Marketing Plan for for Herborist Cosmetic Company, China

Contents i Executive summary3 ii List of Chart/ Figure4 1. 0 Situation analysis5 1. 1 Company and products background5 1. 1. 1 Company introduction5 1. 1. 2 Products introduction5 1. 2 Industry introduction6 1. 2. 1 Market size and share6 1. 2. 2 Developing trends7 1. 3 Macro-environmental analysis8 1. 3. 1 Political and legal environment8 1. 3. 2 Economic environment9 1. 3. 3 Sociocultural environment9 1. 3. 4 Technological environment10 1. 4 Competitive analysis10 1. 5 Customer analysis11 1. 6 Distribution channels analysis11 2. 0 SWOT analysis12 2. 1 Strengths12 2. 1. 1 Good organic cosmetics brand image12 2. 1. Clear marketing position13 2. 1. 3 Strong parent company13 2. 2 Weakness13 2. 2. 1 Capital not strong as many international cosmetic companies13 2. 2. 2 Lack of brand awareness14 2. 2. 3 Huge room of improvement in operations management14 2. 3 Opportunity14 2. 3. 1 Potential consumption capacity14 2. 3. 2 2008 Olympic Games attract western to traditional Chinese elements ( ‘Chinese wind’)15 2. 4 Threat15 2. 4. 1 Tough competition15 2. 4. 216 2. 4. 3 Investment risk (ROI and cash flow)16 2. 4. 4 Economic crisis17 3. 0 Objectives17 3. 1 Corporate objective17 3. 2 Marketing objectives17 4. 0 Marketing strategy18 4. 1 Target market18 4. Positioning strategy18 4. 3 Marketing mix19 4. 3. 1 Product strategy19 4. 3. 2 Pricing strategy21 4. 3. 3 Promotion strategy22 4. 3. 4 Place strategy24 5. 0 Budget for the next three years27 6. 0 Projected profit and loss statement28 7. 0 Action program29 8. 0 Control & feedback29 8. 1 Sales analysis29 8. 2 Market share analysis30 8. 3 Profitability by product30 8. 4 Efficiency on advertising, sales promotion analysis30 8. 5 Sales-force efficiency31 9. 0 Reference32 i Executive summary The marketing plan is aimed to outline a systematic marketing strategy for Herborist Cosmetic Company, which is specialized in herbal cosmetics.This marketing plan will firstly carry out a deliberate analysis on the market share , size, macro environment, distribution channel, competitor, customer and SWOT analysis for Herborist in Chinese cosmetic market. And then, based on the analysis, it will state the corporate and marketing objectives of Herborist and then give proper marketing strategy recommendations for Herborist. On one hand the recommendations will include the aspect of market segmentation combined with targeting consumer statement as well as positioning strategy.On the other hand, the recommendations will also include the suggestions on marketing mix such as the product strategies, pricing strategies, distribution strategies and promotion strategies. ii List of Chart/ Figure Figure 1 Market share and growth of different cosmetics sub-sectors, 2009†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦7 Figure 2 Skin care brands: share of total sales, 2008-09†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 10 Chart 1 Marketing budget chart for year 2011 to 2013†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦27 Chart 2 Projected profit and loss statement (2011 — 2013)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 28 Chart 3 Implementation schedule†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦29 1. Situation analysis 1. 1 Company and products background 1. 1. 1 Company introduction Shanghai Herborist Co. , Ltd. launched in 1998, as a subsidiary of the leading cosmetic producer Shanghai Jahwa United Co. , Ltd, is independently operated (Herborist official website 2010). As its great focus on using indigenous Chinese herbs in its natural beauty-care products, it has won population to a certain extent in the domestic cosmetic market of skin care aspect and was awarded with the title of â€Å"Shanghai famous brand† in 2005(Herborist official website 2010).And till the year 2008, Herborist has launched in Europ ean market through cooperation with Sephora, which is a leading cosmetics retailers owned by Louis Vuitton Moet Hennessy Group (Sephora official website 2010). 1. 1. 2 Products introduction The personal care products of Herborist personal are born based on the concept of combination of both modern biotechnology and traditional herbal medicine.Under the emphasis of the balance between traditional Chinese medicine theory and the high-tech means of modern technology, these products in Herborist can effectively recuperate skin, body and spirit to achieve the original beauty and make the users' skin as newly born (Herborist official website 2010). Herborist's products focus on not only the care of face and body but also the internal part, which always insist the concept of integrating Traditional Chinese Medicine into the latest fruits of modern biotechnology.Take its star product ‘Tai Chi Mud’ for example, it shows the last-for-ever Chinese aesthetic of balance via the comp atibility of Yin and Yang. And at the same time, due to the opening of Herborist Spa since the year 2002, Herborist cooperate the oil from herbal essence and herbal water therapy to offer women with holistic care, which also shows its concepts of balance beauty and health on the basis of Chinese traditional herbal medicine (Herborist official website 2010). 1. 2 Industry introduction 1. 2. Market size and share According to the research from Li and Fung (2009), it shows that the cosmetics market of China has enjoyed a continuous growth over recent years and China has become the second largest cosmetics market in Asia nowadays. And meanwhile, Chinese consumers' increasing purchasing power and more and more Chinese women's participation in the workforce have strengthened growth in the cosmetics market. Li and Fung (2009) also showed the data that retail value of China’s cosmetics has grown by 26. % and even reached ? 48. 83 billion CNY in 2008 from the National Bureau of Statis tics (NBS). Meanwhile, from Figure 1(Li & Fung 2009), we can see the skin care products have taken up a big market share even to 26. 3% of Chinese cosmetic market. And meanwhile the major market share of skin care products still dominated by some famous foreign brands such as P&G, Shieido, L'Oreal and some local low-end price brands such as Dabao and Longliqi(Li & Fung 2009).As the up-rising star of the cosmetic brand, Herborist’s market share is about 0. 3% out of the total market share till the first quarter of the year 2010 (Herborist official website 2010). Figure 1 Market share and growth of different cosmetics sub-sectors, 2009 Source: Access Asia 1. 2. 2 Developing trends On the basis of the survey from AMA Communication Services (2010), there is a trend of growing health awareness among Chinese consumers due to the development of China's economy.That's why Chinese consumers prefer cosmetic products using natural ingredients than chemical products, especially the ones with strong attachment to Chinese Traditional Medicine (TCM), which is an essential part of Chinese culture. Due to this special preference of Chinese consumers, there is a trend that more and more players, not only domestic but also foreign ones, begin to position their cosmetic products with mild chemical formulae as well as herbal and natural ingredients (Li & Fung 2009).P, for instance, added herbal ingredients such as Shouwu and Ginseng to its nourishing shampoos series of Chinese market. Lux of Unilever also launched its shampoos series with the addition of Chinese herbal ingredients including Danggui, Gingko and Bai Hao Yinzhen in Chinese market. Under this trend, Herborist Co. , Ltd has launched series of natural beauty care products with the ingredients of herbs since the year of 1998, and now enjoys a good popularity of nature beauty care brand (Herborist official website 2010). . 3 Macro-environmental analysis Macro-environment is the outside factors including political, economic, sociocultural, technological and legal forces, which influence the survival of the organization (Elliott, Rundle-Thiele & Waller 2010). 1. 3. 1 Political and legal environment In China, central government still encourages the domestic product's growth, which is some kind of guarantee for the development of domestic cosmetic companies, such as Herborist Co. Ltd (Ting 2009). While, at the same time, with the implementation of some tight regulations on cosmetic products such as the Hygiene Standard for Cosmetics (2007 Edition) and the Hygiene Standard for Cosmetics Manufacturers (2007 edition), Chinese government and consumers pay more and more attention to the safety of cosmetic products, especially after the Japan-based SK-II was tested and found to contain some unapproved substances in Chinese counter (Li & Fung 2009).For instance the total number of prohibited and restricted substances used in cosmetics is higher at 1,286, and there is also strict limitation on the use of certain ingredients contained in preservatives, sunscreen agent, coloring agent and hair dye agent. This also puts Herborist on alert to focus on their products safety. 1. 3. 2 Economic environment The economic conditions in China offer Herborist Co. , Ltd not only opportunities but also risks. China is the second large cosmetic market in Asia and the total retail sales of cosmetics in China is about ? 48. 3 billion CNY in 2008, which shows the great potential consumption power for cosmetic players both global and local, including Herborist(Li & Fung 2009). While the tax rate for the skin care products in China is about 8% to 30% or so on and to comply with the World Trade Organization agreements, the import tariffs of cosmetic products has been gradually reduced over the past few years, which bring great pressure for Herborist to face not only the expensive product tax but also the hyper competition from products of foreign players due to the relatively cheaper price compared to t he previous after the reduction of import tariffs. . 3. 3 Sociocultural environment There is a special preference on natural ingredients specially the addition of herbal material in skin care products, due to the Chinese Traditional Medicine therapy is the essence of Chinese culture (AMA Communication Services 2010). As for Herborist, this preference on natural ingredients skin care products of Chinese consumers is a great advantage. 1. 3. 4 Technological environment The increased usage of the internet in China is the result from the development of technology, which results in the popularity of expansion the online platform for product sale for most cosmetic companies.Under this situation, Herborist has also set up online platforms to show its products in order to reach more young customers (Herborist official website 2010). 1. 4 Competitive analysis As shown in figure 2 (Li & Fung 2009), the top 10 skin care brands accounted for nearly 80% sales in 2009 of Chinese market, in which the foreign players take up a large share in the mid-high and high-end segments such as P&G, L’Oreal and Shiseido. For Herborist these foreign brands including Olay, L’Oreal, Aupres, Yue-Sai, Avon, Shiseido and so on which also have the orientation on mid and mid-high segments are the powerful opponents.Figure 2 Skin care brands: share of total sales, 2008-09 2009 2008 BrandCompany nameShare of total sales (%) OlayProcter & Gamble (Guangzhou) Ltd 29. 71 AupresShiseido Liyuan Cosmetics Co Ltd 18. 94 L’OrealL’Oreal China11. 83 LancomeL’Oreal China7. 60 ShiseidoShiseido Liyuan Cosmetics Co Ltd 3. 47 Yue-SaiL’Oreal China2. 52 DeBonLG Household & Health Care Ltd 1. 32 TJOYNanjing Jianong Chemical Co. Ltd1. 11 DabaoBeijing San Lu Factory0. 61 Pond’sUnilever China Ltd 0. 61 Others22. 29 BrandCompany nameShare of total sales (%) OlayProcter & Gamble (Guangzhou) Ltd 34. 0 AupresShiseido Liyuan Cosmetics Co Ltd 13. 91 L’OrealL’Ore al China8. 36 DabaoBeijing San Lu Factory 5. 74 LongliqiJiangsu Longliqi Group Co Ltd 3. 61 TJOYNanjing Jianong Chemical Co. Ltd 2. 58 Yue-SaiL’Oreal China2. 33 AvonAvon (China) Co Ltd 1. 36 MininurseL’Oreal China1. 08 Pond’sUnilever China Ltd 1. 01 Others25. 82 1. 5 Customer analysis According to the research carried out by AMA Communication Services (2010), the average monthly expenditure on beauty and skin care products of female white collar consumers in Shanghai, Beijing reached 1,000 RMB (about 150 USD).And in other secondary cities of China, there is also large consumption capacity on skin care products. According to the data from Herborist official website (2010), there are at least 270,000 consumers as its members and near 90,000 core member, who contributes nearly 45% consumption of Herborist’s products. Moreover, most of the core members of Herborist are the ones who switch from using international high-end skin care products to Herboristâ€⠄¢s products and they have great brand loyalty to Herborist.Meanwhile these core members are also have great influence on motivating other consumers choosing Herborist’s products. 1. 6 Distribution channels analysis There are diverse distribution channels for Herborist to deliver its products to domestic consumers such as opening counters in China’s major department stores and professional stores and setting up specialty stores to sell its products (Herborist official website 2010). For instance, Herborist has already opened nearly 450 specialty stores until 2008, 70% of them are franchises. 