Advertisement and Promotion in Business The WritePass Journal

Advertisement and Promotion in Business Abstract Advertisement and Promotion in Business ). With the ongoing increase in competition across all industries, companies that fail to advertise or promote their products and services risk losing their competitive edge regardless of how proper the other elements of the marketing mix are (Reynolds Lancaste, 2013). This paper covers different issues of advertisement and promotion. These include the marketing communications’ scope and below the line advertisement approaches that can be used to promote Pringles, one of their products. It also designs a plan for an integrated promotional strategy for Pringles. Task 1 – Scope of Marketing Communications 1. Explain the communication process that applies to advertising and promotion. Communication in advertisement and promotion aims to ensure that that the messages that businesses intend to pass to their consumers are effectively relayed (Shimp Andrews, 2013). There are different steps through which these messages undergo before arriving to their target audiences. In promotion and advertisement, the sender – in this case, the advertising company – encodes the message and relays it through a transmission device (Wharton, 2013). Encoding is the creative creation of cues that can either be verbal or non-verbal that will pass the intended message to customers in the most effective manner and also attract the highest possible attention among the target customers (Reynolds Lancaste, 2013). After the message has been encoded, ideal transmission devices or avenues are used to pass the message (Wharton, 2013). With the different customer segments being targeted by companies, it is important to select the most ideal avenue through which the advertisement can be passed (Pride, 2013). The message is then decoded by the receiver, where it will trigger different actions in response to the advertisement, which include making purchases of the advertised products or services (Reynolds Lancaste, 2013). Whereas companies expect the communication processes of advertisements to lack barriers, there are several that may limit the attainment of the intended advertisement objectives (Wharton, 2013). One of these is the presence of many other adverts by competing companies that may divide the attention of target consumers this is mainly referred to as clutter (Kaser, 2012). 2. Explain the organisation of the advertising and promotions industry. The advertising and promotions industry comprises of different entities. These include advertisers, advertising agencies, media organizations and external facilitators (Friedlein, 2014). The roles played by all these parties contribute towards the success of the industry. To ensure effectiveness of this industry, different countries have different approaches of managing these involved parties (Oguinn et al., 2011). In the United Kingdom and Europe, there are different bodies that are involved in the running of the industry. These include the European Association of Communications Agencies (EACA), and the Promotional Marketing Council (PMC) (Warc, 2014). EACA represents media agency associations and full-service advertising across Europe (EACA, 2014). It is based in Brussels, Belgium, and focuses on the promotion for responsible effective and honest advertisement. The organisation also promotes high levels of professionalism and fosters close cooperation among different advertisers, a gencies and media outlets in Europe. PMC, on the other hand, represents the sales promotion industry. Some of the parties represented include suppliers, clients and agencies across several countries in Europe (Warc, 2014). 3. Assess how promotion is regulated. Regulation involves the creation or certain rules and regulations to govern different activities in advertisement and promotion. In the United Kingdom, an advertising self-regulatory system for non-broadcast advertising was set up in UK in 1961. This step was taken to ensure that advertisements are responsible and achieve the purpose of making customers aware of products and their repurchase of the products. The UK regulates the promotion industry by using a combination of practice and legislation codes (Advertising Standards Authority, 2014). There are two regulatory committees that create, revise and monitor advertising codes. These are the Broadcast Committee of Advertising Practice (BCAP) and the Committee of Advertising Practice (CAP). The BCAP code creates broadcast advertising rules while CAP creates rules for non-broadcasting advertising, direct marketing and sales promotion (Farrell Gordon, 2012). These rules are enforced by the Advertising Standards Authority (ASA). With the changes that are always taking place in advertising, these rules are regularly revised to increase effectiveness (Kaser, 2012). However, keeping up with this pace is quite challenging because of the increase in advertisement avenues that has been made possible by technological advancements. As a result, increasing numbers of customers are falling prey to advertisers that advertise inexistent or poor quality products (Cho et al., 2014). 