving products, in 2005 for Rs.2565 billion. The merger between Procter Gamble and Gillette is a horizontal merger where the acquiring company is expanding in size of operations and also product offerings. The merger created various synergies like financial, operation and human resource synergies. After the merger Procter Gamble integrated systems in 26 countries, spanning five geographic regions, representing about 20% of sales. Gillette is a catalyst that makes PG a better brand-builder and a stronger innovation leader. There is no doubt that PG and Gillette are stronger together than alone, and both the companies together can deliver accelerated growth targets over the balance of the decade. Acquisition of Balsarashygiene and home product by Dabur About the merging companies: Dabur Company Dabur India Limitedis the fourth largest FMCG Company in India and Dabur had a turnover of approximately Rs.2,834 Crore Market Capitalisation of over Rs 10,000 Crore, with brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur has global presence in 50 countries; products are available in the markets of Middle East, South-East Asia, Africa, the European Union andAmerica. Dabur is an investor friendly brand as its financial performance shows. The companys growth rate rose from 10% to 40%. The expected growth rate for two years was two-fold. Theres a great sense of responsibility for investors funds on view. This is a direct extension of Daburs philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall. The company, through Dabur Pharma Ltd. does toxicology tests and markets ayurvedic medicines in a scientific manner. They have researched new medicines which will find use in O.T. all over the country therein opening a new market. Dabur Foods, a subsidiary of Dabur India is expecting to grow at 25%. Its brands of juices, namely, Real and Active, together make it the market leader in the Fruit Juice Category. Dabur Ranked AmongIndias Most Trusted Brands of 2007 By Economic Times-Brand Equity. Products of Dabur Ø Under health care products it has brands like Hajmola, Pudin Hara, Dabur Chyawanprash, Glucose D, Dabur Lal tail,etc. Ø In home care range consist of product like Odinil,Odomos,odopic,etc. Ø Under personal care range it has product like Vatika,Gulabri,Dabur Red Toothpaste,etc. Ø In food range it has brands like Real Active ,HOMMADE-range of ready made pastes, soups, coconut milk tomato puree Ø Dabur has guar gum plant,a natural gum used in foods industrial applications. Ø Dabur also produces ayurvedic medicines. Balsara Company The Balsara Group manufactures and markets its products, in India and Internationally. The Group has a domestic annual sales turnover of Indian Rs. 2 billion, and a rapidly growing international sales turnover of Indian Rs. 350 million. The Group is professionally managed, with manufacturing, sales, distribution and administrative facilities located throughout India, in addition to its international operations. In the Indian market, 60% of the Balsara Groups sales turnover of Indian Rs. 2 billion comes from Personal Hygiene Products (Promise, Babool and Meswak oral care ranges) and 40% is derived from Household Products (Odomos insect repellents, Odonil Air Fresheners, Sani Fresh toilet cleaners and Odopic dish washing products). Balsara has a wide national sales and distribution system that makes products available in 10, 54,000 retail outlets. The system is supported by a distribution network of 4 Zonal Offices, 13 Branches, 24 Regional Warehouses, and 1700 Distributors in 1500 towns. The mission of the Balsara Group of Companies is to be a leading provider of superior quality personal and household products, ingredients and packaging materials to consumers and customers on the Indian sub-continent and throughout the world. The Acquisition: On January 27, 2005 Dabur India today announced the acquisition of Balsara Hygeine and Home Care businesses for Rs. 143 crores and said it would look at more buyouts to capitalise on the consolidation in the sector. The company board of Dabur approved the acquisition of controlling stake in three Balsara group companies Balsara Hygiene Products, Balsara Home Products and Besta Cosmectics. With the acquisition of the Rs. 143-crore Balsara Group in an all cash deal, Dabur India will have oral care brands such as Promise, Babool, Meswak; mosquito repellents such as Odomos and household products such as Odonil and Odopic under its fold. Dabur India will acquire the entire promoters stake in the three companies 99.4 per cent in Balsara Hygiene, 100 per cent in Balsara Home Products and 97.9 per cent in Besta Cosmetics. The Terms of the Acquisition: Date of the acquisition: The merger came into effect from 1st April 2006. The new company formed : According to the deal Dabur will take full control of Balsaras entire brand portfolio which consists of oral care brands like Promise, Babool, Meswak; mosquito repellants like Odomos and household products like Odonil, Odopic. The deal also includes takeover of Balsaras operations consisting of three manufacturing facilities at Kanpur, Silvassa and Baddi and about 600 employees. Dabur India will also acquire the entire promoters stake in the three companies 99.4 per cent in Balsara Hygiene, 100 per cent in Balsara Home Products and 97.9 per cent in Besta Cosmetics. The Share Swap Ratio : Under the deal announced, Dabur India Ltd will acquire Balsaras hygiene and home product businesses in an Rs 143 crore all-cash deal. While Rs 120 crore will be funded through internal accruals, the balance Rs 23 crore will be raised through debt. Examining the Acquisition: Type of merger: The Rs 1,300-crore fast-moving consumer goods major Dabur India acquired Mum Procter Gamble Company Merger Case Study Procter Gamble Company Merger Case Study The project deals with the analysis of mergers and acquisitions in an FMCG sector. Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. A merger is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. This project deals with the merger of Procter Gamble and Gillette, acquisition of Balsaras hygiene and home product by Dabur and Acquisition of Nihar brand from HLL by Marico. The methodology deals with the various ways in which the data for this project was collected. Due to the limited scope of information and time constraints, secondary and not primary data sources has been used including journals, articles, reference sites, etc. The project guide proved very vital in the successful completion of my report. The next section deals with the individual introduction of both companies involved in the process of merger. It further includes the different terms of the merger and various synergies created through the merger. Furthermore the next section deals with scenario after the merger and analysis of financial statements of acquiring company post merger. Building a brand from scratch in the FMCG space can be quite an expensive exercise. Mature categories such as personal care or household products are already dominated by one or two strong incumbents and wresting market share away from them is quite a challenge. With growth rates in markets such as skin care, hair care and household products suddenly moving into high gear, companies also cannot afford to lose time on the trial-and-error method that usually accompanies new launches. Given this scenario, domestic players seem to view brand acquisitions and mergers as the quickest way to step into new categories and acquire a well-rounded product basket, without squandering their surpluses on brand-building expenses. Market shares apart, many of the buyouts have been motivated by the need to acquire better distribution reach whether within India or overseas. Introduction I. MERGER A merger is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. A merger occurs when two or more companies combines and the resulting firm maintains the identity of one of the firms. One or more companies may merge with an existing company or they may merge to form a new company. Usually the assets and liabilities of the smaller firms are merged into those of larger firms. Merger may take two forms- Merger through absorption Merger through consolidation. Absorption: Absorption is a combination of two or more companies into an existing company. All companies except one lose their identity in a merger through absorption. Consolidation: A consolidation is a combination if two or more combines into a new company. In this form of merger all companies are legally dissolved and a new entity is created. In consolidation the acquired company transfers its assets, liabilities and share of the acquiring company for cash or exchange of assets. II. ACQUISITION A fundamental characteristic of merger is that the acquiring company takes over the ownership of other companies and combines their operations with its own operations. An acquisition may be defined as an act of acquiring effective control by one company over the assets or management of another company without any combination of companies. III. TAKEOVER A takeover may also be defined as obtaining control over management of a company by another company.Merger of Procter Gamble Company and Gillette CompanyAbout the merging companies: Procter Gamble Procter Gamble Company is asoap opera. PG was named 2008 Advertiser of the Year by Cannes International Advertising Festival. Effective July 1, 2007, the companys operations are categorized into three Global Business Units with each Global Business Unit divided into Business Segments according to the companys March 2009 earnings release. Beauty Care Beauty segment Grooming segment Household Care Baby Care and Family Care segment Fabric Care and Home Care segment Health and Well-Being Health Care segment Snacks, Coffee, and Pet Care segment PG has gone into an aggressive mode. It has launched two new variants on 2nd Dec 2009, one in the detergent segment, which is called Tide Naturals and also another one in skin care segment under the Olay brand. Gillette Company The Gillette Company is a globally focused consumer products marketer that seeks competitive advantage in quality, value-added personal care and personal use products. It is the world leader in the mens grooming product category as well as in certain womens grooming products. Although more than half of company profits are still derived from shaving equipmentthe area in which the company startedGillette has also attained the top spots worldwide in writing instruments (Paper Mate, Parker, and Waterman brands) and correction products (Liquid Paper), toothbrushes and other oral care products (Oral-B), and alkaline batteries (Duracell products, which generate almost one-fourth of company profits). Gillette maintains 64 manufacturing facilities in 27 countries, and its products are sold in more than 200 countries and territories, with more than 60 percent of sales occurring outside the United States. The Merger: On October 1, 2005, Procter Gamble finalized its purchase of The Gillette Company. As a result of this merger, the Gillette Company no longer exists. Its last day of market trading symbol G on theOral-B, among others, which have also been maintained by PG. The Terms of the Merger: Date of merger: The merger came into effect from July 1st, 2007. The new company formed : The Gillette Companys assets were initially incorporated into a PG unit known internally as Global Gillette. In July 2007, Global Gillette was dissolved and incorporated into Procter Gambles other two main divisions, Procter Gamble Beauty and Procter Gamble Household Care. Gillettes brands and products were divided between the two accordingly. The Share Swap Ratio : Under the deal announced, Procter Gamble will pay 0.975 share of its common stock for each share of Gillette common stock. On Wall Street, shares in Gillette closed up nearly 13%, while PG slid 2.1% after the announcement. The Management: Gillettes chief executive James Kilts is to join the board of the merged company, becoming PG vice chairman, while PG chief executive A.G. Lafley will remain chief executive of the merged company. Examining the merger: Type of merger: Procter Gamble being number one in consumer products went into acquiring and merging with other companies like, Germanys Wella AG hair care line in 2003 and it also acquired Clairol for its hair-care lines and Iams Co. for its pet foods. The merger in question; between Procter Gamble and Gillette is thus a merger where the acquiring company is expanding in size of operations and also product offerings. This is thus a horizontal merger. Operational Synergies of the merger: The merger of the two companies will create the worlds largest consumer products conglomerate. Both companies are strong, diversified companies, so one wonders what uncaptured synergies there could be here. PG is adept at taking innovations from one product and transferring it to another product, so there may be