Beware The Pitfalls Of Global Marketing Case Study Help

Case Study Solution And Analysis

Home >> Darden >> Beware The Pitfalls Of Global Marketing >>

Beware The Pitfalls Of Global Marketing Case Study Help

Beware The Pitfalls Of Global Marketing is presently one of the biggest food chains worldwide. It was founded by Darden in 1866, a German Pharmacist who first introduced "FarineLactee"; a mix of flour and milk to feed infants and reduce mortality rate. At the exact same time, the Page siblings from Switzerland also found The Anglo-Swiss Condensed Milk Business. The two became rivals in the beginning but later on combined in 1905, resulting in the birth of Beware The Pitfalls Of Global Marketing.
Business is now a multinational company. Unlike other multinational companies, it has senior executives from various nations and tries to make decisions considering the entire world. Beware The Pitfalls Of Global Marketing presently has more than 500 factories around the world and a network spread throughout 86 countries.


The purpose of Business Corporation is to enhance the quality of life of people by playing its part and supplying healthy food. While making sure that the business is prospering in the long run, that's how it plays its part for a better and healthy future


Beware The Pitfalls Of Global Marketing's vision is to supply its consumers with food that is healthy, high in quality and safe to consume. Business visualizes to develop a trained workforce which would help the business to grow


Beware The Pitfalls Of Global Marketing's mission is that as currently, it is the leading business in the food market, it thinks in 'Good Food, Great Life". Its objective is to provide its customers with a variety of choices that are healthy and best in taste. It is concentrated on offering the very best food to its consumers throughout the day and night.


Beware The Pitfalls Of Global Marketing has a large range of products that it provides to its customers. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has actually laid down its goals and objectives. These objectives and goals are noted below.
• One objective of the business is to reach absolutely no landfill status. It is working toward absolutely no waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Beware The Pitfalls Of Global Marketing is to lose minimum food throughout production. Usually, the food produced is lost even prior to it reaches the clients.
• Another thing that Business is working on is to enhance its packaging in such a way that it would help it to reduce those complications and would likewise guarantee the delivery of high quality of its products to its clients.
• Meet global standards of the environment.
• Develop a relationship based upon trust with its customers, company partners, staff members, and federal government.

Critical Issues

Recently, Business Business is focusing more towards the technique of NHW and investing more of its profits on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW method. The target of the company is not achieved as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Display H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business method is based on the principle of Nutritious, Health and Wellness (NHW). This method deals with the idea to bringing modification in the client preferences about food and making the food stuff much healthier concerning about the health problems.
The vision of this method is based upon the secret technique i.e. 60/40+ which merely means that the items will have a rating of 60% on the basis of taste and 40% is based upon its nutritional value. The products will be produced with extra dietary value in contrast to all other products in market acquiring it a plus on its dietary material.
This technique was adopted to bring more yummy plus healthy foods and beverages in market than ever. In competitors with other business, with an intention of maintaining its trust over consumers as Business Business has actually gained more trusted by customers.

Quantitative Analysis.

R&D Spending as a percentage of sales are declining with increasing actual amount of spending shows that the sales are increasing at a greater rate than its R&D spending, and enable the business to more spend on R&D.
Net Earnings Margin is increasing while R&D as a portion of sales is declining. This sign likewise reveals a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing financial obligation ratio present a threat of default of Business to its investors and might lead a declining share costs. Therefore, in regards to increasing financial obligation ratio, the company ought to not spend much on R&D and must pay its present financial obligations to reduce the risk for financiers.
The increasing risk of investors with increasing financial obligation ratio and decreasing share prices can be observed by huge decline of EPS of Beware The Pitfalls Of Global Marketing stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow understanding structure of customers. This sluggish development likewise impede business to more invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Charts given up the Exhibitions D and E.

TWOS Analysis

TWOS analysis can be used to derive numerous techniques based upon the SWOT Analysis given above. A brief summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business must introduce more innovative products by large quantity of R&D Costs and mergers and acquisitions. It could increase the market share of Business and increase the earnings margins for the company. It could likewise offer Business a long term competitive benefit over its competitors.
The global growth of Business must be focused on market recording of developing countries by expansion, drawing in more clients through customer's loyalty. As establishing nations are more populated than industrialized countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisBeware The Pitfalls Of Global Marketing ought to do mindful acquisition and merger of organizations, as it could affect the consumer's and society's perceptions about Business. It must obtain and combine with those companies which have a market credibility of healthy and nutritious companies. It would improve the perceptions of customers about Business.
Business should not only spend its R&D on development, rather than it ought to also focus on the R&D costs over evaluation of expense of numerous healthy products. This would increase cost efficiency of its products, which will result in increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not only establishing but also to developed nations. It needs to expand its circle to different nations like Unilever which runs in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Beware The Pitfalls Of Global Marketing needs to sensibly manage its acquisitions to prevent the risk of misunderstanding from the customers about Business. It needs to acquire and combine with those countries having a goodwill of being a healthy business in the market. This would not only enhance the perception of customers about Business however would likewise increase the sales, earnings margins and market share of Business. It would likewise allow the company to utilize its possible resources effectively on its other operations instead of acquisitions of those companies slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based on four elements; age, gender, income and occupation. For instance, Business produces several items related to infants i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary products. Beware The Pitfalls Of Global Marketing items are quite budget friendly by practically all levels, however its major targeted customers, in terms of income level are middle and upper middle level customers.