4. Examine current trends in advertising and promotion, including the impact of ICT. The current trends in advertising and promotion have majorly been influenced by the increase in the use of the internet and social networking among target customers, which has largely been as a result of ICT development (Friedlein, 2014). There are various internet related trends in product advertising and promotion. These trends include; social media, online display advertising and mobile advertising. Advertisements on the social media, such as Facebook and Twitter, are on the rise and are referred to as sponsored content (Seth Kapoor, 2014). Companies are taking advantage of the growing number of people using these avenues because in total, there are approximately 2 billion people signed up to different social media platforms (Tuten Solomon, 2012). Online display marketing is on the rise, and involves the advertisement of company websites on other websites that target consumers frequently use (Kaser, 2012). According to Persaud and Azhar (2012), an increase in the use of smartpho nes has also given rise to internet mobile advertising. This is where advertisers reach consumers personally through platforms, such as social media or sending links to company websites, in the form of text messages (Persaud Azhar, 2012). Whereas these developments provide a convenience of reaching a wide range of clients in a short time and on a smaller budget, there are also different associated demerits (Friedlein, 2014). One of these is the information risk that customers and companies may be prone to because of hacking (Cho et al., 2014). Social media has been regarded by some researchers as one of the fastest avenues through which information passes. Thus, any mistake by a company that may tarnish its reputation can be detrimental to its brand (Tuten Solomon, 2012). Task 3: Primary techniques of below-the-line technique of sales promotion 1. Explain primary techniques of below-the-line promotion and develop a BTL campaign for the brand, â€Å"Pringles† Below-the-line promotion Below-the line advertisement is a promotional strategy that tends to use other mediums apart from the typical ones like the internet, broadcast, print and billboards (Kaser, 2012). Many companies in the present-day business environment utilize this strategy alongside above-the-line and through-the-line advertisement (Reynolds Lancaste, 2013). One of the main attributes of this approach to advertisement is that it is less expensive. However, many companies combine this with above-the-line promotions so as to maintain a better market position, below-the-line promotion being just as complement (Gautam, 2013). Several below-the-line advertisement techniques are discussed hereunder. Field marketing or promotion: It is a process through which salespeople target customers on a one-on-one basis with the aim of promoting certain products and services (Stone Desmond, 2007). One of the advantages of this approach is that it provides customers with a close interaction with the product being promoted and the salesmen. However, this is time consuming and some customers may not be quite welcoming to the salespeople (Sigala, 2010). The use of coupons: this below the line approach to promotion involves handing coupons to prospective purchasers of commodities and offering incentives or discounts to attract customers, especially those who are price-sensitive (Wharton, 2013). Given that such approaches often offer product at reduced prices for a short duration, there is always a risk of reduced sales when the company resumes its original prices (Kumar Rajan, 2012). Loyalty programs: These are packages that offer rewards to the frequent buyers of commodities due to their loyalty to the retail outlets (Grewal et al., 2011). Such programs are common in the airline industry, where frequent flyers of a given airline numbering a specified number of flights are awarded for their loyalty in different ways, which may also include free flights. These programs are however more ideal for customers with easy accessibility to the company products (Kaser, 2012). A below-the-line campaign for Pringles Pringles is a potato and wheat manufactured snack owned and run under the Kellogg Company (Pringles, 2014). Below-the-line advertisement can be used to compliment the current promotional strategies used. One of the below-the-line approaches that can be used to market Pringles is the field promotion or field marketing approach. To effectively implement this promotional strategy, it is vital for the company to recruit salespeople that have the experience and skills needed to enable them convince people they have never met before to choose the Pringles over competing products in the market (Kaser, 2012). Small samples ought to be distributed for free or be sold at a lower price. Considering that the company mainly targets teenagers and students (Gillespie Hennessey, 2010), it is advisable for the company to use younger salespeople who are more aware of how to approach and appeal to teenagers. The most ideal places that promoters of this product can target are those with high population of teenagers, like schools, colleges or recreational parks. Though this marketing approach provides an excellent avenue for building a relationship between the target customers and the brand, companies have to invest heavily in training salespeople or promoters to enable them deal with customers of diverse tastes and backgroun ds (Sigala, 2010). 