2. SWOT analysis For Herborist, to have a better business performance, it is crucial to be able to understand the current opportunities in the market place, the major threat it may faced at the present as well as in the future, the strengths that Herborist owns compared with other competitors and the weakness which may affect its performance and future development (Elliott, Rundle- Thiele & Waller 2010). The SWOT analysis for Herborist will be implemented in the following, which will indentify the internal strengths, weakness, the external opportunities and threats related to Herborist. . 1 Strengths 2. 1. 1 Good organic cosmetics brand image Since the year of 1998, Herborist has begun to distinguish itself via intergrating Traditional Chinese Medicine into the latest fruits of modern biotechnology. And till now, it has already built a good image of organic cosmetics. The philosophy via Yin-Yang balance to enable skin, body and spirit to reach idea harmony and radiate natural, individualized and healthy beauty, has welcomed by a great many Chinese consumers(Herborist official website 2010). . 1. 2 Clear marketing position Herborist has posited itself as organic skin care brand and oriented itself targeted at middle and high income female white collar consumers, which attracts more than 270,000 consumers as its members and near 90,000 core members (Herborist of ficial website 2010). 2. 1. 3 Strong parent company The parent company of Herborist is Shanghai Jahwa United Co. , Ltd, a leading Chinese domestic cosmetics producer, which is good at integrating R&D, production, distribution and service.And meanwhile, Shanghai Jahwa has planed to invest ? 170 million to enhance the market share of Herborist, which can facilitate the development and maturity of Herborist(Herborist official website 2010). 2. 2 Weakness 2. 2. 1 Capital not strong as many international cosmetic companies Although Herborist has the support from Shanghai Jahwa, the capital of it is still not strong as some international cosmetic companies, which limits its spending on research and development (Whiteman & Krug 2008). . 2. 2 Lack of brand awareness Although Herborist has gain a reputation of healthy and organic skin care brand, it still lack brand awareness among several Chinese consumers, due to the limited investment in advertising. For instance, Herborist only promotes its products in print advertisement while ignoring other channels such TV ads, radio ads and so on (Chinairn 2009). 2. 2. 3 Huge room of improvement in operations management Operations management is another weak part for Herborist.It is reported that poor logistics management has led to long lead-time, high inventory as well as capital tie-up which place heavy burden on the future development of Herborist (Chinairn 2009). 2. 3 Opportunity 2. 3. 1 Potential consumption capacity In September 2006, the products of SK-II was tested and found to contain some unapproved substances in Chinese counter, followed by other world famous cosmetic brand including Clinique, Lancome, Dior and Estee Lauder whose cosmetic products were said to have prohibited substances (Ting, C. 2009).Due to these incidents, more and more Chinese consumers began to choose some organic and herbal skin care products, which is a great opportunity for Herborist to meet. According to the National Bureau of Statistics (NB S), the consumption power on cosmetic products will reach at ? 60 billion CNY in 2010, in which skin care products will take up nearly 30% of the total number, which for Herborist is really good new chance (Li & Fung 2009). 2. 3. 2 2008 Olympic Games attract western to traditional Chinese elements (‘Chinese wind’) Because of the 2008 Olympic Games, all the attention was focused on China which brought a Chinese wind.In skin care aspect, not only the Chinese consumers began to switch to choose herbal and organic products but also the foreign consumers show great interest in the skin care products with traditional Chinese medicine inside (AMA Communication Services 2010). As organic cosmetic brand specialized in herbal cosmetics, Herborist has developed under the concept of intergrating Traditional Chinese Medicine into the latest fruits of modern biotechnology, which made Herborist become one of the most popular domestic organic cosmetic brands in Chinese market under the ‘Chinese wind’(Simon 2009). 2. 4 Threat 2. . 1 Tough competition For Herborist, the biggest threat is the tough competition mostly from international players. Chinese skin care market is almost occupied by international cosmetics giants including L’Oreal, P&G, Estee Lauder Shiseido and so on (Li & Fung 2009). And because of the excellent brand building and management capability, massive advertising efforts as well as leading research and development capability, the products from multinational cosmetics corporations stand for quality, reliability and reputation in hearts of Chinese consumers compared with the local brands (Li & Fung 2009).For Herborist, to beat these international cosmetics giants and win more customers from them are really a big challenge. 2. 4. 2 Image of ‘made in China’ The tag of ‘made in china’ often stands for cheap price while poor quality, which also exits in skin care products (Wharton n. d). Just like the forei gn brands stands for quality, reliability and reputation, the Chinese made skin care products for foreign customers means poor in quality and even the same for some Chinese consumers.For Herborist, this kind of phenomenon is a great threat to both expand the domestic market share and especially position itself for the international markets. 2. 4. 3 Investment risk (ROI and cash flow) From the official website of Herborist (2010), the company has planed to invest ? 170 million to enhance the market share. Although it is good news for Herborist’s future development, it has to consider the issue on the period of return on investment (ROI).Herborist has the experience of too long time ROI, for instance, Herborist began to make profit after it came into the domestic cosmetic market seven years (Herborist official website 2010). If the return on this time’s ? 170 million investment still last too long, Herborist has to face the risk of cash flow problem, which may result in big financial dilemma for Herborist. 2. 4. 4 Economic crisis Due to the economic crisis in the recent year, the purchasing power is reduced and preference is inclined to relatively cheap products which for Herborist oriented on middle to high cosmetic products is a kind of pressure (Li & Fung 2009). . 0 Objectives 3. 1 Corporate objective Corporate objective for Herborist is to become a world class enterprise with the capability of innovation and creativity to not only continuously introduce high quality new products to meet the needs of the consumers but also maintain good quality products under the concept of integrating Traditional Chinese Medicine into the latest fruits of modern biotechnology (Herborist official website 2010). 3. 2 Marketing objectives The marketing objectives for Herborist include two parts.On the one hand, Herborist plans to expand its cover of domestic distribution channels to 170 main cities and enlarge the retail terminals from 700 to 1,200. On the other h and, Herborist plans to expand its market outside the China mainland market via the cooperation with Sephora (Herborist official website 2010). Herborist aims to achieve ? 1. 35 billion of sales revenue in the end of 2014 and increase the revenue as well as Compound Average Growth Rate (CAGR) to 21. 98% within the next five years (Herborist official website 2010). . 0 Marketing strategy The following is the market strategy for Herborist including the targeted market, position as well as marketing mix strategies, which is based on the above analysis. 4. 1 Target market As the organic cosmetic company, Herborist is specialized in herbal cosmetics. In the full of furious competition cosmetic market of China, the primary consumer target for Herborist is middle to upper income white collar females who prefer natural, mild but effective skin care products.The secondary consumer target is college female students, who look for mild products to maintain their young and fresh skins. This segm ent is focused on these female college students who prefer buying international cosmetic brand while have pressures on the pricing part. According to the survey that there is an increasing rate on the purchasing capability of female college or university students towards middle to high end cosmetic products, which is an important segment for Herborist to focus(AMA Communication Services). . 2 Positioning strategy Herborist will position itself as the middle to high end cosmetic products which focuses on the balance between traditional Chinese medicine theories adherence to Chinese elements of Tai chi, lotus, green and the high-tech means of modern technology to continuously introduce high quality new products to meet the needs of the consumers on their skin care. 4. Marketing mix Marketing mix describes these different elements such as price, product, promotion, place, people, and process and so on that marketers need to consider (Elliott, Rundle-Thiele, & Waller 2010), which is ess ential for Herborist to consider in its marketing process to achieve better performance. The following will analyze four areas of marketing mix including the aspects of price, product, promotion, and place for Herborist’s marketing process. 4. 3. Product strategy Product is defined as a good, service or idea offered to the market for exchange, which plays a vital role in the marketing process, which is the means for companies to satisfy the functional, social and psychological needs, wants and demands of customers (Elliott, Rundle-Thiele, & Waller 2010). For Herborist, it is important to emphasize the importance of the product strategy. 4. 3. 1. 1 Product diversification strategy Palmer (2009) advocated the importance of product diversification strategy, which is also proper for Herborist.Products all have their lifecycles and especially the skin care products have the relatively short lifecycle (Kotler& Armstrong 2008), so it is important for Herborist to focus on the produc t innovation and providing a wider product portfolio to meet the market requirements under deliberate market analysis. Moreover, besides the innovation on skin care products, Herborist is recommended to enhance its R&D capacity on color cosmetics, hair care, and men’s cosmetics to perfect it products range of cosmetic products.Only under these activities can Herborist meet Chinese customers’ consumption concept of pursuit for practical, fresh, beautiful as well as top quality. 4. 3. 1. 2 Establishing strong brand loyalty Kotler and Armstrong (2008) believe the importance of establishment of brand loyalty. For Herborist, besides the already built membership system, it is also recommended to apply for the ISO9001 quality system certification, which can enhance the customers’ confidence of Herborist to improve customers’ favorable attitude and purchasing behavior towards Herborist’s products. 4. 3. 1. Maintenance its orientation As the organic cosmeti c brand, it’s important for Herborist to maintain its advantage on herbal cosmetics. To search the future development, it’s so essential for Herborist to maintain its image of Chinese characteristics. Only depending on this distinctiveness, can Herborist have more chances to become world famous cosmetic brand just like the road of the body shop and Shiseido does. 4. 3. 1. 4 Developing the packing and design of products One of the important means for gaining more market share is to have a distinct product design and packing (Elliot, Rundle-Thiele & Waller 2010).For Herborist, it is essential to focus more on packaging design to attract more consumers with high quality packaging materials for different products series and give people impression of domestic goods while foreign quality. For instance, the introduction of Chinese elements can be adopted in the product designing and packing such as Chinese painting, lotus and so on are all very Chinese style and give people a n impression of elegance and fresh, which is fit for Herborist’s image of herbal cosmetics. 4. 3. 2 Pricing strategy The price of products setting has great influence on companies’ rofit and marketing process, as the competitive environment changes, companies are recommended to consider when to initiate prices change and when to respond to them (Kotler &Armstrong 2008). For Herborist, it is important to consider proper pricing strategy to respond to the fluctuant marketing environment. 4. 3. 2. 1 Prestige pricing strategy To maintain the image of middle to high end cosmetic brand and accelerate the pace of advance to the high-end market, Herborist is recommended to adopt prestige pricing strategy (Kotler & Armstrong 2008), which requires Herborist to introduce its new products as a relatively middle to high price.For instance, with the gift box priced at ? 500 CNY, New Tai Chi Mud Mask ? 380 CNY and so on, Herborist has set a relatively good image of middle to high end cosmetic brand which shows the image of prestige, quality and exclusively to Chinese consumers who often hold the opinion that high price means high quality(Whiteman & Krug 2008). 4. 3. 2. 