Philip Morris A case analysis Submitted to Prof A. Sahay Post-Graduate Programme in Management 2003-05 by Group -B03 Ashish Virmani 03P083 Apurva Shah 03P079 Kapil Sood 03P095 Naveen John Akkara 03P103 Suresh Sethumadhavan 03P132 Vishu Goel 03P138 Management Development Institute Gurgaon 122 001 4th August, 2004 PHILIP MORRIS LTD. "Working to Make a Difference The People of Philip Morris" Recommended Mission statement "Create quality products in the area of tobacco, beer and packaged foods. Protect our shareholders interests while being social responsible. Create an environment where our members can be challenged and grow." About the company The Phillip Morris family of companies is the world's largest manufacturer and marketer of consumer packaged goods. It has three main lines of businesses - 1) Tobacco 2) Kraft Foods Division 3) Miller Brewing. It revenues were $72 Billion in 1997. It has got 12 brands whose sales are $1 billion or more. Competition - The US market of 1999 SWOT analysis Strengths * Brand names (Marlboro, B&H) * Core Competency * High ROE * Little use of financial leverage * Management Effectiveness * Different products for same market (Cigarettes, Beer) Weakness * Product is bad for health * Government Regulation * Litigation * Social / Cultural Acceptance * Losing Ability to Promote Product
Marketing In every human's life there are needs that have to be met in order to survive. These needs are laid out in Maslow's Hierarchy of needs. His diagram is a pyramid of needs that start off at the bottom, with the needs of basic survival, and it works its way to the top. The top needs are needs that are not required for human survival, but are necessary for a successful and happy life. In the diagram, some of the needs mentioned are security, comfort, the desire to be wanted and loved, to be respected and to have affectionate relationships. Needs like these are acquirable, but many of them have been so watered down that people really do not know the true meaning behind them. Because of this, companies target people that do not know any better, and tell them that their products will satisfy these needs, when in reality it will only make things worse. For example, when one sees an advertisement about a body spray, the advertisement would lead someone to believe that by simply using the body spray, people will become attracted to them. People believe these lies because of the fact that the ad suggests that one will achieve the need through the product, and unless a person views the ad analytically, the ad will work no matter how intelligent the viewer is. Another example is the advertisement of the medicine Valtrex. The advertisement makes the viewer see genital
MARKETING MANAGEMENT: PLANNING .0 Planning Planning is a process for accomplishing purpose. It is blue print of business growth and a road map of development. It is a part of managers' roles and it helps to derive organization forwards by coordinating resources and channeling them towards the achievement of pre determined goals. Planning can help to provide a framework for considering the future, appraising the various options and developing strategies to meet the organization objectives. Planning encourages people to consider the future and to realize that change is inevitable in a rapidly developing world. It also highlights the important of long term tasks. Through planning organization will successfully identify threats and polished the opportunities in the form of competitor activity. The steps involve in planning are analysis, planning, implementation and control. Analysis is essential to understand the current situation before identifying the direction in which the organization wants to go. It involves a complete review of the external and internal environment in order to identify opportunities. The information generated from this step will help to define the future strategy and will be utilized at all stages of the planning. Planning is concerned with objectives and strategies to help to achieve these objectives. In marketing, it would be concerned with marketing
Discussion Case 5: Viagra - Wonder Drug or Ethical Irresponsibility? .What are the ethical responsibilities for drug manufacturers? Is any drug completely safe, or is the ethical principle "do not harm" a relative guide? The biggest responsibility that the drug manufacturers have is to create a (relatively) safe product. Since there are always side effects to almost all prescriptions, the second responsibility would be to warn the potential users and distributors of the product of the risks and dangers associated with the product. There are almost no products that do not have the possibility of producing some harm. Even things such as butter, chocolate or coffee can be and are harmful, but they are still widely used. If such things are true for products that are "mild," should this not also be true for pharmaceuticals, which help in more concentrated doses, but it comes with a price because this also might cause some more severe side-effects. 2. Did Pfizer do enough by presenting its drug and warning patients of the drug's side effects through product labeling and instructions to physicians? If not, what more could Pfizer have done? No. In the case of Viagra, it does not appear that there was enough warning of the possible negative side effects. This may be just because the consumer was not warned. After some bad publicity that linked Viagra to some deaths
Information data analysis of tesco Introduction We have chosen Tesco as the organisation we will study. Tesco is the largest supermarket company in Britain, it holds 27% of its market share, this is almost twice the market share of its nearest rivals. Tesco is a long established firm with a good reputation and customer loyalty, it was founded in 1924 by Sir Jack Cohen and together with his tea producer T. E. Stockwell the started the brand name TESCO. Since then there stores have popped up all around the UK and then around the world. They now have 729 stores in operation in Britain and 55 new stores in the process of being built. It also has stores around the world in the Republic of Ireland, Hungary, Poland, Czech and Slovak republics, Thailand and South Korea and they are currently expanding to Malaysia and Taiwan. It employ's over 260,000 people. Tesco are a largely automated company when it comes to data handling and processing due to the incredible amount of data they deal with. Its main competitors are J.Sainsbury's, Safeway and ASDA and they keep Tesco striving to lower prices and provide the best possible service they can. With the motto "every little helps" they advertise through T.V, radio, newspapers and there own newsletter style leaflets which are delivered door to door on a monthly basis. TESCO All incoming goods are pre-labelled with a computer-readable