2. Evaluate other techniques that can also be used in this BTL campaign. Apart from the above below-the-line approach that can be used by Pringles, there are several other methods that may be adopted to boost sales and promote the product. They are examined below. Pringles can use the Intercept method, where trained sales personnel are positioned at retail outlets besides the shelves holding Pringles in retail stores and supermarkets (Stone Desmond, 2007). Their main role is to persuade incoming buyers into the stores to purchase Pringles by highlighting their advantages over other competing products. Whereas this approach can increase the sales for the company, it has been criticized for causing impulse buying among customers (Pride, 2013). Sponsorship is also an ideal below the line promotional strategy that can be used by Pringles. This is whereby the company supports events and activities through provision of funds and other resources that are valuable to the success of the event (Woisetschlger Michaelis, 2012). For Pringles, this strategy can be implemented by sponsoring sports for schools and youth concerts. Awareness of the company or products can be increased by ensuring by printing T-Shirts, caps or any other apparel to be worn by those attending the event. Even with this convenience that the strategy offers to customers, it can be quite cost intensive for the company depending on the size or magnitude of the event being sponsored (Lee et al., 2012). This may have an adverse impact on the company’s return on investment. Task 4: Plan Integrated Promotional Strategies 1. Follow an appropriate process for the formulation of a budget for this integrated promotional strategy An integrated promotional strategy refers to an approach to promotion where a company uses different avenues to and tools to increase the awareness of products (Kaser, 2012). This section presents a plan for a promotional strategy that can be used to market Pringles. Even with the current success that it enjoys across the markets that it operates (Gillespie Hennessey, 2010), there is still a need for the company to penetrate more in the market and further increase its market share. To implement a successful promotional strategy, it is vital for the company to identify the resources or activities that will be involved. After they are identified, the appropriate budgetary allocation will be done to facilitate the strategy (Reynolds Lancaste, 2013). The avenues that will be used in this promotion strategy are TV commercials, billboards and online advertisement through social media outlets. The budget is summarized as below. Promotional Techniques Budget allocation TV commercials  £1 million Billboards  £100,000 Social media promotion YouTube video advertisements  £50,000 Facebook  £50,000 Twitter  £50,000 Total  £1.25 million    23: Carry out the development of a promotional plan for the Pringles and plan the integration of promotional techniques into the promotional strategy for Pringles The table above represents the promotional techniques that will be used in the promotion of Pringles. TV commercials will be used by airing advertisements of the product on channels that air programs that are mostly viewed by the company’s target customers, who are teenagers and the youth (Saxena, 2010). The most ideal channels on which to air these advertisements are music or sports channels. Billboards will be effective if they are located in areas that are densely populated and are located close to outlets of the products. With an increasing number of people who have signed up on Facebook and Twitter social networks, advertising products on these sites also increases their visibility among the target audience (Tuten Solomon, 2012). It also enables the company to actively engage with the customers that it is targeting. Thus, it will be imperative for Pringles to consider utilizing these avenues for promotion. 4. Appropriate techniques for measuring campaign effectiveness There are different approaches that can be used by companies in measuring the effectiveness of their promotional campaigns. One of these is the amount of feedback from customers. This is usually mainly in form of inquiries through different avenues about the product being marketed (Pride, 2013). When inquiries are high, it means that the advertisement strategy was effective, and vice versa. Another approach that can be used is the estimation of sales prior to and after the launch of the promotional campaign or the return on investment (ROI) (Kaser, 2012). Successful promotional campaigns ought to result in an increase in sales levels of the company and create revenues that surpass the investment that was put in the promotional activity. For social media advertisements, tools such as SentiStrength can be used to assess the reception of consumers to the advertisements. SentiStrenth is a sentiment measuring tool that evaluates the level of positivity or negativity of short texts that ar e mainly used in commenting on social media sites (SentiStrength, 2014). Conclusion Advertisement and promotion are vital components of the marketing mix. Some of the roles that they play include increasing of awareness among target customers about a company’s products and attracting new customers. This paper has addressed different issues that relate to this component of marketing. Under the scope of marketing communications, the paper has explained how the communication works process in promotion. It has also discussed how the organisation and regulation of the advertisement industry in the United Kingdom. The concept of below-the-line advertisement and an integrated promotional strategy that can be used to market Pringles have also been presented. For companies that intend to maintain their competitiveness in the market and attract a wide range of customers, it s vital for them to ensure that their promotional strategies are relevant to their target audiences. Whereas this paper has