2 Product bundle pricing The price of Herborist’s products is almost at the same level with the international middle to high end cosmetic products especially the Shiseido.To strengthen its position of middle to high end cosmetic brand, it isn’t recommended for Herborist to discount its products too much and too often, because there is a deep rooted concept among Chinese consumers that cheap means low quality. While to attract consumers, it is necessary to offer discount. So it is recommended for Herborist to adopt product bundle pricing, which means combining several products together and offering the bundle at a reduced price (Kotler & Armstrong 2008), which can help Herborist improve profit via motivating more buying power. . 3. 3 Promotion strategy Promotion is the creation and m aintenance of communication with target markets, which makes potential consumers, partners and society aware of. Deliberate designed promotion strategy can help Herborist make consumers aware of and interested in its products and effectively and efficiently communicate its message about the products to the market place (Elliott, Rundle-Thiele& Waller2010,). The promotion strategy for Herborist is as below. 4. 3. 3. Outstanding special features Because China's consumers are almost pragmatists, if we only use some abstract and vague slogan and general propaganda tactics, it is difficult to persuade consumers to buy the products. The professional TCM report plus practical description in advertisement is recommended to highlight the effect of Herborist’s products to strengthen the confidence of consumers’ brand loyalty. And meanwhile, it is also recommended for Herborist to offer some free trial to consumers to get more feedback after they used, which can also help Herbori st promote its products. . 3. 3. 2 Advertising and brand ambassador Based on the survey from Solomon (2009), celebrities and beauty experts have huge influences on cosmetic purchases in Chinese market, which results in consumers relying on trial and error from celebrities and beauty experts rather than spending too much money on their own cosmetic trials. Due to this special scenario, finding a proper brand ambassador is recommended for Herborist to attract more customers via the convincing power from celebrities.The proper brand ambassador can help Herborist reach the needs of more consumers and strengthen its healthy and fresh image as herbal cosmetics and enhance its brand cognition. At the same time, it is also wise for Herborist to strengthen its propaganda coverage via ads on the newspapers, magazine as well as in public places such posting large poster in bus station, MTR station and other public places to attract more attention, which can largely incent consumers’ des ire to purchase Herborist’s products.Furthermore, sponsoring TV and radio programs on healthy life and beauty can also help Herborist to portray the image of advocating healthy, natural brand. 4. 3. 3. 3 Perfect customer relation management (CRM) Palmer (2009) claimed that it is so crucial for companies to develop good customer relationships because good quality alone may be insufficient for a company to gain competitive advantages in increasingly competitive markets, while good customer relation management can supplement a firm’s competitive advantage.For Herborist, it is necessary to improve the pre sales and after sales service. For instance, before purchasing products from Herborist, it is necessary to give proper and professional suggestions and guidance, which is an important part of brand building. Furthermore, providing professional beauty care lectures for consumers, free skin analysis under the help of professional skin analytical instrument as well as provid ing customers with improved return protection to enhance the reputation and the customers’ sense of belonging are all good approaches. 4. 3. Place strategy Herborist has already built a diverse distribution channels to deliver its cosmetic products to consumers, such as opening counters in China’s major department stores, professional stores and setting up specialty stores to sell its products (Herborist official website 2010). To become a world class Chinese cosmetic enterprise, Herborist is recommended to expand and strengthen its distribution channel. 4. 3. 4. 1 Open counter in big chain supermarkets Big chain supermarkets in China are important sales channels for lower-priced cosmetics products in a long history.While due to the launching of middle–range brands of broadening products such as Mininurse, Garnier and Maybelline in these retail chains by L’Oreal, P and other cosmetic giants, big chain Supermarkets in China have become new channels for mid dle price cosmetic brand to reach a wider audience (Li & Fung 2009). These foreign-owned hypermarkets and supermarkets such as Carrefour and Wal-mart as well as locals such as Lianhua , Hualian as well as Trust mart are often the initial choices.For Herborist, it is also recommended to open counters to launch its middle price range products in these hypermarkets and supermarkets just like L’Oreal, P and other leading cosmetic companies do, which can help Herborist to reach its secondary consumer target of college female students and other consumers who are searching for middle price cosmetic products in supermarkets and hypermarkets. 4. 3. 4. 2 Online sales Online sales may just represent a small share in overall cosmetics sales, but we can’t ignore its potential.And on the basis of the data got from the China Internet Network Information Centre, in the first half of 2007 there are more than 70% of the 162 million Internet population aged under 30 (Li & Fung 2009), for Herborist it is a powerful channel to reach parts of its primary and secondary consumers such as the young female white collar and college students. Although Herborist has set up online platforms to show its products, it hasn’t begun its online sales.To capture the huge potential, Herborist is recommended to launch online sales on its online platform, just like other successful cosmetics players have done, including DHC from Japan, SaSa and Sephora (Li & Fung 2009). For launching online sales, it can help Herborist to save more cost in hiring stores. For instance, some professional software for online sales such as Integrated Distribution System adopted by P have the distinctiveness of quick, effective, low cost, low risk, which is recommended for Herborist to adopt (AMA Communication Services 2010). . 3. 4. 3 Choosing proper agent The failure of Herborist in Hong Kong market is as below (Herborist official website 2010). At first, Herborist directly copied the sales model o f the mainland market, which can’t localize itself it the Hong Kong market. Secondly, Herborist invest too much to build its sales channel, which largely increased its sales cost. Thirdly, the strong resistance to the new brand such as Herborist in the Hong Kong market, which cost Herborist too much to enhance its brand cognitive.For Herborist, it is more suitable to find proper local agent to facilitate it expand in the market outside mainland China. For instance, it is recommended for Herborist to relaunch its products in Hong Kong market via the cooperation with SaSa. As a Hong Kong-based cosmetics retailing and beauty services provider, SaSa has already built well sales network and is experienced in solving the problems on new brand cognitive as well as has a good image of cosmetics retailing and beauty services provider (Li & Fung 2009), which can facilitate Herborist successfully come into the Hong Kong market. . 3. 4. 4 Pharmacies As a organic cosmetic brand and specia lized in herbal cosmetics, Herborist is recommended to launched its products in pharmacies just as these successful cosmeceutical brands do, including French Eau Thermale Avene, Vichy and La Roche-Posay, Japan’s Kanebo, Freeplus and Shiseido Ferzea and so on.As the research from AMA Communication Services (2010) showing, the skin care products in pharmacies to Chinese consumers means mild, soft, effective and professional, that’s why most of the Chinese cosmetic consumers have begun to switch their choices to cosmetic products in pharmacies, especially after the Japan-based SK-II was tested and found to contain some unapproved substances in Chinese counter. For Herborist, pharmacies are recommended distribution channels to gain more potential consumers. 5. Budget for the next three years The Chart below outlines the following three years budgets of Herborist on sales, promotions, distribution, and other related areas from 2011 to 2013. Chart 1 Marketing budget chart fo r year 2011 to 2013 Items Budget for 2011Budget for 2012Budget for 2013 Advertisement ? 30,000? 40,000? 50,000 Sale force training and stimulation? 5,000? 5,000? 5,000 Distribution channel expansion? 3,000? 4,000? 5,000 Distribution channel maintenance? 2,000? 2,500? 3,000 Website maintenance? 2,000? 2,000? 2,000 Website improvement ? 0,000? 8,000? 8,000 Public relations? 4,000? 4,000? 3,000 R? 20,000? 22,000? 25,000 Total? 76,000? 87,500? 101,000 In thousands (CNY) 6. 0 Projected profit and loss statement The chart below is the d profit and loss statement forecast of Herborist for year 2011 to 2013 Chart 2 Projected profit and loss statement (2011 — 2013) Subjects Time ? Thousands (CNY)Total ? Thousands (CNY) 201120122013201120122013 Total sales revenue ? 1,200,624 ? 107,052 ? 1,093,572? 1,253,049 ? 120,493 ? 1,132,556? 1,367,446 ? 35,240 ? 1,232,206 Advertisement &Promotion? 30,000? 40,000? 50,000 Sale force training and stimulation? 5,000? 5,000? 5,000 Distribution channel expansion? 3,000? 4,000? 5,000 Distribution channel maintenance? 2,000? 2,500? 3,000 Website maintenance? 2,000? 2,000? 2,000 Website improvement? 10,000? 8,000? 8,000 Public relations? 4,000? 4,000? 3,000 R&D? 20,000? 22,000? 25,000 Tax ? 21,052? 21,961? 23,997 Other expenses? 10,000? 11,032? 10,243 Total expenses Profit In thousands (CNY) 7. Action program Herborist will implement series of activities to facilitate itself achieve its business objectives in from the year 2011. Chart 3 Implementation schedule Subject123456789101112Total ? (CNY) 76,000,000 Sale force training and stimulation 5,000,000 Modification and improvement on website. 12,000,000 Integrated propagandas campaign on targeting consumers via on print, radio, TV, internet means 4,000,000 sales promotion with the continuing of the multimedia advertising campaign. 30,000,000 Research and development on products 0,000,000 Deliberate research to expand its distribution channels and maintenance 2,000,000 Expansion of its business to more locations. 3,000,000 8. 0 Control & feedback 8. 1 Sales analysis Herborist is planning to strengthen the systems for sale analysis, due to the timely data on sales is curial for the whole marketing plan. Furthermore, the sales analysis is recommended to be implemented monthly, which can facilitate Herborist to develop contingency plans to address the fast moving environmental changes, especially the customers’ needs (Kotler & Armstrong 2008). . 2 Market share analysis Under the stage of expansion, the market share analysis is necessary for Herborist to conduct which is recommended to be done quarterly in order to watch the market closely. 8. 3 Profitability by product To facilitate R&D programs of Herborist, the profitability by products analysis can be done yearly and used as reference to help Herborist decide its future investment on products’ modification and innovation which can bring better profit for the company. . 4 Efficiency on advert ising, sales promotion analysis To analyze the efficiency of advisements and sales promotion quarterly for Herborist quarterly is essential, which can make Herborist have a clearly picture of the effectiveness its promotion strategy and facilitate the modification and better orientation of the advertising and sales promotion campaign more effectively in the following quarter. 8. Sales-force efficiency The sales force efficiency should be measured both on the bases of the sale volume that they have brought to the company, and the potential capability of staffs in the sale force, which help Herborist best position its sale forces to win more income. 9. 0 Reference AMA Communication Services 2010, High-end cosmetics trends in China, greenbook. org, viewed 11 July 2010, Chinairn 2009, (Successful case study on domestic cosmetic industry), chinairn. om, viewed 12 July 2010, Elliott, G. , Rundle-Thiele, S & Waller, D. 2010, Marketing, John Wiley & Sons Australia, Ltd, Australia, Herboris t official website 2010, Company profile, herborist. com. cn, viewed 11 July 2010, Kotler, P. & Armstrong, G. 2008, Principles of marketing, 12th edn, Pearson Education International, New Jersey, Li & Fung 2009, Latest developments of China’s cosmetics market, Li & Fung Research Centre, viewed 11 July 2010, Palmer, A. 009, Introduction to marketing theory and practice, 2nd edn, Oxford University Press, New York, Sephora official website 2010, Sephora stories, sephora. com, viewed 11 July 2010, Simon 2009, Herborist: A successful Chinese cosmetics brand, enovate 2010, viewed 13 July 2010, Solomon, J. 2009, Skincare companies dominating the cosmetic market in China, seekingalpha. com, viewed 14 July 2010, Ting, C. 2009, China’s homegrown makeup gains popularity, Beijing kswchina. om inc. , viewed 12 July 2010, Wharton n. d. , Special report: New challenge for made in China, electronic version, Boston Consulting Group, Whiteman, G. & Krug, B. 2008, Beauty and the beast: C onsumer stakeholders demand action in China, vol. 1, Journal of International Business Ethics, Xia XH. 2010, (Suggestions on strategic branding for Herborist), China's science and technology research center of citation index evaluation, viewed 14 July 2010,