ENVIRONMENTAL ANALYSIS OF EASYJET AND ITS COMPETITIVE ADVANTAGE BACKGROUND/DEVELOPMENT OF EASYJET Stelios Haji-Ioannou, the founder of easyJet, initially became interested in the idea of a European low-cost airline in May 1994 after being offered a stake in a Virgin Atlantic Airlines franchisee. On refusing the offer, Stelios soon after flew on Southwest Airlines, a successful low-cost carrier in the US. This experience became the catalyst in his decision to create easyJet. EasyJet was established in March 1995, with low-cost flights from London's Luton Airport to Glasgow and Edinburgh in Scotland, supported by an advertising campaign, "Making flying as affordable as a pair of jeans - £29 one way". The flight was full, and demand for low-cost flights grew rapidly. Thereafter, Stelios over the next two years concentrated on expanding easyJet and raised additional finance to invest in additional aircrafts. By 1998 easyJet owned six Boeing 737-300s and flew 12 routes in five countries. However, today it owns 64 aircraft and offers 88 routes from 36 European airports.¹ Stelios modelled easyJet around Southwest Airlines' operational techniques, in terms of having one type of aircraft, point-to-point short haul travel, with no-frills, rapid turnaround time and with very high aircraft utilization. However, Stelios had an extra innovation up his sleeve, which was based on a
Contextual Studies 1.1 Marketing Report - Coca Cola Introduction Coca Cola is one of the largest companies in the world today and is the leading company in the soft drinks industry worldwide. It is estimated that Coca cola products are sold at a rate of more than 1 billion servings each day in over 200 countries. Coca Cola was founded in 1886 by Dr. John Stith Pemberton, but was later taken over by Asa Candler after Pemberton's death in 1888, after battling with long term illness. The original Coca Cola flowing script logo was created by Pemberton's bookkeeper and it was he who suggested the name. As Coca Cola aim to conquer the estimated $30 billion U.S. cola market, it is essential that every aspect of their business operations from production, pricing, promotion through to distribution is immaculate. This point is reinforced by a quote from the Chairman of board of directors, Douglas N. Daft, in which he says "fundamentally, the Coca Cola company is built on a deep and abiding relationship of trust between it and all its constituents: bottlers, customers, consumers, shareowners, employees, suppliers and the very community of which successful companies are an integral part. That trust must be nurtured and maintained on a daily basis". The quote is very representative of the way coca cola operates. As it is a very old and well established company a vast majority of
.0 Introduction .1 Purpose of the report Incorporated in 1910, Black & Decker (B&D) is a global manufacturer of power tools and accessories hardware, home improvement products and technology-based fastening system. Its well-recognised brand name products sold in over 100 countries. In the power tool industry, the company is involved in all the segments; i.e. Professional-Industrial, Professional-Tradesman and Consumer. In the United States market, B&D dominates the industrial and consumer segments. However, it is not the same for the tradesman segment. Makita, a Japanese manufacturer has the largest market share of nearly 50% in the Tradesman segment as compared to B&D's 9%. Therefore, in this report, I will identify and analyse the key issues that had affected the sales in the Tradesman segment and thereafter, develop a marketing strategy to challenge Makita for leadership in the segment. .2 Limitation of the report There are a number of limitations in this study. First, the fact that most of the results of the studies; i.e. Tradesman appropriate, market segment share, brand awareness and perception, market shares by product type and distribution channel are meant for one year: 1990.Due to the lack of data, I am unable to identify the trend of movement for the above studies, Second, with the absence in average industrial ratio, I am unable to ascertain whether B&D's
This analysis will also provide recommendations for Krispy Kreme to move forward and to increase their market share.
Krispy Kreme Doughnuts, a specialty retailer of doughnuts, has overcome some major obstacles and enjoyed a great amount of success in the past few years, but compared to other competitors in their industry, Krispy Kreme owns a very small market share. In order to determine why the company has been successful, but still owns a low market share, this case will analyze the internal and external factors that effect Krispy Kreme's success as well as how Krispy Kreme's strategies help the company create a competitive advantage. This analysis will also provide recommendations for Krispy Kreme to move forward and to increase their market share. External Environment In this section of the analysis, Porter's Five Forces model will be used as a framework to determine the degree to which external forces play in Krispy Kreme's success. Suppliers Since the ingredients in doughnuts are simple and plentiful, Krispy Kreme can purchase these materials from a large number of suppliers. Krispy Kreme has also centralized its mixing facility, which allows them to purchase materials from closely managed suppliers keeping their costs low. It is also not likely that a manufacturer of granulated sugar will integrate forward to open a doughnut shop. Overall, suppliers' threat to Krispy Kreme is low and should not be considered as a large factor when analyzing Krispy Kreme's market
"A monopoly can control price or output but not both while a firm in perfect competition can control neither - Discuss.
"A monopoly can control price or output but not both while a firm in perfect competition can control neither. Discuss As we all know that the term monopoly is illegal in our days and in addition we all know that at list all the biggest companies in the world are trying to get that point. However, the only reason that these companies are trying to became a monopoly on the business world, are the power of the monopoly, in other words, the monopolists can control the price on the market or the output and not only... In this essay we are going to look at the differences between company which is monopoly and company in perfect competition. However, it's easy to understand that in our days it's very difficult to become a monopoly on the business world, because of the high level of competition between the companies. It's also difficult to have the perfect competition and in my opinion it's very close to impossible. In economic theories, monopoly can control price or output but not both, while a firm in perfect competition can control neither. However, the differences between monopoly and perfect competition are the below: with the monopoly there is a one seller and many buyers. On the other hand, with the perfect competition there are many buyers and sellers. Another main difference between the monopoly and the perfect competition is that, with the monopoly we can have some