provided an in-depth understanding on the concepts of advertising and prom otion, in future, primary research can be incorporated, with members of the marketing department and a section of its target customers as respondents. References Advertising Standards Authority, 2014. About Regulation. [Online] Available at: asa.org.uk/About-ASA/About-regulation.aspx [Accessed May 2014]. Cho, S., Huh, J. Faber, R.J., 2014. The influence of sender trust and advertiser trust on multistage effects of viral advertising. Journal of Advertising, 43(1), pp.100-11. EACA, 2014. About Us. [Online] Available at: eaca.eu/ [Accessed 31 May 2014]. Farrell, T. Gordon, R., 2012. Critical social marketing: investigating alcohol marketing in the developing world. Journal of Social Marketing, 2(2), pp.138-56. Friedlein, A., 2014. Six trends in advertising you need to know for 2014. [Online] Available at: marketingweek.co.uk/opinion/ashley-friedlein/six-trends-in-advertising-you-need-to-know-for-2014/4009135.article [Accessed May 2014]. Gautam, A., 2013. A study on (below the line) promotion strategies of telecom industry in western (Up) circle (India) with special reference to Reliance Communication. European Journal of Business and Management, 5(22), pp.74-79. Gillespie, K. Hennessey, ‎.D., 2010. Global Marketing. Mason: Cengage Learning. Grewal, D. et al., 2011. Innovations in retail pricing and promotions. Journal of Retailing, 87, pp.43-52. Kaser, K., 2012. Advertising and Sales Promotion. Mason, USA: Cengage Learning. Kumar, V. Rajan, B., 2012. Social coupons as a marketing strategy: a multifaceted perspective. Journal of the Academy of Marketing Science, 40(1), pp.120-36. Lee, D.-C., Hung, L.-M. Chen, M.-L., 2012. Empirical Study on the Influence among Corporate Sponsorship, Organizational Commitment, Organizational Cohesiveness and Turnover Intention. Journal of Management and Sustainability, 2(2), pp. 43-53 Mishra, P., 2009. Sales Management: Keys to Effective Sales. New Delhi: Global India Publications. Oguinn, T., Allen, C. Semenik, R., 2011. Advertising and integrated brand promotion. Mason: Cengage Learning. Percy, L. Rosenbaum-Elliott, R., 2012. Strategic Advertising Management. Oxford: Oxford University press. Persaud, A. Azhar, I., 2012. Innovative mobile marketing via smartphones: are consumers ready? Marketing Intelligence Planning, 30(4), pp.418-43. Pride, W.M., 2013. Marketing 2014, 17th ed. Mason: Cengage Learning. Pringles, 2014. Products. [Online] Available at: pringles.co.uk/products [Accessed 31 May 2014]. Reynolds, P. Lancaste, ‎G., 2013. Marketing. New Jersey: Routledge. Saxena, R., 2010. Marketing Management 4E. London: McGraw-Hill Education. SentiStrength, 2014. Sentiment Analysis. [Online] Available at: http://sentistrength.wlv.ac.uk/results.php?text=Luois+Vuitton+have+nice+clothes+but+i+hate+their+pricessubmit=Detect+Sentiment [Accessed 19 May 2014]. Seth, S. Kapoor, K., 2014. Fostering Creativity Innovation In Marketing Communication through Social Media. The International Journal Of Business Management, 2(1), pp.19-24. Shimp, T. Andrews, J.C., 2013. Advertising promotion and other aspects of integrated marketing communications. Mason: Cengage Learning. Sigala, M., 2010. The Handbook of Field Marketing: A Comprehensive Guide to Understanding and Outsourcing Face-to-face Direct Marketing. Journal of Product Brand Management, 19(1), pp.67-68. Stone, M.A. Desmond,J ‎., 2007. Fundamentals of Marketing. London: Routledge. Tuten, T.L. Solomon, M.R., 2012. Social Media Marketing. New York: Prentice Hall. Warc, 2014. Promotional Marketing Council. [Online] Available at: warc.com/ContentandPartners/PromotionalMarketingCouncil.info [Accessed May 2014]. Wharton, C., 2013. Advertising as Culture. Bristol: Intellect. Woisetschlger, D.M. Michaelis, M., 2012. Sponsorship congruence and brand image: A pre-post event analysis. European Journal of Marketing, 46(3/4), pp.509-23.

Moda Operandi A New Style of Fashion Retail Case Study

Moda Operandi A New Style of Fashion Retail - Case Study Example The essay "Moda Operandi A New Style of Fashion Retail" discovers New Style of Fashion Retail. Moda Operandi dealt with demand and tastes’ uncertainty in fashion. It also addressed the conditions (commercial and aesthetic which caused inefficiency of the system and messed about the most creative pieces of the designers. This organization allowed direct access to runway pieces and facilitated the purchase of great designs that buyers kept away from due to lack of mainstream appeal. The pre-order system allowed buyers to receive their products of choice despite their location or size of clothing. The system also gave instant feedback to designers on runway styles, thus easy prediction of demand patterns. Magnusdottir and Santo Domingo had their responsibilities split by expertise. Magnussdottir was the Chief Executive Officer (CEO) and dealt with strategic planning and daily operations. Santo Domingo was the Creative Director, managed the reach of the brand and was in charge of the Moda Operandi magazine whose aim was to provide online editorial content. The founders realized that the website was essential for the success of the firm. Therefore, they hired Matt Pavelle, who was an expert in search engine marketing and e-commerce, as CTO. Other major positions of management were covered up by persons with experience and skills complementary to that of the founders. Magnusdittor and Santo Domingo positioned their firm towards the hitting end of the market. Initially, they only associated with prestigious.

Economic Policy Essay Example | Topics and Well Written Essays - 1500 words

Economic Policy - Essay Example They can influence in making decisions and in the monopoly of the authorized force. The government illustrates the fact that people are living in the community and personal autonomy must be constrained. Governments are created to increase the survival potentials of the people and they are directly involved in manipulating and managing all the regional economies. The government itself can make reforms on currencies and they ensure that the values of money will undermined by prohibiting counterfeiting. The government regulates most of the aspects in the economy and they stabilized it for the benefit of the people. The government has a crucial role in managing the public goods and the environment. They are the institutions that resolve problems in the local level and global scales. The economic market has suitable mechanism and governmental intervention and regulation that sustain the management. Normally, the government manipulates the economy of the nations wherein the members of the government shape the economic policies. There are social programs such as Social security and Medicare. The flexibility of the government resulted to unusually dynamic economy and it produced growing affluence, technological innovation and growing trade with other nations Services are relative to traditional manufacturing, some Economic Policy P 2 industries give more specialized production and it gives emphasis on product diversity and customization Large companies have merged and split up and reorganized in numerous ways, and increasingly the government and business leaders emphasize the importance of high skilled and flexible work force in ensuring the future economic success of the country. Territorial competition involves the formation of policies in promoting local economic development in competing with other territories. It involves competing for mobile investment and it gives consideration in promoting the territory as a competitive place in conducting business. It includes improvement of the environment for all its existing local businesses and they are directed to foster formation of new firms than attracting inward investment. It involves leading agency formation that coordinates actions and efforts in developing a strategic analysis of the territory. This applies to the level of city regions and it is a principle o f distinguishing the traditional top-down regional policy by the local origins and the fact as locally determined goals. This gives consideration with the issues on regional spatial equity and the efficiency of local economy. Incentives involved in territorial competition and it works against wider issues on spatial equity. Territorial competition can be inevitable and beneficial; it is beneficial to local inhabitants, society, and economy. Unrelieved malign influence stemming from benefiting the interests of small or group of property owners leads an implicit rejection of economic growth as goal for the policy. The government breaks up and regulates companies that they have so much power wherein they could defy the market forces. Government normally addresses matters the private economy overlooks. Government nurture new industries and they even protect the companies from competition. Economic Policy P 3 It shows that there are implications in the policy in national and super national government, in

Hotel Security Essay Example for Free

Hotel Security Essay Hotel Security Matthew Acevedo July 10, 2011 HTT/200 Hotel Security Security came forcefully to the attention of hotel operators in 1976 when a well-known singer, Connie Francis, was raped at knifepoint in a Long Island motel.(online reading, pg.309) Good security is what makes are breaks a good hotel. To insure that you have great security you have to address where its needed the most, where it might be an issue and what are the biggest threats to your guest. According to many different websites identity theft is becoming a major with hackers breaching computers in major hotel chains and gaining access to thousands upon thousands of guests personal information including; home addresses, credit card numbers and personal phone numbers. (Bates, 2008) To help reduce the risk of hackers it would be smart to make sure your database is secured through a well-known and respected company that deals with internet hackers. Though its impossible to fully stop hacking you can make sure you minimize the risk significantly with the right resources. A big issue with security would be fraud and theft. According to the U.S. Department of Justice Statistics, identity theft is now passing up drug trafficking as the number one crime in the nation. (Itrc, 2006) To solve some of these solution the easy steps would be to makes sure to check every guests ID and credit card against each other and have a fake ID decoder behind every desk to insure that no one gets away with using someone elses credit card. Theft is also a big concern with guests that stay in hotels. Many hotels have an open-door policy that lets maids prop open doors for hours on end while they clean that floor. That leaves room wide open for anyone to just walk into a room and take whatever they want or rack up huge bills on movie rental or minibar items. According to a study done in 2003 many hotels have not changes there policies after the attacks of 9/11. Many hotels that were rated higher with security had already established good security and didnt need to make changes. (Myers, 2003) There is no base-line for hotel security so its hard to say if the standard went up after the September 11 attacks of 2001. Conclusion Most of the security issue seems to be that of theft, either of personal items or identity. To help solve the ongoing issue there are dozens of companies working to shut down the cyber-attacks of hotel databases around the world. Until then it is the job of the hotel to take every precaution necessary to insure that guest feel as safe and comfortable as possible while staying in their establishment. References

Athens and Sparta :: essays research papers fc

During the period of Greek history from the last years of the Persian Wars till the beginning of the First Peloponnesian War, the primacy of Sparta declined whileAthens was gaining increased influence in Greece. The Athenian, Thucydides (460-400 BC), one among few contemporary historians, left behind the most creditable records about this period. Although he did not give enough documentation for many events he described, his Histories remained the main resource of the facts from that time. In consideration of the fact that he was an Athenian and a participant of the Athenian army, future historians could not entirely count upon his writing. In the 480-479 BC there was great anxiety about the strength and magnitude of the Persian threat. Although the Greeks had managed to force Persians retreat from the Greek mainland, the danger of reconquest by the Persians was still present. In the battle of Plataea (479 BC), the Greeks, under the Spartan regent and general Pausanians, obliterated the Persian army. The Greeks also won a naval victory at Mycale. Although the war drugged on for many years, these two victories marked the end of the Persian threat to Europe and the beginning of the period of Greek greatness. The idea of panhellenism - the awareness of Greek unity- appeared as a reaction to the fear of the Persian invasion. This is how Persia helped the Greece to recognise their identity, which gave significance to the year 479 BC to be marked as the beginning of the Classical Greek period. At the other side, the year 479 BC does not represent a vital turning-point in politics. Sparta’s control over her allies was still unbroken. After the Greeks’ triumph on Plataea, when the fear of the Persian invasion decreased, the idea of the united Greeks started diminishing. Phthonos (envy) was what characterised the relationship between Sparta and Athens, and between many other city-states after the Persian Wars. Their rivalry was constant. The most important direct result of the wars was the establishment of Athens as dominant Greek naval power. This gave Athens the opportunity to create, in the years to come, an extensive empire over the newly won territories which had no parallel in earlier Greek history. A new political order emerged among the Greek states centred on the two great powers of Athens and Sparta that was to have a profound effect on later Greek history.