Stephen Colbert on American Jobs

Stephen Colbert on American Jobs In Stephen Colbert’s book, America Again, Re-Becoming the Greatness We Never Weren’t, he talks about a wide range of problems in American society. They range from jobs to energy to healthcare, and of course, they are all written in a satirical sense. In the second chapter, Colbert and his writers talk about jobs in America. They discuss the problem of jobs being shipped overseas to countries like India and China and Colbert puts forth his â€Å"solutions† to the problems, which mostly include setting up sweatshops in America.He also talks about job interviews and how to be successful at them. Colbert and his staff of writers use a wide range of comic techniques in the book as a whole and in the chapter on jobs to satirize the American culture and government. One comic technique Colbert uses in the jobs chapter is reduction. Reduction is essentially belittling or degrading someone. Near the beginning of the chapter, there is a pict ure of Barack Obama being captioned as Jimmy Carter.While Jimmy Carter was a decent president and many historians agree that he didn’t do anything bad, he is widely remembered for not doing much of anything during his one term as president except failing to get the Americans that were being held hostage in Iran out safely. Barack Obama has a similar record of inactivity in his first term, so the book captions Obama as Carter to essentially say that Obama didn’t do much in his first term as president.Throughout the chapter and the whole book, Colbert and his writers use pictures to their advantage. This is a common technique in satire because it’s easy to get your message across using pictures. They are usually fairly simple, quick to look at, and easy to understand the meaning of. Colbert also uses caricatures to his advantage in the chapter on jobs. A caricature is usually some sort of picture of the person or group being satirized with their more unsightly fea tures being greatly exaggerated. It is a common technique used by satirists.Near the beginning of the chapter, there is a picture of an Indian woman going through the Kama Sutra exercises, a very old series of exercises used to strengthen the body and mind, while working at a call center. Through this picture, Colbert is talking about the problem of American jobs being shipped overseas. He also has a picture of a howler monkey named Bobo running a human resources department at a company. There is a common stereotype against human resources departments for not doing much work and making the employees’ lives difficult.The howler monkey is supposed to represent the HR department because it would be impossible to work with a monkey. Bobo even goes so far as to eat an employee’s paperwork, the equivalent of an HR department losing your paperwork. While pictures are of great use in satire, words can be just as effective if used properly. One technique Colbert and his writers use is burlesque, or the treating of a serious matter in a joking or flippant way. Burlesque is used throughout the chapter, but is used the most in the part about job interviews.Job interviews are extremely important, for they can make the difference between being hired for a job and not getting a job. In our current economy, interviews have become even more important because people are often in dire need of employment. Colbert devotes several pages to telling readers how to conduct a good interview. He tells the reader how many handshakes they should give, proper dress, and even how to appeal to the interviewer. Colbert also says to repeat the interviewer’s name many times.He says â€Å"Make a point of repeating your interviewer’s name as many times as possible as soon as you hear it† (Colbert 44). Colbert is essentially saying that by repeating the interviewer’s name, you’re flattering them, a common technique used by job seekers in interviews. Colbert satirizes the interview process as whole because he sees it as a joke and formality. He believes, and many will agree with him, that getting a job depends on flattery and connections with the interviewer. A fourth technique used by Colbert in the jobs chapter is reductio ad absurdum.This technique involves the satirist pretending to take the side of the person or group he or she is mocking in an attempt to further humiliate their subject. In the chapter, Colbert pretends to support sweatshops and shipping jobs overseas. He even goes so far as to suggest putting sweatshops in America and disbanding unions. In one of Colbert’s â€Å"truth punches† he says â€Å"The minimum wage ruined the proud American tradition of the sweatshop. You start paying American workers a minimum wage, the next thing you know they’re demanding air-conditioning and less flammable shirtwaist materials† (Colbert 30).The conditions he describes are very common in sweatshops around the world and are obviously a huge health and safety hazard. However, they make manufacturing cheaper and the lack of labor laws allows them to force their employees to work in the aforementioned conditions. Colbert pretends to support these views because by doing so he can make fun of them more effectively. Also, he highlights the extreme working conditions because by doing so, he can show the absurdity of both sweatshops and the argument for them.He can pretend to support horrible working conditions and still be viewed as humorous because everyone knows that those conditions are inhumane. One characteristic of satire that Colbert and his writers use in the jobs chapter is obscenity. At the beginning, he makes fun of the Rosie the Riveter, a common figure for female empowerment during World War II. He describes Rosie as â€Å"History’s most thinly veiled lesbian-I have worked hard to remain ignorant of whatever depraved act ‘riveting’ is† (Colbert 21).He also talks about Alan Greenspan’s scrotum and puts in a picture of it. The obscenity does not really have any purpose in satirizing Americans and their jobs. It’s there mostly for the sake of making the reader laugh and want to continue. Exaggeration is easily one of the most common, if not the most common, characteristics of satire. The chapter and the book as a whole are filled with exaggerations of varying amounts. He uses a â€Å"quote† of Ayn Rand’s, which says â€Å"Any man using the words of another is an unthinkable parasite worthy of contempt and death† (Colbert 25).Obviously Ayn Rand never said this; it’s a rather extreme thing to say and would have damaged her credibility. Colbert uses exaggeration in this instance to satirize Rand’s views of the working American. She is widely known for being a conservative and scorning Americans who don’t work and live off of the benefits of society. Colbert also uses this q uote as an opportunity to take another swing at the Republicans. By making fun of a popular conservative, he is, by association, making fun of conservatives as a whole.The style of satire that Colbert and his writers use is a monologue. In a monologue, the satirist speaks from behind a mask. In America Again, Colbert is the narrator, and he uses this position to satirize more freely. By staying as himself, he can use the persona he has on his tv show, and he doesn’t need to spend time creating a character to speak through. This is also advantageous when using the reductio ad absurdum technique because most readers will already know that he doesn’t really support the side he’s pretending to be on, and they can appreciate the comedy more.The chapter on jobs was very amusing and did a good job of satirizing American jobs and American’s views on jobs. He satirizes how Americans preach the need to bring jobs back to America from countries like India and China, but no one is willing to lose money by investing in more expensive American workers. Works Cited Colbert, Stephen, Michael C. Brumm, and Andrew Matheson. â€Å"Jobs. † America Again: Re-becoming the Greatness We Never Weren't. New York: Grand Central Pub. , 2012. 16-47. Print.

Readings Essay Example | Topics and Well Written Essays - 500 words

Readings - Essay Example However, time is limited and progressive even as the individual undergoes the cycles. Many of the creatures that appear around or live in the river are significantly associated with the Egyptian gods and goddess. Moreover, the striking fertility of the Nile as compared to the barren condition of the barren land in Egypt made the Egyptians believe that their deities were dwelling around this fertile place. the Nun, Ogdoad, and the primordial Egyptian gods are believed to have lived around the Nile. The river acted as physical evidence that augmented Egyptian mythologies as many people could see the river. Geographically, Egypts Nile River valley was comparatively secluded from other hubs of civilization and the Egyptian religion remained unscathed by the views of foreign philosophies. The diverse pantheon of deities that existed fueled civilization and evolution of the myth that was meant to explain the world. The geographical, especially the apt weather in the Nile region, conditions also presented an inordinate opportunity for the Egyptians to explore their world a factor that significantly contributed to the rise of civilization. Various challenges confronted the Egyptians and had to devise elucidations and/or solutions. The availability of the Nile was an inordinate opportunity for the Egyptians to invent technologies that will enable them harness and reap maximally from the natural water source that was believed to be of utter significance in their existence. The legends and religious beliefs of the ancient Quichà © Maya who inhabited Guatemala are expertly described in the Popol Vuh. It starts with an exploration of the anthropomorphic lineages and clinches with a regnal pedigree, to assert that the Maya people rule the land by divine right. The Popol Vuh shows the various attempts that the maya deity did in an effort to create and transform the Maya people. The indigenous

Constitutional Challenges Associated With Investigating Cybercrimes Term Paper

Constitutional Challenges Associated With Investigating Cybercrimes - Term Paper Example However, these developments have presented the world with new types of threats that can potentially compromise security, privacy, and safety of the internet users. As a result, there have emerged modern systems of law enforcement that are aimed at providing security and order and at the same time maintaining liberty and freedom in an open society. Rapid technological developments have called for intense policing of cyberspace as these developments have threatened to cyber security not just in individual countries, but has also transcended individual countries boundaries (Walden, 2005). Cyber security has been threatened by the new methods of communications and increasing freedom and anonymity in communications. There has been increasing need to balance between providing order and security in the cyberspace and maintaining freedom and liberty in the society. Cybercrime is the term that is being in describing security challenges and threats that the cyberspace is facing in the face of rapid technological developments. In simple terms, cybercrimes are defined as any criminal acts which deal with computer networks and computers. Also, cybercrimes are defined as the criminal acts or offences which are committed against groups of individuals or individuals with a criminal intentions aimed at harming the reputation and status of the victims or to cause mental or physical harm to the victim either indirectly or directly, through the use of modern networks of telecommunications such as the mobile phones and the internet. Cybercrimes not only threatens individuals’ security, but also threatens national and international security. Issues that surround cybercrimes include copyright infringement, child grooming, financial theft, privacy, cracking, espionage, cyber terrorism and child pornography among others (Hinde, 2003). It is agreeable tha t cybercrimes is one of the most serious crimes that the world is facing currently as it threatens not only individuals’ security but also national and international security. The serious nature of these crimes is evident by the intense measures that have been put in place to counter them both at the national and international levels (Taylor and Morgan, 2002). There are concerted efforts among all the telecommunications players, national governments, and the international community to counter cybercrimes and the threats that such crimes present. However, whereas there is the desire to counter cyber crimes at all levels, this desire and efforts are hampered by the various challenges associated with investigation and prosecution of cybercrimes. One of the main challenges that face efforts to counter cybercrimes is constitutional challenges. In particular, constitutional challenges greatly hamper the efforts to investigate cybercrimes (Walden, 2005). In order to have a deeper un derstanding of how constitutional challenges affect cybercrimes investigation, this paper will seek to analyze the constitutional challenges and how they are associated with investigating cybercrimes. In the United States, just like in most countries of the world, all the laws and procedures and practices such as investigation and prosecution should be consistent with the constitutio

Alternative Ways to Present Data Research Paper Example | Topics and Well Written Essays - 750 words

Alternative Ways to Present Data - Research Paper Example The latest visualizing health policy info-graphics is a flowchart exemplifying the mechanisms through which people will access healthcare services beginning in 2014. The visualizing health policy of this month provides a step-wise guide through the requirements and options for health coverage under the Affordable Care Act beginning in 2014. This will include other factors such as coverage through an employer, coverage through Medicaid, and coverage through a health insurance exchange (Teitelbaum & Wilensky, 2013). The data is represented in a chart flow as shown below. (http://www.kff.org/healthreform/jama_infographic_1212.cfm) Data presentation is a critical section of reports, research, proposals and other important demonstrations during the course of daily meeting and vital essential presentations. In most cases, the presentations are either visual in nature or depend on a good visual elements for precision and information delivery. With the emergence of technology, the visual tra nsfer of data is accomplished through computer projectors and program like Microsoft PowerPoint. This has made transfer of data easier than ever, and at the same time making it easier to produce a tangible form of the data faithful to the presentation with the printed slide. There are several methods that can be used in data presentation. They include; graphical, tabular, textual, data flow diagram symbols, pie charts, scatter plots and much more methods of data presentation. However, it is worth noting that the method used to present a particular data depends on whether the data is qualitative or quantitative. In the above report- Visualizing Health Polic

Avivas Leadership Power and Motivation Lab Report

Avivas Leadership Power and Motivation - Lab Report Example Aviva is the largest general insurer in the UK and has close to 31.5 million customers spread across the 16 countries. According to the company website, the company attained 2.2 billion UK pounds in profits after tax in 2013 compared to 2.9 billion pounds reported in 2012 (Aviva 2014). The cash remittances grew by 40 percent to reach 1.3 billion UK pounds while the new business increased by 13 percent to 835 million during the year 2013. In the current 2014 financial year, Aviva is focused on improving the cash remittances while improving the life insurance business segment through differentiated pricing and building strategic partnerships in emerging markets (Aviva 2014). Aviva’s strategic framework is focused on investment, customer, distribution, and people Aviva has attained excellent performance in five metrics that include cash flow management, operating profits, a value of new business, expenses and combined operating ratio due to excellent leadership and people management. Aviva has a diverse product portfolio and highly talented employees that cater to the changing financial planning and insurance needs of both rural and urban customers (Aviva 2014). Leadership is a critical aspect of Aviva’s success since the management is committed to the organizational goals and has outlined a clear vision that is focused on increasing returns to the fund investors and satisfying the insurance customers. Another key aspect that has fostered Aviva’s growth and profitability is motivation since the employees are committed to higher performance in their jobs. The report will discuss the success of Aviva using organizational theories and c oncepts of leadership and power. The second element of organizational design and management of people that will be the motivational strategies that have been used by the company to ensure high employee performance.