opportunities to improve existing Gillette products. In addition, the companies are stating that the merger will give them more negotiating power with the most powerful buyer of consumer products. The deal would give the company even more control over shelf space at the nations retailers and grocers, real estate that is at a premium. Executives at the companies said they believe theyll both be able to grow faster together than separately, with PG opening doors for Gillette in markets such as China and Japan while Gillette bringing PG some product segments that are growing faster than the companys overall current portfolio of products.The merger will make PG the worlds biggest household goods maker, pushing Unilever into second place Financial Synergies: The merger would create a company with revenues of more than Rs.2700 billion that would have even greater clout against mass-market retailers like Wal-Mart Stores Inc., which have been pressuring consumer product suppliers to keep costs low. Because of expectations from the deal, PG raised the annual revenue growth outlook to 5 to 7 percent, rather than its earlier target of 4 to 6 percent. The companies said they expected cost savings and synergies of about Rs.630 billion to Rs.720 billion US over three years. PG and Gillettes combined market capitalization of about Rs 8325 billion US, would be by far the largest in the FMCG sector. HR Synergies: As part of the cost-cutting that would follow the deal, the merger would result in the elimination of about 6,000 jobs, or 4 percent of the combined work force of about 140,000. It said most of the cuts would come from eliminating management overlaps and consolidation of business support functions. Gillettes chief executive James Kilts is to join the board of the merged company, becoming PG vice chairman, while PG chief executive A.G. Lafley will remain chief executive of the merged company. Scenario Post Merger: Procter Gamble is the worlds largest producer of household and personal products by revenue, with its products reaching 4 billion people worldwide and its product line includes 23 brands across beauty, healthcare, and food including Tide detergent, Pampers diapers, and Gillette razors, that generate over $1 billion in revenue annually, with the companys total revenue at Rs.3555 billion in 2009.In 2005, PG expanded its portfolio to include razors and blades as well as batteries with its acquisition of the Gillette Company.The companys 2010 first quarter net income fell 1% to Rs.148.95 billion (Rs.46.35 per share) as higher prices offset lower sales volumes and foreign exchange effects, beating analyst expectations of Rs.43.65 per share. Revenue fell 6% to Rs.891.45 billion, though organic sales rose 2%. One of the key areas of growth for the company is in emerging markets worldwide. Sales in developing nations have increased steadily from 20% of total revenue in 2002 to 32% in 2009.PG already owns large and growing market share in countries includingglobal economic downturn, PG has announced it will focus its growth strategy on emerging markets, opening almost all of its 20 new manufacturing facilities outside its established markets. Procter Gamble attempts to maintain its competitive edge by focusing on product innovation. To this end, PG spends almost twice as much on research and development spending Rs.90 billion in 2009 as its closest competitor, Unilever, spent about Rs.58.5 billion USD in 2008.Through itsConnect + Developinitiative, PG looks to bring in new product ideas from outside the company. Connect + Develop has led to the development of 42% of new PG products in recent years. In fiscal 2009, PGs Net sales fell 3% to Rs.3555 billion driven by a 3% decline in unit volume and a 4% decline in net sales from the rising US dollar. Organic sales, a closely watched figure which excludes the impact of acquisitions, divestitures, andforeign exchange, increased 2%, which is below its target organic sales range of 4-6%.Earnings for fiscal 2009 increased 11% to Rs.603 billion. In July 2009, CEO A.G. Lafley stepped down from his post after 29 years with Proctor Gamble.He was succeeded by current COO Bob McDonald.The company expects sales to be up 0 to 3% in fiscal 2010,with sales back up in the fall of 2009, fed by price cuts, new products, and value-focused promotions. PG divides its business into three Global Business Units (GBUs) that develop and produce products and its corporate group which handles the operation and administration of the company. Beauty (33% of 2009 sales, 36% of 2009 net income): The Beauty GBU includes all hair and skin products, medications, razors, electric shavers, and batteries. This business unit includes several product lines acquired when the PG bought consumer products company Gillette in 2005. Proctor Gambles global market share in blades and razors is 70%, primarily centered on its Mach3, Fusion, Venus, and Gillette brands.In June 2009, PG further expanded its mens grooming business with the acquisition of the high-end shaving company The Art of Shaving and the mens skin care line Zirh. Health and Well-Being (21% of 2009 sales, 24% of 2009 net income): The Health and Well-Being GBU provide oral care, feminine health, pharmaceuticals, snacks, coffee, and pet care products. In oral care, the company has the number two market share position at 20% globally.In potato chips, the companys Pringles brand holds a market share of approximately 10%. Household Care (46.8% of 2009 sales, 43% of 2009 net income): The Household Care GBU manufactures a wide range of products from laundry detergent to diapers. The companys baby care market share in 2008 was 29%. Business Growth and Divestitures Folgers Sale On June 4, 2008, PG sold its Folgers coffee unit toJ.M. Smucker Companyfor Rs.132.75 billion.As part of the deal, PG shareholders will receive a 53.5 percent stake in Smuckers and the company will assume Rs.15750 million of Folgers debt. Gillette Acquisition Procter Gamble acquired Gillette in 2005 for over Rs.2250 billion in its largest acquisition to date. In 2004, the last full year before the acquisition, Gillette generated over Rs.450 billion in sales, about Rs.270 billion of which came from razors and Duracell and Braun products and the remainder sourced from the Oral-B brand, which was moved into the Health Well-Being segment. A key piece of the acquisition beyond Gillettes product lines was its distribution network and supply chain. Gillettes distribution