The Ben and Jerry’s Ice Cream in Russia

Russia has a known reputation in the ice-cream industry. They are known for their flavorful ice creams that are of a wide flavor varieties. The Ben and Jerry’s Homemade, Inc. founded in Burlington, Vermont decided to have a franchise in Russia, which longs for modernization of its market economy. Since ice-cream is considered as a commodity, they thought of using it as an entry point to strengthen their economic growth. The franchise was named ‘Iceverks’ – Ice Cream of Vermont and Karelia.This was also thought of to bring together diplomacy in America and Russia although there were risks on doing such kind of business, even if Vermont and Karelia are sister cities. There was also an effort of change of political systems from strict social, the communist system, to the democratic political system. The management of Iceverks taught the necessary tools to the employees and managers to equip them for proper and good management strategies.Then suddenly the clima te inside the management changed, with the lessening of the effectiveness in their management because their local partners have become better in equipment to manage the joint venture. With this, they just decided to donate their equipment to the management and the equity to their local partners (Moss, 2000, p. 136). In 1997, Ben and Jerry’s has left Russia, with the Iceverks no longer using Ben and Jerry’s as their brand name.For me, although this happened, we cannot say that the venture was unsuccessful, because the Iceverks was able to maintain their standards for ice cream production and customer satisfaction services, the legacy that the Ben and Jerry’s left for Russian and even other foreign customers. The Ben and Jerry’s intention was not really on the profit but on the development, because instead of withdrawing all the equipment in the Iceverks because they are leaving, they even donated it to them.The corruption in the Mafia also brought about th eir withdrawal of management because of the matter of philosophy. The Ben and Jerry’s did not want to give consent to the bribery or corruption there was just to have protection from the Mafia. The American companies were required to pay 30% more of their profit just to acquire the said protection. Again, the economic shift was hard to attain that time.The mind set of the Russian managers was more on the capitalist ideology, which hinders them from being immediately penetrated by the training they received from the American managers, which the Ben and Jerry’s have given much effort on. Since Ben Cohen, the founder of the Ben and Jerry’s, is more of the ideal businessman, he was more of a diplomatic and socially responsible person. He did not care much of the money involved in the business. But then, there was an observed loss of jobs because the company has enormous money loss that could not support the work force any longer.As mentioned above, the Russian partn ers, who are in profit maximization, decided to split up with the Ben and Jerry’s, which made B&J just leave and leave their equipment to them. Leaving the Iceverks was somehow a much better decision than staying, because eventually the political system will eat them with their principles. In fact, they have succeeded in other countries like Japan, France and the UK, applying the same business strategies. It was a good decision to leave also because of the very unstable economy, with lots of financial risks, etc.that have affected much of their transactions, from simple packing to large machineries and refrigerators, etc. The big cultural differences also contributed to their decision, because they do not have the total control and regulation of the political and philosophical missions and visions of the company, since it is a joint venture. Reference Moss, L. S. (2000). Bankruptcy Reform in Russia: The Case for Creditor Rights in Russia. Review of Russian Economics, 13, 121- 146.