An analytical managerial review of In or Outsourcing in the IT Research Proposal

An analytical managerial review of In or Outsourcing in the IT industry - Research Proposal Example the basis of its enormous importance, it was important to choose the Information technology industry as the basis of this research project; it will serve as a dynamic topic of discussion that will have immense importance in the future. Also, information technology is my field of career; working on information technology will benefit my employer as well. It will help me increase my knowledge on a subject that I have immense interest in. In order to work on analytical managerial review of an organization in IT industry, I have chosen my organization as the subject. The research on information technology will not only help me enhance my capabilities in this area, but will also greatly help my organization. With the advent of numerous outsourcing options; the question today is not about to outsource or not to outsource. The new dilemma is to introduce the right kind of IT System at the right time with the right price point. The right decision at the right time about the right system is the key. Therefore, the tile of this research proposal is In or Out? – using the words from in sourcing or out sourcing; which management strategy works better for organization. As the head of ICT services, the project is extremely close to my interest, my line of career and will greatly benefit my organization and the field of IT as a whole. As mentioned above, it is not about outsourcing, it is about the time and price at which outsourcing decisions should be taken. As the environment is changing with each passing day, so is the development of the field of IT and its relative importance to the business technology. This changing environment can be greatly noticed in the information technology industry. In the current global financial environment, organizations are required to produce immaculate synergy; producing more than ever from the limited resources put in the system. The geographical location is more of a limitation that is mitigated by operations all across the

Topic picked from the book clockwork orange Research Paper

Topic picked from the book clockwork orange - Research Paper Example R. Deltoid, The prison chaplain, Billyboy, The prison governor, ‘Minister of the interior’, Dr. Branom, Dr. Brodsky, F. Alexander and Cat woman. The novel was purposefully written to show people that their past does not matter, and that whatever they were they can change from their past. Alex is the main character in the book, being portrayed as the violent one. Certain quotations from the book are subject to interpretation, and will be looked at in this essay. The first chapter has a quotation that catches my eye, which reads, â€Å"What’s it going to be then, eh?† There was me, that is Alex, and my three droogs, that is Pete, Georgie, and Dim. Dim being really dim and we sat in the Korova Milkbar making up our rassoodocks what to do with the evening, a flip dark chill winter bastard though dry (Burgess, pg 10). In this extract, Alex has been portrayed as the figurative bad guy in the novel. He has a show of might and rank, calling his friends droogs, mean ing that they answer to him. Alex is liberal, and this can be viewed by the use of his slang language. He uses the language liberally and without worry. I can’t help but notice that he has taken the role of a leader, in that he is the leader of his gang of friends. Alex stands for a typical and highly successful teenager. This can be seen by the way he has dressed while with his gang, â€Å"The four of us were dressed in the height of fashion† (Burgess, pg 10). Also noticeable is how he tells of their wealth, â€Å"Our pockets were full of deng, so there was no real need from the point of view of crasting any more pretty to tolchok some old veck in an alley and viddy him swim in his blood while we counted the takings and divided by four, nor to do the ultra-violent on some shivering starry grey-haired ptitsa in a shop and go smecking off with the till’s guts. But as they say, money isn’t everything.† (Burgess, pg 10) From this extract, I can say th at Alex is in himself a master at the game of violence, and at everything he does. Though he knows violence and has participated in it, he still believes that there is more to life than money. From these quotations, a lot can be studied according to his personality. I can conclude without doubt that Alex is generic, mindless, has considerable knowledge of evil, substantive, is highly individualistic and from the looks of it is likeable from the way he carries himself. As soon as his own boost kicks in, Alex leads his gang into the streets, where they find an old man carrying books home from the library. Sensing his fear, they first play with him for a few moments before beginning to assault him. After ripping apart his books and taking his false teeth together with his clothes, they let him walk away whimpering. The gang continues in their violent spree until the law catches up. He is betrayed by the very people he leads, with his one violent scheme not going according to plan. Dim betrays him, and he finds himself beaten up and being forced to confess to his crimes. This shows that Alex is trusting, though from this it seems he trusts the wrong people. I see this in the extract, â€Å"Bog murders you, you vonny stinking bratchnies. Where are the others? Where are my stinking traitorous droogs? One of my cursed grahzny bratties chained me on the glazzies. Get them before they get away† (Burgess, pg 66). Dim chained him, and the rest were nowhere to be seen. He learns his lesson the hard way.

INTERNATIONAL BUSINESS AND GLOBALIZATION (MARKET EVALUATION AND Research Paper

INTERNATIONAL BUSINESS AND GLOBALIZATION (MARKET EVALUATION AND STRATEGIC PLANNING PROJECT) - Research Paper Example By providing an overview of the geographical markets, overall sales/market share, expectation for future sales growth, profitability potential, and seeking to analyze and understand the firm’s geographic growth strategy, the reader/researcher is able to determine a great deal with regards to what may take place within the future without ever having to suffer the risk and danger of blindly testing a highly costly product line in a market or with a given demographic of the consumer base that would ultimately reject it. Background Begun in 1959, Dubai Refreshments originally was located on Maktoum Street in central Dubai. In such a way, it comes as no surprise that the full power of the most potent geographic market for the firm’s offerings exists within the continents of Africa and Asia. Although the firm has experienced a great deal of growth domestically, it has yet to fully leverage a degree of potential international growth. In such a fashion, for the nation of the Un ited Arab Emirates, Dubai Refreshments exhibits nearly a 70% market share with regards to energy drinks. Similarly, due to the fact that population of Dubai and the surrounding region has grown exponentially within the past several decades, the firm is able to integrate its products with a broader and broader market segment than it would have before thought possible. As a direct result of this, profitability has increased alongside this population growth. Although Dubai Refreshments is considered a bonafide distributor of PepsiCo drinks, the firm in and of itself exhibits complete autonomy and is not a subsidiary of the global beverage giant. Such a level of autonomy means that Dubai Refreshments is able to integrate within the global market and seek to leverage a degree of success for itself without being under the constraints of any contractual obligations or limitations placed upon it by a third party or ultimate conglomerate of ownership. Market Analysis/Evaluation Although it i s ultimately the intention of Dubai Refreshments to engage in a broad marketing plan that will see each and every one of its sectors grow in overall sales, the purpose of this specific strategy is with regards to seeking to leverage a degree of growth within the market of Vietnam; seeking to promote the drink company in an emerging market as a means of breaking out from the formerly â€Å"domestic only† lable that the firm has crafted for itself. As will be discussed below in the analysis, the reasons for choosing Vietnam are multiple; however, the nation itself has not been chosen merely on one or two determinants. Rather, it has been chosen due to the fact that it is the belief of these authors that this particular nation represents the greatest overall possibility with regards to future growth and international development of the brand. Social Issues Although long overlooked as something of a backwater communist relic, the nation of Vietnam has experienced a rapid amount o f economic growth within the past several years. Due to the rapid level of economic growth, the human development Index and the gross domestic product of the nation of Vietnam has risen precipitously alongside this form of development. A further reason why the nation of Vietnam is been chosen with regards to the international expansion of Dubai

Malcolm Gladwells 'Blink' Essay Example | Topics and Well Written Essays - 1000 words

Malcolm Gladwells 'Blink' - Essay Example For one, Gladwell is on a sticky wicket. The techniques and reasons are too complex to explain. For another, Gladwell knows what he is talking about. And finally, everyone else knows what Gladwell is talking about. On the spur moment decision, off the cuff remarks, gut feelings, intuition, quick thinking, customarily yield positive results, oftentimes because the person making the decisions and statements know very well what is going on and the reasons behind his or her decisions. Anyone who has read 'Blink' may understand the author's core issue. In simple terms, he is talking about the power of perception. One finds it difficult to disagree with the notion that he or she has never been in a situation when an intuitive stand or decision yielded positive results. The situation may be as varied as the ones author has touched upon, viz. deciding whether a statue is a fake, deciding whether a surgeon is likely to get sued for malpractice, and deciding whether the inhabitant of a particular dorm room is likely to be conscientious. In each case on which the author has elaborated the one making the decision did so with minimum information on hand, two seconds to decide, and with formidable consequences should the decision go wrong. Dr Atul Gawande is more succinct on the issue. ... Dr Atul Gawande is more succinct on the issue. In his book, 'The Bell Curve.' he cites examples of the Cincinnati Children's Hospital and Fairview University's Hospital at Minneapolis to illustrate background, the prevalent status, and the determination to turn around from mediocre to achievements, by skilled team of doctors to improve results from below average practitioners to trail blazers. They do so without any recourse to fresh medical training. They do so with determination, discipline and professional aggressiveness to ensure patients' recovery. Gawande's point of view is that it is not only professional qualification and capabilities, but practice and personal determination to succeed that drives one to achieve feats which may otherwise look impossible. [Atul Gawande].1 Correlation and Calculation In the instances of both Malcolm Gladwell and Atul Gawande the risk factors are overwhelming and possible solutions depend on 'thin slicing' - filtering the very few factors that matter from an overwhelming number of variables. [Malcolm Gladwell].2 Normally everyone is taught not to make hasty decisions, look before leaping, think, look at all angles, don't go by feelings, and to make maximum efforts at information gathering and consultation before making a decision. However, not everyone is instructed on how to go about handling a life and death situation, a crisis, walking tightrope over the Niagara, or accompany a close relative on his or her last walk to the gallows. Moreover, it is natural to pass the buck in a crisis situation or as a last resort, leave difficult, dangerous, embarrassing, debilitating situations to the Almighty in prayer! The person facing the crisis is a lone ranger facing the most unfortunate situation in his or her life.

Minimum Wage Legistlation Essay Example for Free

Minimum Wage Legistlation Essay What are your thoughts about minimum wage legislation? What kind of a price-control policy is this? Who gains? Who loses? Are there alternatives to this legislation for achieving the same policy objectives? What role do demand and supply elasticities play in determining outcomes? The purpose of minimum wage legislation is to make sure employers will not under pay its workers and ensure that workers are paid fairly I think it is good for the employees, however it can be a detriment as employers cannot afford to pay the minimum wage so they must hire less employees in order to satisfy the minimum wage requirement. Especially in today’s economy workers would accept jobs at rates below min wage, however employers cannot. The government sets these price floors and it can have two effects minimum-wage laws can create unemployment among unskilled workers, but minimum wages does raise the income of poor workers who remain employed in regulated markets. The price elasticity of demand measures the sensitivity of the quantity demanded to price. The price elasticity of demand is the percentage change in quantity demanded brought by a 1 percent change in price. The value of price elasticity of demand for a normal good must always be negative, reflecting the fact that demand curves slope downward because of the inverse relationship of price and quantity. The price elasticity of supply measures the sensitivity of quantity supplied to price. The price elasticity of supply tells us the percentage change in quantity supplied for each percent change in price. The value of price elasticity of supply for a normal good must always be positive, reflecting the fact that supply curves slope upward because of the positive relationship of price and quantity.

