Menu

Marketing Planning At Just Us Cafes Case Study Analysis

Case Study Solution And Analysis


Home >> Harvard >> Marketing Planning At Just Us Cafes >>

Marketing Planning At Just Us Cafes Case Study Analysis

Marketing Planning At Just Us Cafes is currently among the greatest food cycle worldwide. It was established by Harvard in 1866, a German Pharmacist who first launched "FarineLactee"; a combination of flour and milk to feed infants and decrease death rate. At the very same time, the Page brothers from Switzerland also discovered The Anglo-Swiss Condensed Milk Business. The 2 ended up being rivals in the beginning however later merged in 1905, resulting in the birth of Marketing Planning At Just Us Cafes.
Business is now a multinational company. Unlike other multinational business, it has senior executives from different countries and attempts to make decisions thinking about the whole world. Marketing Planning At Just Us Cafes currently has more than 500 factories worldwide and a network spread across 86 nations.

Purpose

The function of Business Corporation is to boost the quality of life of people by playing its part and offering healthy food. While making sure that the company is succeeding in the long run, that's how it plays its part for a better and healthy future

Vision

Marketing Planning At Just Us Cafes's vision is to offer its consumers with food that is healthy, high in quality and safe to eat. Business visualizes to establish a trained workforce which would help the business to grow
.

Mission

Marketing Planning At Just Us Cafes's objective is that as currently, it is the leading company in the food market, it believes in 'Excellent Food, Great Life". Its mission is to supply its consumers with a range of choices that are healthy and best in taste. It is focused on offering the best food to its consumers throughout the day and night.

Products.

Business has a large range of products that it provides to its customers. Its products consist of food for infants, cereals, dairy items, snacks, chocolates, food for family pet and mineral water. It has around four hundred and fifty (450) factories around the world and around 328,000 employees. In 2011, Business was listed as the most rewarding company.

Goals and Objectives

• Remembering the vision and mission of the corporation, the business has laid down its objectives and objectives. These objectives and objectives are listed below.
• One goal of the business is to reach zero landfill status. (Business, aboutus, 2017).
• Another goal of Marketing Planning At Just Us Cafes is to waste minimum food during production. Most often, the food produced is lost even prior to it reaches the customers.
• Another thing that Business is working on is to improve its packaging in such a way that it would help it to minimize the above-mentioned complications and would likewise ensure the delivery of high quality of its items to its consumers.
• Meet international standards of the environment.
• Construct a relationship based on trust with its consumers, business partners, staff members, and government.

Critical Issues

Recently, Business Business is focusing more towards the strategy of NHW and investing more of its earnings on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW strategy. The target of the business is not accomplished as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Display H. There is a requirement to focus more on the sales then the development technology. Otherwise, it might lead to the decreased earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based upon the idea of Nutritious, Health and Wellness (NHW). This technique deals with the concept to bringing change in the consumer choices about food and making the food things much healthier worrying about the health concerns.
The vision of this technique is based upon the key approach i.e. 60/40+ which simply implies that the items will have a score of 60% on the basis of taste and 40% is based upon its nutritional value. The products will be produced with additional nutritional value in contrast to all other items in market acquiring it a plus on its nutritional material.
This strategy was adopted to bring more tasty plus healthy foods and beverages in market than ever. In competition with other companies, with an objective of keeping its trust over customers as Business Company has actually acquired more relied on by costumers.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing actual quantity of spending shows that the sales are increasing at a higher rate than its R&D spending, and allow the business to more invest in R&D.
Net Profit Margin is increasing while R&D as a portion of sales is decreasing. This indication also reveals a green light to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its spending on mergers, acquisitions and R&D advancement instead of payment of financial obligations. This increasing financial obligation ratio pose a threat of default of Business to its investors and could lead a decreasing share costs. For that reason, in regards to increasing financial obligation ratio, the firm must not invest much on R&D and ought to pay its present financial obligations to reduce the threat for investors.
The increasing danger of financiers with increasing debt ratio and declining share rates can be observed by huge decline of EPS of Marketing Planning At Just Us Cafes stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This sluggish development also impede company to additional 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 in the Exhibits D and E.

TWOS Analysis


2 analysis can be used to derive numerous methods based upon the SWOT Analysis offered above. A quick summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business should present more ingenious items by big quantity of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the earnings margins for the company. It might also supply Business a long term competitive benefit over its competitors.
The global growth of Business need to be concentrated on market capturing of developing nations by expansion, bring in more consumers through customer's loyalty. As establishing countries are more populated than developed nations, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisMarketing Planning At Just Us Cafes ought to do mindful acquisition and merger of companies, as it might impact the consumer's and society's understandings about Business. It ought to obtain and merge with those business which have a market track record of healthy and healthy companies. It would enhance the perceptions of customers about Business.
Business must not only spend its R&D on innovation, instead of it should likewise concentrate on the R&D spending over examination of expense of numerous nutritious items. This would increase expense efficiency of its products, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not just establishing however also to industrialized nations. It should widens its geographical expansion. This broad geographical growth towards establishing and established nations would decrease the threat of possible losses in times of instability in numerous nations. It should broaden its circle to numerous nations like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Marketing Planning At Just Us Cafes should carefully control its acquisitions to prevent the danger of misunderstanding from the customers about Business. It needs to obtain and combine with those nations having a goodwill of being a healthy company in the market. This would not just improve the perception of customers about Business but would likewise increase the sales, profit margins and market share of Business. It would likewise enable the company to use its prospective resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW strategy growth.