History and structure of PepsiCo - Free Essay Example

Sample details Pages: 6 Words: 1743 Downloads: 7 Date added: 2017/06/26 Category Marketing Essay Type Narrative essay Did you like this example? Pepsico is founded by Donald M Kendall. He was the chief executive officer of PepsiCo and Herman w lay chairman and chief executive officer of Frito-lay through the merger of the two companies. Pepsicola was created in the 1890 by Caleb Bradhan. Don’t waste time! Our writers will create an original "History and structure of PepsiCo" essay for you Create order Firto-lay was formed by the merger of Frito company in 1961. Herman is chairman of the board of the director of this Donald M Kendall is president and CEO. The new company report sales of 510 million dollar and has 19000 employees. Major product of the company. Pepsi-colaDiet Pepsi and mountain dew. Mountain dew launch its first campaign yahoo mountain dew. Doritos brand tortilla chips are introduced . Pepsi introduced the industry`s first two liter bottle. Pepsi is the first company to respond to consumer preference with light weight, recyclable plastic bottles. Pepsico acquires pizza hut was founded in 1958 by Dan and frank Carney. In 1980 PepsiCo food service international is formed to focus on overseas development of restaurant. Pepsico had 111000 employees in 1980. Pepsico launches PepsiCo food system, its restaurant supply company. In 1981 five me a dew success the slogan reach for the sun, reach for the mountain dew. In 1985 PepsiCo is now the largest company in the average industry. The company has revenue of more than 7.5 billion dollar more than 137000 employees. Pepsico available in nearly 150 countries and in 10 international markets. In 1990 PepsiCo sign the largest commercial trade agreement in history with the soviet union. Pepsico profit exceed 1 billion dollar for the first time. Key facts Global headquarter situated in New York. Annual revenue nearly 60 billion dollar , 52% beverages, 48% snacks and foods 61% in the U. S and Canada , 39% international. Chairman and CEO of this company Indra K Nooyi Now Pepsico has 285000 employee. Corporate structure Pepsico is comprised of four business units 1.Pepsico Americas beverages 2.Pepsico America foods. 3.Pepsico Europe . 4.Pepsico Asia, Middle east , Africa. Strategies for growth Pepsico has several key strategies for long term, sustainable growth . Building the company`s global macro snack portfolio. Responsibly and profitably growing the company`s beverage business. 3. Building the company`s nutrition business, in dairy , grains, fruit and vegetables. 4. Delivering on commitment. 5. Refreshing the organization to prosper in a changing environment. Some brands of PepsiCo Pepsico offer the world`s largest portfolio of billion- dollor food and beverages brands, including 19 different products line. Some brands name following; Pepsi Aquafina Lipton Mirinda Mountain dew Fritolay Tropicana Quaker Energy juice AMP Sabritus Walkers Gamesa Sierra mist 7up Pepsico in India Pepsico enter in Indian market in 1988 by joint venture with the Punjab government owned Punjab agro industrial corporation and Voltas India limited. They sold Lehar Pepsi until 1991, when the use of foreign brand was allowed PepsiCo bought out its partners and ended the joint venture in 1994. The headquarter of Pepsi in India is in Gurgaon and chairman of Pepsi Mr. Rajiv Bakshi. Presently it is operated in196 countries. Pepsico is the second largest food beverage company in the world. it manufactures market sales a variety of salty, sweet grain based snakes, carbonated non-carbonated PepsiCo seeds to achieve growth long turn value in it operational activities by creating competitive advantage through new product innovation. At PepsiCo were committed to achieving business and financial success while living a positive imprint n society- we delivering what we call a performance with purpose. Grow international revenue art two times real global GDP growth rate. Ensure high level of associate engagement and satisfaction as compare with other 500 companies. Launching its agro-business in India with special focus on exports of value-added processed foods, Pepsi Foods Ltd. (PepsiCo hereafter) entered India in 1989 by installing a Rs 22 crore tomatos processing planrt at jahura in Hoshiarpur district of Punjab. The company want to produce asptically packed pastes and pures for the international and national market. Before it goes ahead, the company recognized that the investment in agro-processing plants would not be viable unless the yields and quality of agricultural produce to be process were up to international standards. At that point of time, tomato had never been cultivated in Punjab for its solid content, with a focus on high yields and other desirable processing characteristics such as colour, viscosity and water binding properties. Furthermore, little effort had been made to create a database on the performance of various varieties an d hybrids, or to introduce modern farming practices. There were no logistically efficient procurement models for fruits and vegetables that could be built on by the company. These apart, there were simply not enough quantities of tomato available even if the grown varieties/hybrids were procured from the open market. The total Punjab tomato crop was 28000 tons, available over a 25-28 day period, while PepsiCo required at least 40000 tons of tomato to operate its factory, which had a gigantic capacity of 39 tons fresh fruit per hour. The company required this intake over a minimum 55-day time frame, and in 1989, the season in Punjab did not last beyond 28 days. Sceptics had expressed doubts over the feasibility of