Marketing Plan of Nestle

Marketing Plan of Nestle Nestle is the leading FMCG company of Switzerland established by Henri Nestle. Nestle is serving worldwide with its more than 500 factories in 86 countries comprising almost all continents. Nestlà ©s product portfolio is more than 500 products all over the world serving best to their customers. Henri Nestlà © endowed his company with the symbol derived from his name. His family coat of arms, the nest with a mother bird protecting her young, became the Companys logo and a symbol of the Companys care and attitude to life-long nutrition. The Nestlà © nest represents the nourishment, security and sense of family that are so essential to life Launched on the North American market in 2003, Nestlà © PURE LIFE is destined to become the worlds top and most widely distributed brand by 2010. Nestle is also willing and has goal to achieve the $1 Billion enterprise by 2014. Nestle Pure Life is a premium drinking water, produced to the highest standard of safety and purity. The company is seeking to provide customer with pure drinking water on suitable prices make the product as convenient as possible. According to their claim that they provide the best food throughout the world Nestle is leading brand in water market and has left behind many local brands which were working before the launching of Nestle Pure Life. Now it has maximum market share in developed and major cities of Pakistan like Lahore, Karachi, Islamabad, Multan, Hyderabad and many others. As we have discussed earlier that Nestle is going to become the fully market leader of water market in Pakistan, signs are clearly visible to achieve the set point of Nestle. Nestle Pure Life is also the star product of Nestle Pakistan and most probably all over the world where Nestle Pure Life exist. Here you can see the market share chart for the product and after that there is a Boston Consultancy Group Matrix is shown which would describe the ranking of Nestle Pure Life in product portfolio of Nestle Pakistan. Nestlà ©s business objective is to manufacture and market the Companys products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners. Nestlà © recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs, and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. Nestlà © continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. According to our observation and market survey, we have concluded that as such there is not set demographic techniques to set the specific target market. Because, water is something that everyone uses. Everyone can use any size of bottle that Nestle is offering. There are some variations that can be made throw OUR OBSERVATION but not from the company Nestle Pure Life comes in four different sizes. These four are targeting different types of people and lifestyles. The smallest size of Nestle Pure Life Water of 0.5L. This size is being heavily used by the consumers in place of soft drink. University and Colleges are also included in its target market of this size. But the product is used by everyone in the society also. It is not only specified people that have been discussed above. The second size of the Nestle Pure Life Water which is about 1.5L. This size is being used in mostly meetings. You can say that any kind of organizational meeting or any other social meeting, this product i s being used. The third size of the Nestle Pure Life which is used in mostly houses and offices in the waiting area. The fully household product and also using in executive rooms in offices with the dispensers. This Nestle Pure Life Water Bottle is also very helpful in many dispensers available in the market with good options We can easily observe that Nestle itself is not taking active part in social welfare. And on the other hand, we see the lower prices of the product as compared to the other FMCGs Companys products like Unilever, Colgate. Palmolive and Procter and Gamble. If we look at the prices, we can observe that Nestle is also using its name for the promotional activities and pricing strategies also. They have to maintain their level of efficiency and always provide the best at best price. Nestle cares about the customers. As the time is of inflation, nestle is trying to overcome the pricing problems to the extent they can do. Nestlà ©s point of view is Only by understanding their needs can we serve our consumers to the fullest Profit earning is the core aim of every company but in case of nestle their profit margin is small just for the sake of customers trust and happiness. Only a few amount of profit is collected from pure life water. Nestle always strive to give superior product at low rates . Nestle is also one of the leader of retaining their customers. This is one reason of their success. They use the simple formula for the price that is Cost + Profit. The main reason is Pure Water which is the name of this product. Rests of the water products are using chemicals which can be harmful for the human body but Nestle Pure Life is the only water product which is pure in nature. That is also the unique selling point of Nestle Pure Life. This is the most powerful point that is in the mind of the customers while purchasing any water bottle in their routine life. The brand name is also very important for the consumers. The slogan of Nestle is Good Food Good Life. That is very attractive slogan people can attract from. It puts the perception in the minds of people that theyre being offered good products for their healthy lifestyle. If you look at the logo of Nestle, youll get to know that a bird is feeding the children. Obviously a mother cant deceive the children. Nestle pure life is a brand of nestle which explains a big symbol of quality to customers. Nestle Pure Life shows in their ads about the purity of water and the water need for you r body. In its launching advertisement, the company advertises Nestle Pure Life very successfully. In that advertisement, a lady is drinking Nestle Pure Life Water and then it goes towards inside the body to show the functions of pure water. That was the awesome commercial that boosted the sale of Nestle Pure Life. Nestle is also advertising on famous websites like you can observe that whenever you will login to your face book account, the ads of Nestle will be there. There are number of sign boards and banners you will see in the cities to aware people about the products of Nestle. Thus, Nestle is using all types of media to advertise their products in anyway. When Nestle Pure Life was launched, they distributed the free samples of 0.5L bottles for market testing and for their advertising purpose. Then a short walk was also arranged for the sake of good health and seminars was also conducted to make sure about the pure water needed your body. To understand the depth of Positioning, we will divide into three steps The final aspect of the micro environment is publics, which is any group that has an interest in or impact on the organizations ability to meet its goals. For example, financial publics can hinder a companys ability to obtain funds affecting the level of credit a company has. Media publics include newspapers and magazines that can publish articles of interest regarding the company and editorials that may influence customers opinions and our mostly products are selling on the public advertisement because the people are the too much concision about their health. Government publics can affect the company by passing legislation and laws that put restrictions on the companys actions. Citizen-action publics include environmental groups and minority group and can question the actions of a company and put them in the public spotlight. Local publics are neighborhood and community of the organizations and will also question a companys impact on the local area and the level of responsibility of their actions. The general public can greatly affect the company as any change in their attitude, whether positive or negative, can cause sales to go up or down because the general public is often the companys customer base. And finally, the internal publics impacts include all those who are employed within the company and deal with the organization and construction of the companys product. Each market impact has different characteristics and causes they find important. This can be beneficial to a marketer as they can decide who their product would benefit most and tailor their marketing plan to attract that segment. Demography covers many aspects that are important to marketers including family dynamics, geographic shifts, work force changes, and levels of diversity in any given area. Another aspect of the macro environment is the economic environment. This refers to the purchasing power of potential customers and the ways in which people spend their money. Within this area are two different economies, subsistence and industrialized. Subsistence economies are based more in agriculture and consume their own industrial output. Industrial economies have markets that are diverse and carry many different types of goods. Each is important to the marketer because each has a highly different spending pattern as well as different distribution of wealth. The natural impacts: The natural environment is another important impact of the macro environment for the organization. This includes the natural resources that a company uses as inputs and affects their marketing activities. The concern in this area is the increased pollution, shortages of raw materials and increased governmental intervention. As raw materials become increasingly scarcer, the ability to create a companys product gets much harder. Also, pollution can go as far as negatively affecting a companys reputation if they are known for damaging the environment. The last concern, government intervention can make it increasingly harder for a company to fulfill their goals as requirements get more stringent. The technical impacts: The technological environment is perhaps one of the fastest changing factors in the macro environment. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. As these markets develop it can create new markets and new uses for products. It also requires a company to stay ahead of others and update their own technology as it becomes outdated. They must stay informed of trends so they can be part of the next big thing, rather than becoming outdated and suffering the consequences financially. The political impacts: The political environment includes all laws, government agencies, and groups that influence or limit other organizations and individuals within a society. It is important for marketers to be aware of these restrictions as they can be complex. Some products are regulated by both state and federal laws. There are even restrictions for some products as to who the target market may be, for example, cigarettes should not be marketed to younger children. There are also many restrictions on subliminal messages and monopolies. As laws and regulations change often, this is a very important aspect for a marketer to monitor. The final aspect of the macro environment is the cultural environment, which consists of institutions and basic values and beliefs of a group of people. The values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and secondary beliefs, which tend to be easier to influence. As a marketer, it is important to know the difference between the two and to focus your marketing campaign to reflect the values of a target audience. Nestle is the world leader in FMCG industry. People trust on the products launched by the company even the product is facing some problems. Nestle was doing its good job in past but now it is facing some problems of low quality of their products. Nestle is sued by someone they claim that they are doing unethical business. They are mixing unhygienic things which can cause damage to customers health. Its example is that their water is not pure and good for health. You can see dust partials in Nestle mineral water when you keep it in sunlight that shows its product quality is down. Now they have to do more making their strong position in market because when you lose your image in customers eye then it is difficult to renew their image. Marketing plan of Nestle Marketing plan of Nestle MARKETING PLAN OF NESTLE NESTLE Nestle had setup its first plant in 1961 in Moga (Punjab). The company is acknowledged as one of the leading companies in the FMCG sector with â€Å"Top rated wealth creators of India â€Å". It is progressively evolving into food, beverage, nutrition, health, wellness, and touching lives of people. Nestle India has strong brands like Maggi, Nescafe, Cerelac, Lactogen, Kit, Kat Polo, Milo and Polo. It has set up â€Å"Cafe Nescafe â€Å"and â€Å"Coffee Corners† in mini metros. Nestle is leveraging the vast consumer base in India. There has been continuous focus on values. NESCAFE In Hebrew, the word â€Å"NES† means Miracle â€Å"CAFE† means Coffee so together its a miracle with coffee. Nescafe believes in innovation, improvement, thrust on value for money. Nescafe