Segmentation Analysis

Demographic Segmentation

The market division of Business is based on 4 factors; age, gender, earnings and profession. Business produces numerous items related to children i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary products. Marketing Planning At Just Us Cafes products are rather budget friendly by nearly all levels, but its significant targeted customers, in regards to earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in nearly 86 countries. Its geographical division is based upon 2 primary factors i.e. typical income level of the consumer as well as the environment of the region. Singapore Business Business's division is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the character and life style of the consumer. For example, Business 3 in 1 Coffee target those customers whose life style is rather busy and do not have much time.

Behavioral Segmentation

Marketing Planning At Just Us Cafes behavioral segmentation is based upon the attitude understanding and awareness of the consumer. Its highly healthy products target those clients who have a health mindful attitude towards their intakes.

Marketing Planning At Just Us Cafes Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand, there are two alternatives:
Alternative: 1
The Company should invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall assets of the company, increasing the wealth of the company. However, spending on R&D would be sunk expense.
2. The business can resell the acquired units in the market, if it fails to execute its method. Nevertheless, amount spend on the R&D might not be restored, and it will be thought about totally sunk expense, if it do not offer possible outcomes.
3. Spending on R&D supply slow development in sales, as it takes very long time to present an item. Nevertheless, acquisitions offer fast outcomes, as it offer the company already developed product, which can be marketed right after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the company to deal with misunderstanding of customers about Business core values of healthy and nutritious items.
2 Large costs on acquisitions than R&D would send out a signal of company's inadequacy of establishing innovative items, and would results in consumer's dissatisfaction also.
3. Large acquisitions than R&D would extend the product line of the business by the products which are currently present in the market, making company unable to introduce brand-new ingenious products.
Alternative: 2.
The Company should invest more on its R&D rather than acquisitions.
Pros:
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 make it possible for the business to increase its targeted clients by introducing those products which can be provided to an entirely brand-new market sector.
4. Innovative items will offer long term benefits and high market share in long term.
Cons:
1. It would decrease the profit margins of the business.
2. In case of failure, the entire spending on R&D would be thought about as sunk expense, and would affect the company at large. The risk is not in the case of acquisitions.
3. It would not increase the wealth of business, which might supply a negative signal to the financiers, and might result I declining stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would permit the business to present new innovative products with less danger of transforming the spending on R&D into sunk expense.
2. It would offer a favorable signal to the investors, as the total properties of the company would increase with its significant R&D costs.
3. It would not impact the profit margins of the company at a large rate as compare to alternative 2.
4. It would provide the company a strong long term market position in regards to the company's overall wealth as well as in terms of ingenious items.
Cons:
1. Risk of conversion of R&D costs into sunk expense, greater than option 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Introduction of less number of innovative items than alternative 2 and high number of ingenious items than alternative 1.

Marketing Planning At Just Us Cafes Conclusion

RecommendationsBusiness has actually remained the leading market gamer for more than a decade. It has actually institutionalised its methods and culture to align itself with the marketplace modifications and consumer behavior, which has eventually allowed it to sustain its market share. Business has developed considerable market share and brand name identity in the urban markets, it is recommended that the business ought to focus on the rural areas in terms of developing brand commitment, awareness, and equity, such can be done by producing a particular brand name allowance technique through trade marketing strategies, that draw clear distinction in between Marketing Planning At Just Us Cafes items and other competitor items. Moreover, Business needs to take advantage of its brand name picture of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will enable the business to develop brand name equity for freshly presented and currently produced products on a higher platform, making the effective usage of resources and brand name image in the market.

Marketing Planning At Just Us Cafes Exhibits

PESTEL Analysis
P
Political
E
Economic
S
Social
T
Technology
L
Legal
E
Environment
Governmental assistance

Altering criteria of international food.
Boosted market share. Changing understanding towards healthier products Improvements in R&D and also QA divisions.

Intro of E-marketing.
No such impact as it is good. Issues over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible considering that 2000 Greatest after Company with much less growth than Service 7th Most affordable
R&D Spending Highest considering that 2003 Highest after Company 6th Cheapest
Net Profit Margin Highest possible considering that 2001 with quick growth from 2005 to 2019 Because of sale of Alcon in 2011. Almost equal to Kraft Foods Incorporation Almost equal to Unilever N/A
Competitive Advantage Food with Nutrition and also wellness factor Highest possible number of brand names with sustainable methods Biggest confectionary and also processed foods brand name in the world Biggest milk items and mineral water brand name on the planet
Segmentation Middle and also upper center level consumers worldwide Individual clients together with family team All age as well as Earnings Consumer Teams Middle as well as upper center level consumers worldwide
Number of Brands 4th 1st 5th 2nd

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 67963 399591 618845 993196 779769
Net Profit Margin 8.71% 2.42% 77.43% 5.17% 45.34%
EPS (Earning Per Share) 77.41 2.65 9.63 9.71 32.73
Total Asset 758711 565157 362879 272822 93497
Total Debt 56245 32721 33627 53225 12876
Debt Ratio 23% 91% 87% 11% 16%
R&D Spending 6429 1575 7745 8426 2739
R&D Spending as % of Sales 1.33% 2.42% 3.27% 2.54% 4.77%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations