The Excellent Consuting Group Coursework Example | Topics and Well Written Essays - 1000 words

The Excellent Consuting Group - Coursework Example The revenue of product X5 was fairly stable but low, while that of X7 was extremely low but exceptionally stable for the year 2011 and would be low up to 2015. Profit Like the revenue performance, X5 and X6 products meet the profit threshold while X7 continue to make losses. It is below bar to a tune of -$31million dollars. Total Income The breakeven point for the three products is determined by the fixed costs, selling price and the number of units sold. The total sales in 2015 reduced compared to sales realized in 2015. Similarly, the total revenue reduced. Since the fixed and R&D costs remained constant, the average profitability reduced from 10% to 4%. X5 income The sales and revenue reduced in 2015 as compared to 2014 showing a great reduction from 3% to 1% profitability. The fixed and R&D costs remained high. X6 income The revenue and sales reduced by almost half in 2015 as compared to 2014. The profits also reduced from 16% to 10%. R&D costs were higher compared to the other p roducts. X7 income This product realized increased revenues since sales went up. In contrast to the other products, variable costs increased while the total profits went up. The product was making losses but well performing when compared to Product X5 and X6. Market Information Sales The sales for product X6 was exceptionally on the rise from the year 2011 and 2013 but gradually reduced from the 2013 to 2015. ... Product Performance X6 is highly performing in the market when compared to X5and X7. However, X5 is reducing in performance while X7 has stable performance. Market Report 2011 X5 Market Report The installed customer base of product X5 shows an increase from 2014 to 2015. The number of remaining customers has reduced while market saturation increased from 37% to 41%. First time customers reduced while repeat sales increased. X6 Market Report The installed customer base of product X6 shows an increase from 2014 to 2015. The number of remaining customers was exhausted while market saturation increased from 90% to 100%. First time customers reduced to zero while repeat sales increased. X7 Market Report The installed customer base of product X7 shows an increase from 2014 to 2015. The number of remaining customers has reduced while market saturation remained at 3%. First time customers and repeat sales increased. Proposed Alternative Strategy Suppose the prices of X5, X6 and X7 products a re set at price $400, $360 and $200 respectively. Also by apportioning the research and development (R&D) allocations as follows; X5(25%), X6(40%), and X7(30%). The cumulative profits for 2012 will be 192,479,522. The X5 is less expensive than other similar products in the market. X6 sales are in the growth phase of the product lifecycle. The majority of X6 customers have not yet purchased the product. The X5 compares more favorably with other tablets in the category. The cumulative profits for 2013 are 463,673, 489. The decisions for 2014 will be effective if X7 handheld is priced higher than competing products and is in the growth phase. There are many X7 customers remaining in the market. Most of the customers for the X7

The brand perception impact of advertising for Starbucks Company Essay - 2

The brand perception impact of advertising for Starbucks Company - Essay Example Management judgment has also become an important factor as it determines the location scheme based on the information gathered from the consumer. According to Davies (2003), the information is mainly comprised of expectations for the products and what it could offer, putting an emphasis on its difference from competitors. These dynamic approaches have produced models that have been used for historical sales and marketing data, while Mathieson (2005) cited that the models shaped by the advertising media were also seen as effective maneuver for improving brand performance. According to (Wesly & Manatt 2008), in order to effectively position one brand in the market, a marketing executive needs to consider four fundamental changes that have serve as driving forces of brand positioning in the market. According to Wesly & Manatt (2008), these are: 1. The explosion of internet and other technology driven channels that resulted into numerous methods of improving one brand presence. One significant characteristic is that this change has increased the targeted audience, making the brand more known to a large number of people in a span of minutes or seconds. 2. Technology has also resulted into the increase of word of mouth. Technology presented a much efficient and faster way of sharing brand information such as the internet, wherein customers could shop online while talking to one of their friends via chat room. According to Bazerghi, Tarrant, Munro & Levine (n.d.), this method has significantly improved how brand presence is shaped as most people use the internet nowadays, and that there is about 40 percent of total market consumers that are into online shopping. Word of mouth specifically helps in the positioning of a brand in the market, as it directly helps in the pinpointing who are the customers that avail the product most of the time. 3. Business partnerships have opened new paths to increasing brand presence and