leads the market of instant coffee with Rs.361 crore. The companys beverage products generate 22% of the companys total revenue. Nescafe has pushed into more diverse media. Global Coffee market s segregated into three segments: Instant Coffee Roast And Ground Coffee Chicory Despite the ever increasing choice available to the consumer, Nescafe original maintains its position as not only the nations favourite coffee, but also the leading hot beverage brand overall. In 1930, the chairman of Nestle in Switzerland was approached by the Brazilian coffee institute and asked to develop coffee that was soluble in hot water and retained its flavour. From these beginings came not only the worlds first instant coffee, but also the emergence of a classic brand of the millennium. After years of painstaking research, scientists at the Nestle research laboratory in Switzerland finally achieved the desired results, and on April 1, 1938, Nescafe was launched in Switzerland. Nescafe original holds the pre-eminent position with a 36.5% retail share of the instant coffee market. The coffee sector s led by Nescafe brands which account for 55% of all instant coffee sales n the UK. BUSINESS STATEMENT Nescafe business objective , and that of management and employees at all levels , is to manufacture and market the Companys products in such a way as to create value that can be sustained over the long term for shareholders , employees , consumers , business partners and the large national economies in which Nescafe operates. Nescafe is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. It continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. It s conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and the employees. Therefore recruitment of the right people and ongoing training and development are crucial. MARKETING OBJECTIVES We are going to use the method SMART: Specific: The objectives have to be clear. For example, in each shop, the company of â€Å"NESCAFE† must achieve the selling objectives. The turnover to reach will not be the same in the different shop because we make the selling objectives according to size of the shop, the frequentation, the type of the clients. Measurable: The company has to follow the different targets in the sales outlets and if each Shop allowed reaching the objectives. To measure the sales we can calculate the sales by day In order to understand how the client bought the product. With these data we can improve The strategy and the sales. The commercials can ask to the supermarket to put the product in A different way or to make more promotion. Achievable: The targets have to be realist. At the beginning the turnover would grow slowly and after the promotion, it would have a faster expansion. If we reach to win clients from Our main competitor (in a first time) and from the others tea brand (in a second time), the Sales would grow increasingly. The firm should have a long terms vision and should bereactive in front of decisions or problems which can occur. Relevant: the objectives have to be founded on fact and not on suppositions. The firm has to Respect its general strategy and its image. The firm should take into consideration the sales Of its competitors in order to be based on relevant objectives. Timed target: each objective should have a deadline. It can allow measuring the different Sales of the day, of the week, of the month, according to these data, the firm can change the Objectives or makes promotion to reach these objectives. INDUSTRY ANALYSIS TRENDS: In 2005, the tea industry reached the $1.7 billion category and it is expected to continue growing indefinitely (Mintel 2005). Market analyst believe the tea industry will continue to boom and is not expected to reach saturation level in the near future. The favourable movement in the tea industry can be attributed to two major factors: (a) Consumers need for convenience and time-saving services; and (b) the positive press given to tea. For the last decade, the health benefits of tea have gained wide coverage in the media. Studies continue to show the beneficial properties of tea, with health benefits ranging from lower cholesterol levels to improve arterial health and decreasing chance of cancer. This positive press has definitely catapulted the demand for tea. Consumers believe that tea is very good for the body, thus, it is more logical to drink more tea and less soda pop and other drinks. Consumer considers Nestea as a healthy habit. COMPETITOR: One of the major competitor for Nescafe tea in the world tea markets Lipton tea. Moreover the alliance between Unilever and PepsiCo is expected to enable Lipton to strengthen its global position. Lipton tea is going above and above these days, so the competition would be strong. There are other tea also, like Tetley who s gaining good market. CUSTOMER PROFILE: There are two major target markets for ready-to-drink tea. One group s the consumers on the go. These are the employees, students, and other consumers who lead a busy lifestyle. Thus, there is a need for products that are accessible and readily available. Convenience has dominated the market, particularly the food and beverage industry. The other group is made up of health conscious consumers, specifically the baby boomers who patronize anything healthy. SWOT ANALYSIS Strengths Great leap forward in media. Sustained improvement in customer service levels. Global leader in instant coffee the company has a clear global lead in the important coffee sector, which is growing significantly in emerging markets, accounting for 21% of global value in 2007. It has solid financial base. Nestle has a number of cost-saving programmes in place and as a result ,has been able to place itself in a position where it is able to afford sizeable investment in brand development. Weaknesses Agencies spent all their time fighting each other. Adopted a pricing strategy higher than competitors. The mass-market positioning of Nescafe, presents significant difficulties in terms of tapping into the growing demand for premium coffee products. Nescafe has developed only minimal presence in tea, a sector which is benefiting notably from the rise in consumer health-consciousness. Opportunities Shortage of tea supply unlikely. Consumers are living a healthier lifestyle. Growth in tea market due to promotional efforts of healthy attributes of tea. Euro monitor International forecasts that Asia-Pacific will be the fastest growing market for hot drinks over the 2007-2012 periods. As Nescafes largest regional market, Asia-Pacific therefore presents significant opportunities for the company n spite of poor conditions in major Western European markets. It could further develop its confectionary brands n other hot drinks along the lines of existing products. Threats High quality tea prices will increase moderately. Tea market is very competitive and relative elastic. Sluggish prospects in developed markets market maturity and aggressive competition amongst retailers are set to constrain hot drinks growth severely in major developed markets during the forecast period. Increasing transport and raw material costs, mainly relating to rising bean, oil and packaging prices, are placing significant pressure on margins in the companys beverage operations. MARKETING STRATEGIES Nescafe FMCG giants wants to be a â€Å"preferred client†. Strike balance between tapping into local knowledge of markets and disseminating global practice. Communication efforts are directed effectively and with maximum return on investment. To work with the limited number of agencies so that they really know the business. Encourage its agencies and employees by making changes in remuneration. Nescafe has even in the past resorted to low-key market penetration strategies. Nescafe can take advantage of the positive press on the health benefits of tea to boost the sales of its tea product line. The company can use recent studies on the health benefits of tea as the basis of its press releases and advertising campaigns. TARGET MARKET We want to touch the target group n a progressive way. At the beginning, it is important to touch the consumers of black tea, fruit tea and health tea. In second time, we should attract consumers of the main competitor â€Å"LIPTON TEA†. The next step will be to touch the tea drinkers in general and at the end, the consumers of coffee. We can argue for the coffee drinkers that the black tea is as strong as the coffee and good for the health. DISTRIBUTION CHANNEL Mc cann and publicis mojo is the lead global agency of Nescafe. Products are sold throughout India and also are exported to Russia, Hungary and several other countries. Visibility and availability of product had been supported by smaller stock keeping units. MARKETING MIX Product Nestea will be a high quality product offered as specially blended Black tea as well as Fruit and Herbs. Contents of the Nestea black are: 40 bags, 80 bags, 150 bags, 250 bags (Family pack) The amount of bag refers to different target groups. 40 bags for singles, 80 bags for couples, 150 bags and 250 bags are Family packs. Contents of Nestea fruit and Nestea herbal is 25 bags. This is standard size, very common on the tea market (comparison with competitors) The different tastes offered will be: Peppermint, citrus fruit, mango and peach, apple, vanilla. Place Tea is imported from India because the company is able to get high quality for a reasonable price. The final product will be distributed to Retailers such as supermarkets and small shops so the end consumer has easy access to it. Place in supermarkets: The fruit and herbal tea boxes should be placed on the top of the shelves in the supermarkets. Beneath them on the middle and lower levels the black tea should be placed according to the content of tea bags. 40 bags should be placed higher than the ones containing more bags. Price Nestea price would be Content Price Nestea Black 40 bags Rs. 40.99 Nestea Black 80 bags Rs. 78.99 Nestea Black 150 bags Rs. 145.99 Nestea Black 250 bags Rs. 235.99 Peppermint 25 bags Rs. 49.99 Mango Peach 25 bags Rs. 39.99 Apple 25 bags Rs. 40.99 Vanilla 25 bags Rs. 41.99 Promotion The promotion is the most important point to launch our products because we want to be able to compete with our biggest competitor â€Å"Lipton Tea†. We are going to set up original events in order to attract new customers and consumers of the other tea brands. Promotion in supermarkets: We want to set up a stand in the supermarket in order to make tasting to the supermarkets clients. The stand should represent the brand with the colour of the company During the launch of our product, all the customers at the supermarket will receive a sample of â€Å"Nestea† for free at the cashers including a voucher which explains the game to win a trip to London. Promotional offers during the year: If a client buys a box of 150 bags, he will get a free cup or a spoon. If he buys a box of 250 bags, he will get a free box of vanilla tea. The top companies markets spend 40% of their budget on TV. FINANCIAL PROJECTIONS Updated General Fund Projection for FY 2008 There are no specific fiscal actions that result from acceptance of this report. The Fiscal impact of the FY 2008 budget projection will be considered as part of the FY 2008 budget process. As a result of updating the FY 2008 current level of services, the estimated deficit faced by the County is between $201.6 million and $238 million, which is, at the high range, $36.4 million above our August estimate. Between now and June, the projected County deficit could also change as a result of new information, and State and/or Federal budget impacts. As part of the County Executives FY 2008 Recommended Budget, the Administration is likely to propose modified solutions to address the deficit above the original $201.6 million CATEGORY FALL 2006 PROJECTIONS FEBRUARY 2007 PROJECTIONS VARIANCE % Salaries and Benefits $1,079,122,529 $1,104,392,402 $25,269,873 2.3% Services and Supplies $980,299,690 $985,905,536 $5,605,846 0.6% Other Charges $14,975,229 $13,419,939 ($1,555,290) (10.4%) Operating/Equity Transfers $312,285,789 $319,670,115 $7,384,326 2.4% Expenditure Transfers/Reimbursements ($191,727,494) ($203,671,731) ($11,944,237) 6.2% Total Net Expenditures $2,194,955,743 $2,219,716,262 $24,760,519 1.1% Total Revenues $1,993,330,215 $1,992,472,684 ($857,531) 0% Net Cost ($201,625,528) ($232,176,299) ($25,618,050) 12.7% CONCLUSION This new product will definitely help Nescafe to grow better and better. The only thing that the strategies used should be according to the plan. As according to the plan first preference should be the customers taste. The competitors are strong so in the starting we should be on our toes. Ultimately the goal s to make it big and really big. This Nestea will definitely make a change to NESCAFE. BIBLIOGRAPHY www.foodeditorials.com www.nescafe.com www.nestle.in/nestle_india_landing.aspx www.ciims.net/2008/09/nescafe_atack_green ­_tea_market.html www.allbusiness.com/marketingmarketing/236907-1.html en.wikipedia.org/wiki/nestle