network and supply chain in emerging markets had been extremely successful for Gillette and, once acquired, has worked to complement PGs own distribution network. Sale of Pharmaceutical Unit In 2009 PG sold its pharmaceutical unit to Warner Chilcott Plc for Rs.139.5 billion in cash.The company expects to book a 43 cent per share earnings boost in Q2 of fiscal 2010 as a result of the sale.The deal allows PG to focus on its personal care, beauty, and household product divisions. In 2006, the company started winding down its discover-phase pharmaceutical products in favor of licensing late-stage compounds, and announced in 2008 it would exit the drug industry entirely. PG 2008 Net sales by Geographic Region(Post merger) PG has a well-established market presence in developed countries such as the United States and Western Europe and is looking to its presence in emerging markets. In fiscal 2009, 32% of total net sales came from developing nations,a figure that has increased steadily from 2002 when sales in developing nations accounted for only about 20% of total revenue (approximately Rs.360 billion). In China and Russia, PGs market share has been consistently increasing in the past five years as Procter Gamble has put an increased emphasis on establishing its products in those markets. In 2008, the companys distribution network reached 800 million people in China and 80% of the population in Russia. PG has created products designed specifically to target developing nations. The average Mexican spends about Rs.9000 a year on PG products, Chinese per-capita spending is only about Rs.135 and India per-capita spending Rs.45.Increasing sales in China and India to the levels in Mexico would add Rs.1800 billion in sales to the companys overall revenue. Research Development focuses both inside and outside the company In 2009, PG spent approximately Rs.91.8 billion on Research Development, nearly Rs.45 billion more than its closest competitor, Unilever.The two most important factors in PGs innovation process are its practice of consumer demand research and its Connect and Develop RD structure. First, when entering new markets, PG sets up in-home visits with consumers in order to fully understand the needs and desires consumers have for household and personal products. This way, PG gets directly to its customers and is able to cater to their needs. PG also incorporates consumers input into the RD process through its Connect and Develop initiative. Through Connect and Develop PG has an online interface set up where people can submit product ideas and provide input on topics that PG places on the web-portal. PG staff then sorts through the ideas and work with the most promising ones. This process is not responsible for the entire RD that PG does, but approximately 42% of new products in the last sev eral years were influenced by or originated from Connect and Develop. Tide Stain Release, a stain-removing detergent released in July 2009, has garnered 10% market share in the US as of November 2009.The Bounce Dryer Bar, an automatic laundry freshener released in August 2009, has captured 7% of the North American fabric sheet market as of November 2009. Commodity Prices A diversified consumer products manufacturer, PG depends heavily on a wide basket of global commodities for manufacturing its goods, the prices for which have risen nearly 50% since 2002. Nearly half of the companys cost of goods is directly related to commodity goods. The company has increased prices due to higher costs of oil and other raw materials. In its conference call, the company stated that it expected raw material costs to increase Rs.135 billion in 2009.The company has raised prices on Cascade dishwashing detergent, Iams pet food, and Gillette razors to counter the increasing cost of oil in the first half of 2008.PG instituted broad price adjustments in Q1 2010 to close widening price gaps in several businessesincluding North American laundry, tissue, andtowel, and several Eastern European markets. Competition Procter Gamble provides the broadest and biggest portfolio of products in the household and personal care industry with 24 billion-dollar brands. PG generates 43% more revenue than its closest competitor,LOreal, and Reckitt Benckiser. Here are somekey factsabout the two firms. Cincinnati-based Procter Gamble was established in 1837 and made its name selling soap and candles to U.S. government soldiers during the civil war. Boston-based Gillette spends around Rs.2700 million annually on advertising. In May the razor-maker paid a reported 40 million pounds (Rs.3393 million) to sign international soccer star David Beckham to a three-year deal as its global face. Procter Gamble employs a workforce of 110,000 worldwide and has a market capitalization of Rs.6345 billion. Gillette employs 29,400 employees worldwide and has a market capitalization of Rs.2025 billion. Gillettes profit beat market expectations last October after Hurricane Ivan spurred the buying of Duracell batteries. Limitations: Due to lack of data the financial statements analysis of Procter Gamble was not carried out. Conclusion Thus the acquisition and integration of Gillette was the largest and most successful in the history of Procter Gamble. PG acquired Gillette, which is best known for its shaving products, in 2005 for Rs.2565 billion. The merger between Procter Gamble and Gillette is a horizontal merger where the acquiring company is expanding in size of operations and also product offerings. The merger created various synergies like financial, operation and human resource synergies. After the merger Procter Gamble integrated systems in 26 countries, spanning five geographic regions, representing about 20% of sales. Gillette is a catalyst that makes PG a better brand-builder and a stronger innovation leader. There is no doubt that PG and Gillette are stronger together than alone, and both the companies together can deliver accelerated growth targets over the balance of the decade. Acquisition of Balsarashygiene and home product by Dabur About the merging companies: Dabur Company Dabur India Limitedis the fourth largest FMCG Company in India and Dabur had a turnover of approximately Rs.2,834 Crore Market Capitalisation of over Rs 10,000 Crore, with brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur has global presence in 50 countries; products are available in the markets of Middle East, South-East Asia, Africa, the European Union andAmerica. Dabur