Geographical Segmentation

Geographical division of Business is composed of its presence in almost 86 countries. Its geographical segmentation is based upon 2 primary factors i.e. average income level of the consumer along with the environment of the region. For example, Singapore Business Business's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the character and life style of the consumer. For example, Business 3 in 1 Coffee target those clients whose life style is rather busy and don't have much time.

Behavioral Segmentation

Beware The Pitfalls Of Global Marketing behavioral division is based upon the mindset understanding and awareness of the consumer. Its highly healthy items target those consumers who have a health conscious attitude towards their usages.

Beware The Pitfalls Of Global Marketing Alternatives

In order to sustain the brand in the market and keep the customer undamaged with the brand name, there are 2 alternatives:
Alternative: 1
The Business needs to invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall possessions of the company, increasing the wealth of the business. However, costs on R&D would be sunk cost.
2. The company can resell the gotten systems in the market, if it stops working to execute its strategy. However, amount invest in the R&D might not be restored, and it will be thought about completely sunk cost, if it do not give prospective results.
3. Investing in R&D supply sluggish growth in sales, as it takes very long time to introduce an item. Acquisitions provide fast results, as it provide the business currently established product, which can be marketed quickly after the acquisition.
1. Acquisition of company's which do not fit with the company's worths like Kraftz foods can lead the business to deal with misconception of consumers about Business core worths of healthy and nutritious items.
2 Large spending on acquisitions than R&D would send out a signal of company's inadequacy of developing innovative products, and would results in consumer's frustration also.
3. Big acquisitions than R&D would extend the line of product of the company by the items which are currently present in the market, making company unable to introduce new ingenious items.
Alternative: 2.
The Company must spend more on its R&D instead of acquisitions.
1. It would make it possible for the business to produce more ingenious products.
2. It would provide the company a strong competitive position in the market.
3. It would allow the business to increase its targeted clients by introducing those products which can be offered to an entirely brand-new market section.
4. Innovative products will offer long term benefits and high market share in long run.
1. It would reduce the earnings margins of the business.
2. In case of failure, the whole costs on R&D would be considered as sunk cost, and would impact the business at big. The threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which might provide an unfavorable signal to the financiers, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with significant costs on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to present new ingenious products with less danger of converting the spending on R&D into sunk cost.
2. It would supply a favorable signal to the investors, as the general properties of the company would increase with its substantial R&D spending.
3. It would not impact the profit margins of the company at a big rate as compare to alternative 2.
4. It would supply the business a strong long term market position in terms of the business's general wealth in addition to in regards to ingenious products.
1. Danger of conversion of R&D spending into sunk cost, higher than option 1 lesser than alternative 2.
2. Threat of misunderstanding about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Intro of less variety of ingenious items than alternative 2 and high variety of ingenious products than alternative 1.

Beware The Pitfalls Of Global Marketing Conclusion

RecommendationsIt has actually institutionalised its strategies and culture to align itself with the market modifications and customer habits, which has actually ultimately enabled it to sustain its market share. Business has actually developed substantial market share and brand name identity in the metropolitan markets, it is advised that the company should focus on the rural locations in terms of developing brand name commitment, awareness, and equity, such can be done by creating a specific brand name allocation method through trade marketing tactics, that draw clear distinction between Beware The Pitfalls Of Global Marketing products and other rival items.

Beware The Pitfalls Of Global Marketing Exhibits

PESTEL Analysis
Governmental assistance

Changing standards of international food.
Enhanced market share.
Altering perception in the direction of healthier products
Improvements in R&D as well as QA departments.

Introduction of E-marketing.
No such influence as it is favourable.
Worries over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest since 3000
Greatest after Business with less growth than Organisation 9th Lowest
R&D Spending Highest possible because 2009 Greatest after Company 8th Most affordable
Net Profit Margin Greatest because 2006 with quick development from 2004 to 2014 As a result of sale of Alcon in 2013. Almost equal to Kraft Foods Consolidation Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition and health element Highest number of brand names with lasting practices Biggest confectionary and processed foods brand name worldwide Largest dairy products as well as mineral water brand on the planet
Segmentation Center and upper middle level customers worldwide Individual consumers together with household team Any age and also Income Customer Groups Middle and also upper center degree customers worldwide
Number of Brands 7th 4th 7th 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 43413 136264 176436 979535 577645
Net Profit Margin 7.23% 9.41% 69.62% 9.15% 57.75%
EPS (Earning Per Share) 33.18 9.72 9.51 8.43 24.52
Total Asset 869271 454537 166637 635637 79539
Total Debt 28338 41472 52955 26684 37248
Debt Ratio 34% 81% 46% 18% 42%
R&D Spending 3885 3284 2283 9388 3223
R&D Spending as % of Sales 7.43% 8.99% 2.69% 5.64% 6.92%

Beware The Pitfalls Of Global Marketing Executive Summary Beware The Pitfalls Of Global Marketing Swot Analysis Beware The Pitfalls Of Global Marketing Vrio Analysis Beware The Pitfalls Of Global Marketing Pestel Analysis
Beware The Pitfalls Of Global Marketing Porters Analysis Beware The Pitfalls Of Global Marketing Recommendations