the Zahura tomato processing plant, and had said that it would remain a museum piece! There were formidable challenges before the company and nothing short of a horticultural revolution was required to solve the problem. There was no choice but to alter the tomato productio n and logistics situation in Punjab. This led to the birth of PepsiCos backward linkage with farmers of Punjab. PepsiCo follows the contract farming method described earlier, where the grower plants the companys crops on his land, and the company provides selected inputs like seeds/saplings, agricultural practices, and regular inspection of the crop and advisory services on crop management. The PepsiCo model of contract farming, measured in terms of new options for farmers, productivity increases, and the introduction of modern technology, has been an unparalleled success. The company focused on developing region- and desired produce-specific research, and extensive extension services. It was thus successful in bringing about a drastic change in the Punjab farmers production system towards its objective of ensuring supply of right produce at the right time in required quantities to its processing plant. Another important factor in PepsiCos success is the strategic partnership of the company with local bodies like the Punjab Agricultural University (PAU) and Punjab Agro Industries Corporation Ltd. (PAIC). Right from the beginning, PepsiCo knew that changing the mindset and winning the confidence of farmers would not be an easy task for outsiders. The companys unique partnership with PAU and PAIC fuelled its growth in Punjab. Pepsi believes that its snacks food has given a great fillip to potato cultivation in India. Each year it buys thousand of tons of potatoes from Punjab, Himachal Pradesh and from places as far away as Karnataka. Local potato varieties are good are good for table purpose but unfortunately not good for chip making because of their high moisture and sugar content , which causes browning in chips. So Pepsi imported six processing varieties, some of the best varieties of mini-tubes, from its own Pepsi facility in the united states. They gave them to the central potato research institute(CPRI) in Shimla for testing. There is a restriction o n the import of potato seeds because it is a vegetatively propagated crop; a disease will be passed on to the offspring. The CRPI certified and released five varieties for trials and cultivation. They are high on solids, their sugar levels are low and they are good on colour and uniform in size. Pepsi began multiplying the seed through tissue culture at their research farm in 1995. The phenomenon increase in yield has led to doubling of farmers income to about 30,000 per hector. Success in tomato processing is being repeated in chilies. More than 1700 farmer in about 5 Punjab district have planted Pepsi chillies .This is remarkable not due to the number of farmer who have planted chillies, but the fact that until Pepsi came in the picture ,there was almost no commercial chilli farming in Punjab as it was not economically viable. The average chilli yield was 5 tons per hectare. with the Pepsi technology and varieties the yield has short up four times about 20 tons per hectare. PepsiCos success is a result of the companys strategy to experiment with tomato and chilli varieties from around the world and develop from these their own varieties that work best of processing under local agro-conditions. In chillies, for example the company imported more than a hundred varieties from the united states, Korea , Holland, Indonesia, Taiwan and from India. They planted these on their research farm. Through tissue culture and other techniques, their scientist eventually evolved five or six varieties that have traits price the most for paste making-yields weight, size, solids, colour, pungency, resistance to disease- trials that are best under the states agro climatic conditions Pepsi produced several millions diseases free chilli plantlets at its farm and supplies them to the farmers with a buy-back guarantee at a predetermined price. Pepsico soon hope to get into ginger paste, garlic paste and the processing of several fruits like mangoes and guava to spread their agribusiness operation to other part of India. Pepsico operation in India are many and varied in addition to its many beverage business l,, the company has a modern rice plant in Sonipat Haryana, a joint venture project in the Tamil Nadu for manufacture of polyester chips and pre-forms used in making PET bottles and a canning factory in Maharashtra. In 2006 some problem had faced Pepsi due to phosphoric acid in this cold drink. This cold drink damage the stomach. They also desolve the calcium in the bones, making them frangile, and one another chemical added to cold drinks is ethelene glycol. And anti-freeze compound so that soft drink can consumed really chilled but it is known to cause of cancer. To coner the beta test of all the above additives, cold drinks contains an excessive amount of sugar 8 to 9 Tea spoon full per 300 ml bottle. It also create heart problem and of course acid and sugar also promote tooth decay. After that public mind had become Pepsi h ave made us mental slaves. They are destroying our health and destroying our environment of country .Their deprising drinking water and destroying their livelihood their brazenly breaking the law of the country yet the government is not taking action against them. Therefore Indian public think we must act and they join the growing country wide movement against pepsi.They took put a rally against pepsi on 16 february 2006 and many colleges and organization declare our environment is a pepsi free zone .