is an investor friendly brand as its financial performance shows. The companys growth rate rose from 10% to 40%. The expected growth rate for two years was two-fold. Theres a great sense of responsibility for investors funds on view. This is a direct extension of Daburs philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall. The company, through Dabur Pharma Ltd. does toxicology tests and markets ayurvedic medicines in a scientific manner. They have researched new medicines which will find use in O.T. all over the country therein opening a new market. Dabur Foods, a subsidiary of Dabur India is expecting to grow at 25%. Its brands of juices, namely, Real and Active, together make it the market leader in the Fruit Juice Category. Dabur Ranked AmongIndias Most Trusted Brands of 2007 By Economic Times-Brand Equity. Products of Dabur Ø Under health care products it has brands like Hajmola, Pudin Hara, Dabur Chyawanprash, Glucose D, Dabur Lal tail,etc. Ø In home care range consist of product like Odinil,Odomos,odopic,etc. Ø Under personal care range it has product like Vatika,Gulabri,Dabur Red Toothpaste,etc. Ø In food range it has brands like Real Active ,HOMMADE-range of ready made pastes, soups, coconut milk tomato puree Ø Dabur has guar gum plant,a natural gum used in foods industrial applications. Ø Dabur also produces ayurvedic medicines. Balsara Company The Balsara Group manufactures and markets its products, in India and Internationally. The Group has a domestic annual sales turnover of Indian Rs. 2 billion, and a rapidly growing international sales turnover of Indian Rs. 350 million. The Group is professionally managed, with manufacturing, sales, distribution and administrative facilities located throughout India, in addition to its international operations. In the Indian market, 60% of the Balsara Groups sales turnover of Indian Rs. 2 billion comes from Personal Hygiene Products (Promise, Babool and Meswak oral care ranges) and 40% is derived from Household Products (Odomos insect repellents, Odonil Air Fresheners, Sani Fresh toilet cleaners and Odopic dish washing products). Balsara has a wide national sales and distribution system that makes products available in 10, 54,000 retail outlets. The system is supported by a distribution network of 4 Zonal Offices, 13 Branches, 24 Regional Warehouses, and 1700 Distributors in 1500 towns. The mission of the Balsara Group of Companies is to be a leading provider of superior quality personal and household products, ingredients and packaging materials to consumers and customers on the Indian sub-continent and throughout the world. The Acquisition: On January 27, 2005 Dabur India today announced the acquisition of Balsara Hygeine and Home Care businesses for Rs. 143 crores and said it would look at more buyouts to capitalise on the consolidation in the sector. The company board of Dabur approved the acquisition of controlling stake in three Balsara group companies Balsara Hygiene Products, Balsara Home Products and Besta Cosmectics. With the acquisition of the Rs. 143-crore Balsara Group in an all cash deal, Dabur India will have oral care brands such as Promise, Babool, Meswak; mosquito repellents such as Odomos and household products such as Odonil and Odopic under its fold. Dabur India will acquire the entire promoters stake in the three companies 99.4 per cent in Balsara Hygiene, 100 per cent in Balsara Home Products and 97.9 per cent in Besta Cosmetics. The Terms of the Acquisition: Date of the acquisition: The merger came into effect from 1st April 2006. The new company formed : According to the deal Dabur will take full control of Balsaras entire brand portfolio which consists of oral care brands like Promise, Babool, Meswak; mosquito repellants like Odomos and household products like Odonil, Odopic. The deal also includes takeover of Balsaras operations consisting of three manufacturing facilities at Kanpur, Silvassa and Baddi and about 600 employees. Dabur India will also acquire the entire promoters stake in the three companies 99.4 per cent in Balsara Hygiene, 100 per cent in Balsara Home Products and 97.9 per cent in Besta Cosmetics. The Share Swap Ratio : Under the deal announced, Dabur India Ltd will acquire Balsaras hygiene and home product businesses in an Rs 143 crore all-cash deal. While Rs 120 crore will be funded through internal accruals, the balance Rs 23 crore will be raised through debt. Examining the Acquisition: Type of merger: The Rs 1,300-crore fast-moving consumer goods major Dabur India acquired Mum

Marketing Of Coca Cola In The Uk Nepal Marketing Essay

Marketing Of Coca Cola In The Uk Nepal Marketing Essay Coca-Cola is one of the world leading and largest Company in the sector of beverages. It was established in 1886 by Dr. John Pemberton who was a pharmacist of Atlanta, Georgia USA. The brand has since become household drink in more than 200 countries across the world. Carbonate drinks are the single largest component in Coca-Cola Company which account for nearly 78% of the total volume sold in 2008. The company has more than 3000 products of beverages and has nearly 500 brands in its portfolio includes Coca-Cola or Diet Coke family, Coca-cola enterprise (CCE). Likewise, wide range of carbonates including Fanta, Lilt, PowerAde and sprite. Coca cola in UK The market of carbonate in the UK is normally dominated by relatively few companies. These are, in the main, subsidiaries of global corporation such as the Coca Cola Company and Pepsi CO. Moreover, Coca-Cola, BSD and own label alone account for well over two thirds of the carbonates market volume in the UK. The purpose of sale of BSD, In which PepsiCo already has a 10% share, is likely to make one of the these groups even stronger in the UK market. Mainly, the major brand of Coca -Cola Company is coke or simply Coca-Cola. Other major brands of Coca-Cola UK portfolio contains Diet Coca-Cola, Cherry Coca-Cola, Fanta , Lilt, Sprite, Dr Pepper and Schweppes. Dr Pepper has been on sale in the United Kingdom since 1982, is account to more famous among the young and teenagers peoples in the UK. The operations of the Company in the UK are categorized among CCE and Coca-Cola Great Britain (CCGB), where CCE is the manufacturer and distributor, likewise CCGB belongs to the brands which have more responsibility in the field of marketing. Coca cola in Nepal At first Coca-Cola was introduced in Nepal in 1973, which was imported from its neighbour country India. Local production of Coca-cola in Nepal was started in 1979, with the establishment of Bottlers Nepal Limited (BNL). Coca-Cola Sabco was provided the right of bottling from the Coca-Cola Company to Nepal in 2004. BNL has plants in the capital city Kathmandu and Bharatpur municipality, which is only the bottler of Coca-Cola products in Nepal. The Marketing, Sales and Distribution strategy for BNL is mentioned as Refresh the Marketplace and contain a robust Consumer Response System to deal with the concerns, ideas and suggestions of the consumers. BNL is also dedicated to support the community through different programmes, mainly in the sector of health. In relationship with the local community, BNL also support by providing a Free Health Check-up Clinic at Bharatpur municipality. Facts:/strategy The Coca-Cola brand has been implemented the global marketing strategy. They are taking into account the whole world into the single market place and uniform marketing strategy was introduced by Coca-cola for many years, at present the trend is changing and various marketing campaigns are being prepared for the development of the Company in different regions of the world. Basically, decisions related to the Business are made on a domestic basis to fit in with the culture and needs of the domestic community. In 1919 Coca-Cola decided to expand its business in the global community. The Coca-Cola Company decided to take its operations around national boundaries and the research of its marketing was started in USA, china and other many countries of the global world. Due to the successful and efficient marketing research of Coca-cola, it was able to expand its business globally in different places of the global world. Advertisement   Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  If we consider on advertising perspective of Coca-Cola Company, advertising has more successful power to increase customers demand worldwide. Basically, advertising has to be in line with the domestic culture. An adapted marketing mix defines adjusting the mix with the established culture, geographic, cost-effective and other differences in different nations of the globe. Coca-Cola Advertisements in Nepal The Coca-Cola has a long history of sports marketing relationships Bottlers Nepal and Bottlers Nepal (Tarai) on lsat week announced the launch of their summer promotion campaign Coca-Cola Football great festival targeting soccer fans across the country. . According to Bottlers Nepal, customers need to purchase Coca-Cola, Fanta or Sprite and text the ten digits unique code under the bottle crown of to 4477 from mobile phone. The scheme is appropriate to all 200 ml and 250 ml returnable glass bottles or all sizes of PET bottles from April 1 to May 31, 2011. According to the Pranaya Sthapit, marketing manager of Bottelers Nepal, during the period of scheme, consumers can get a chance to win attractive Coca-Cola t-shirts, caps and free drinks (www.cocacola.com.np). Advertisement of Coca Cola in Rural Area of Nepal. Figure: 1.1 Reference: http://commons.wikimedia.org/wiki/File:Coke-nepal.jpg Coca-Cola Advertise in UK Coca cola follow integrated marketing communication theory in developed and advance country. In UK TV advert carries a particular logo, images and message, then all newspaper adverts and point-of-sale materials should carry the same logo, images or message, or one that fits the same theme. Coca-Cola uses its familiar red and white logos and retains themes of togetherness and enjoyment throughout its marketing communications. Don caster Rovers Coca Cola Advert Piccadilly Circus London References: http://www.flickr.com/photos/crispy789/2498475157 This place is the most popular and historical place in the London. More than 100,000 people visit it each day. Marketing affects perception of customer. This type of advertisements has direct effect on customer perception from multinational and multicultural tourist in UK. They have different advertisement and different type of product in the base on different demographic and behaviours people. When we compare the coca cola and other carbonate soft drinks advertisements in this time we can get totally different between each other. Coca cola only highlight its name rather than other things, the product promote itself .Coca- Cola brand image and its perception between the competitors helps to mouth publicity all over the world. Marketing Communication theory and Coca-Cola Marketing communication is the systematise relationship between business and its potential market where the marketer assembles a wide and different variety of ideas, massage, degision. Forms, media shape and colours both to communicate idea to and to stimulate a particular perception of Coca-Cola Company by individual people who have been aggregated in to their target market Coca-Cola use the number of Marketing communication tools for assemble such as personal selling, sale promotion , public relationship and advertisement. Coca Cola lunched simple wall Advertisement in Rural Area of Nepal. This has one of the simple communications strategies of Bottlers Nepal Limited. People who live in the rural area t havent any equipment of media such as TV, FM, Internet and good facilities of transport. Coca cola provides coke freeze to their consumer for selling their own product and they have strongly motivated to sell only their product. Simple communications models show a sender sending a message to a receiver who receives and understands it. Real life is less simple many messages are misunderstood, fail to arrive or, are simply ignored. Thorough understanding of the audiences needs, emotions, interests and activities is essential to ensure the accuracy and relevance of any message. Marketing System Input Processing Output Feedback Figure: Marketing communicates process in Rural place of Nepal. Market Segmentation in Nepal : Generally, Nepalese market was practiced mass marketing approach with range of product in the past. Because of the changes in socio-economic field and developments in transport and communication sector have made Nepalese marketers conscious of market segmentation. The marketing strategies of global Companies like Coca Cola have reinforced this realization. The following points describe the practices of market segmentation in Nepal. 1. Non-systematic: basically, marketing segmentation is not based on systematic market research. Previous experiences, feeling of management and strategy of competitors have influenced marketing segmentation. 2. Variables for Segmentation: Different variables mainly used for consumer market segmentation are given below Geographic Demographic Psychographic Behavioural 3. Lack of Information: Nepalese marketers lack comprehensive information about consumer characteristics. They tend to regard marketing research as a wasteful cost. This has constrained the effective evaluation of market segments in terms of their attractiveness and appropriateness. Risks are not properly assessed. 4: Government Policies: Government policies in Nepal are not very supportive of marketing. They do not regard businessmen as partners for development. Restrictions of movement of goods and controls have discouraged market segmentation. 5: Lack of Ethical Considerations: Environmental and welfare considerations are generally disregarded for market segmentation in Nepal. The above points clearly indicate that the concept of market segmentation is at an initial stage in Nepal. However, the importance of market segmentation is likely to increase in the years to come. Market segmentation in UK. The companys beverages are generally for all consumers. However, there are some brands, which target specific consumers. For example, Coca- Colas diet soft drinks are targeted at consumers who are older in age, between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and do sport. Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12. Positioning Positioning is the process of creating, the image the product holds in the mind of Consumers, relating to competing products. Coca cola and Pepsi both make soft drinks, Pepsi may try to compete but they will still be seen as down market from coke. Coke has been positioned based on the process of positioning by direct comparison And have positioned d their products to benefit their target markets. Most people Create an image of a product by comparing it to another product, thus evident Through the famous battles between Coca-cola and Pepsi products. Product life cycle: When referring to each and every product or service ever placed before the consumer i.e. in the long term all the existing products and services are dead. So every product is born, grows, matures and dies. So in the commercial market place products and services are created, launched and withdrawn in a process known as Product Life Cycle. To be able to market its product properly, a business must be aware of the product life cycle of its product. The standard product life cycle tends to have five phases: Development, Introduction, Growth, Maturity and Decline. Coca-Cola is currently in the maturity stage, which is evidenced primarily by the fact that they have a large, loyal group of stable customers. Furthermore, cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability. In foreign markets the product life cycle is in more of a growth trend Cokes advantage in this area is mainly due to its establishment strong branding and it is now able to use this area of stable profitability to subsidize the domestic Cola Wars. Insert the picture of the product lifecycle. Financial objective in UK Coca-Cola Enterprises, the worlds largest bottler of Coca-Cola products which will soon be focused purely on some of the largest but also most mature soft drinks markets in Western Europe, is optimistic about the long-term growth prospects for this territory. The group aims to achieve in currency neutral terms: revenue growth of 4% to 6%; operating income growth of 6% to 8%; earnings per share growth in a high single-digit range; and return on invested capital improvement of 20 basis points or more per year. These metrics reflect the solid growth opportunity that lies ahead in Europe, says John Brock, chairman and chief executive of Coca-Cola Enterprises. They exceed our current long-term objectives. We are committed to these financial objectives, and in turn, to creating real value for our shareowners, our customers, and our employees. Financial Market share of coca cola in UK Coca-Cola has reported strong second-quarter profits, beating market expectations, thanks to rising international sales. Total profits were $2.37bn ( £1.56bn), up 16% from a year ago and narrowly above forecasts of $2.3bn. The beverage makers share price jumped 2.3% in the first 15 minutes of New York trading. Revenues were up 4.8% to $8.67bn, thanks to rapid sales growth in Latin America, Africa and parts of Asia. Among the best growth markets were Brazil, where sales volumes were up 13%, and India, up 22% since last year. The producer of Fanta, Sprite and Vitamin Water also reported a pick-up in growth albeit at a more sedate 2% pace in its home market of North America. In Europe, however, sales were down .1 referances http://www.bbc.co.uk/news/business-10716077, 21 July 2010 Last updated at 15:42 Coca-Cola Enterprise is the UK subsidiary for the Coca-Cola Company. In 2008 UK carbonate was valued about  £6billin; with which Coca-Cola (GB) hold about 60% value in both retail and on-trade. Britvic soft drink which is UK subsidiaries of PepsiCo and is the main competitor was second place in terms of market shares of 15% retail sales according to mintel. PepsiCos flagship brands in soft drinks are Pepsi, Pepsi Max, Diet Pepsi, Gatorade and Mountain Dew, and the company also owns Tropicana and Dole, the worlds leaders in fruit juice. GlaxoSmithKline PLC, a giant in healthcare products, is the UK third largest carbonate drink and is also on a different scale from most drinks companies. The company specialised in medicines and oral care, as well as three famous drinks brands: Lucozade, Ribena and Horlicks. CCE, had a turnover of  £1.43bn in the year ending 31st December 2006, up 2.4% on the previous year whereas For the year ending 30th September 2007, Britvic PLC recorded total branded revenues of  £716.3m, up by 5.7% on 2006. According to John Sicher of Beverage Digest (2009), Coca-Cola was the number one brand with around 42.7% in 2008. PepsiCo was second, with 30.8%, however these market shares for both Coca-Cola and PepsiCo have slightly decreased from 2007 to 2008. Coca-Colas volume has also decreased 1.0% since 2007, whereas PepsiCos volume has increased 0.3%. Strong growth of Coke range in the UK is probably due to the introduction of coke zero and Diet coke product. Coke Zero is the most significant of KOs new innovations. This beverage is marketed as a calorie-free version of Coca-Cola Classic, omitting the diet label in an attempt to appeal to new demographics. This brand alone accounted for nearly one third of all 2006 growth for beverages bearing the Coca-Cola trademark. Reference; http://ivythesis.typepad.com/term_paper_topics/2009/08 strategic-analysis-coca-cola.html The Top 10 Soft Drinks Companies in 2009 by market share. Coca-Cola ( bottling partners) PepsiCo ( bottling partners). Nestle. Suntory. Dr Pepper Snapple. Red Bull. Danone. Kirin. Asahi Breweries. Ito En. Coca-cola is number one for the 11th year http://www.financenews.co.uk/uncategorized/coca-cola-still-on-top-of-the-world/ Coca-Cola has retained its spot as No 1 in annual ranking of the 100 Best Global Brands followed by IBM, Microsoft, Google and GE. The 2010 report estimates the Coca-Cola brand value at $70.5 billion, up by two per cent since 2009, said the Interbrand that uses a combination of analysts projections, company financial documents and its own qualitative and quantitative analysis to arrive at a net present value. Top 5 Global brands in 2010 Rank Company Brand Value 1 Coca-Cola $70.452m 2 IBM $64,727m 3 Microsoft $60,895m 4 Google $43,557m 5 GE $42,808m The Himalaya Times ,Added At:   2011-02-14 12:18 AM The market share of Coca Cola and its rival Pepsi might be 50-50 in many parts of the world but when it comes to Nepal, the market share structure would be 3:1. The factor which needs to be credited for this data of Coca Colas market share cannot be determined that easily. As far as I know, the factors could be, the management and the quality it has maintained. The company with the largest paper work in Nepal had Bottlers Nepal, the sole distributor for Coke in the second spot. This also proves that the management is good and the quality maintenance needs no description at all. There were ups and downs in Coke. A couple of years or so, the workers went on for a strike all over Nepal in Bottlers Company resulting the distribution and production into halt. To worsen this case, this halt was in existence in the peak season which was finally solved. The year 2008 could be different and nothing is predictable. The number one spot could be snatched by Microsoft in this present age of information technology. If only Coca Cola could come up with some beverage for chilling cold with the same brand, who knows they might still be at the number one spot for the next ten years or so. Friday, January 11, 2008 | The carbonate market in the UK is dominated by relatively few companies. These are, In the main, subsidiaries of global conglomerates such as the coca cola company and Pepsi CO.Indeed, Coca-Cola, BSD and own label alone account for well over two thirds of the carbonates market volume in the UK.The purpose sale of BSD, In which PepsiCo already has a 10% share, is likely to make one of the these groups even stronger in the UK market. Financial objectives On September 7, 2010, CCE announced updated long-term financial objectives, including the following: Revenue growth of 4 percent to 6 percent; Operating income growth of 6 percent to 8 percent; Earnings per share growth in a high single-digit range; and Return on invested capital improvement of 20 basis points or more per year. Coca cola market share by area Area NORTH AMERICA LATIN AMERICA EUROPE MIDDLE EAST ASIA AFRICA Volume 30% 25% 22% 17% 6% RANKING 1 2 3 4 5 Figure: 2 Sources: Business plan on coca-cola 8/8/2010 MARKETING STRATEGY Our local marketing strategy enables Coke to listen to all the voices around the world Asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether youre a student in the United States enjoying a refreshing Coca- Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, were there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our Commitments to education, health, wellness, and diversity. Coke strives to be a good neighbour, Consistently shaping our business decisions to improve the quality of life in the communities in which we do business. Its a special thing to have billions of friends around the world, and we never forget it. Processes of Communication in a coca-cola The process of communication would be as follows: Message conceived decision made to send message and reasons why. Message encoded information for notice and what sort of layout is going to be used etc. Communications medium selected communication method selected, in this case notice. Message decoded language and knowledge used to send out the right message. Message interpreted meaning of notice, recipients view. Feedback supplied feedback supplied to sender e.g. opinions, response etc. Sample of communication process of coca-cola N N Massage . Feedback Figure: Schramm (1955) Note:Communication process copy from book http://books.google.co.uk/books?id=KKp3Hg5vmVsCpg=PA276dq=marketing+communication+theory+/coca+colahl=enei=69phTZj6G9HssgbEqKC2CAsa=Xoi=book_resultct=resultresnum=3ved=0CD4Q6AEwAjgK#v=onepageq=marketing%20communication%20theory%20%2Fcoca%20colaf=false Coca-Cola market share and sub product in Nepal Bottlers Nepal said it is planning to invest $10m in the next three years to expand its bottling operations and launch a brand of mineral water for the market. The bottler of Coca-Cola in Nepal will use the funds to modernise its bottling plants in Kathmandu and Bharatpur. The company, which posted a 20% growth in 2009, said it will start manufacturing the Kinley brand of mineral water following standards prescribed by the World Health Organization (WHO). Coca-Cola Sabco, one of Coca-Cola Companys bottling partners, has invested about $45m in the last five years, and annually produces one million bottles of carbonated soft drinks. Coca-Cola has a 67.8% market share in Nepals carbonated soft drinks business, according to global marketing research firm ACNielsen. RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company, which are following. à ¢Ã¢â€š ¬Ã‚ ¢Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. à ¢Ã¢â€š ¬Ã‚ ¢According to the survey, conducted by the international firm Nepalese people like little bit sweeter cola drink. So for this coca cola company should produce their product according to the local demand. à ¢Ã¢â€š ¬Ã‚ ¢Marketing team should try to increase the availability of Coke in rural areas. à ¢Ã¢â€š ¬Ã‚ ¢They should also focus the old people. à ¢Ã¢â€š ¬Ã‚ ¢Now young generation has a trend to drink coke 2 regular bottles at same Time, so providing more satisfaction to them company should introduce  ½ liter disposable bottle. +