Eskimo Pie Case Study Analysis

Business is presently one of the biggest food chains worldwide. It was founded by Henri Eskimo Pie in 1866, a German Pharmacist who initially launched "FarineLactee"; a combination of flour and milk to feed infants and decrease death rate.
Business is now a transnational company. Unlike other multinational business, it has senior executives from various nations and attempts to make choices considering the entire world. Eskimo Pie currently has more than 500 factories around the world and a network spread across 86 nations.

Purpose

The purpose of Eskimo Pie Corporation is to boost the quality of life of people by playing its part and offering healthy food. It wishes to help the world in shaping a healthy and much better future for it. It likewise wishes to motivate people to live a healthy life. While making certain that the company is being successful in the long run, that's how it plays its part for a much better and healthy future

Vision

Eskimo Pie's vision is to provide its clients with food that is healthy, high in quality and safe to consume. Business imagines to establish a trained workforce which would help the business to grow
.

Mission

Eskimo Pie's mission is that as currently, it is the leading business in the food market, it believes in 'Excellent Food, Great Life". Its objective is to offer its consumers with a range of choices that are healthy and finest in taste too. It is concentrated on providing the best food to its clients throughout the day and night.

Products.

Business has a vast array of items that it provides to its consumers. Its products consist of food for infants, cereals, dairy products, treats, chocolates, food for animal and bottled water. It has around four hundred and fifty (450) factories all over the world and around 328,000 staff members. In 2011, Business was noted as the most gainful organization.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the business has actually set its objectives and objectives. These goals and objectives are listed below.
• One goal of the company is to reach no garbage dump status. It is working toward absolutely no waste, where no waste of the factory is landfilled. It encourages its staff members to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Eskimo Pie is to waste minimum food during production. Most often, the food produced is wasted even before it reaches the customers.
• Another thing that Business is working on is to enhance its product packaging in such a way that it would help it to reduce the above-mentioned issues and would also guarantee the shipment of high quality of its products to its customers.
• Meet international requirements of the environment.
• Develop a relationship based on trust with its consumers, company partners, staff members, and government.

Critical Issues

Recently, Business Company is focusing more towards the technique of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW method. The target of the business is not attained as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibition H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based upon the idea of Nutritious, Health and Health (NHW). This method deals with the idea to bringing modification in the consumer preferences about food and making the food stuff much healthier worrying about the health concerns.
The vision of this method is based upon the key method i.e. 60/40+ which merely implies that the items will have a rating of 60% on the basis of taste and 40% is based on its nutritional value. The products will be produced with extra nutritional worth in contrast to all other products in market acquiring it a plus on its nutritional content.
This method was embraced to bring more tasty plus healthy foods and beverages in market than ever. In competition with other companies, with an objective of retaining its trust over clients as Business Business has actually gotten more trusted by customers.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing actual quantity of spending reveals 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 Profit Margin is increasing while R&D as a percentage of sales is declining. This indication also shows a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its spending on mergers, acquisitions and R&D development instead of payment of debts. This increasing financial obligation ratio posture a hazard of default of Business to its financiers and could lead a decreasing share rates. In terms of increasing debt ratio, the firm must not invest much on R&D and should pay its present debts to decrease the risk for investors.
The increasing danger of financiers with increasing debt ratio and decreasing share costs can be observed by huge decline of EPS of Eskimo Pie stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow perception building of consumers. This slow development also hinder 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 calculations and Graphs given in the Exhibits D and E.

TWOS Analysis

TWOS analysis can be used to obtain different techniques based on the SWOT Analysis offered above. A quick summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business should introduce more innovative products by big quantity of R&D Spending and mergers and acquisitions. It might increase the market share of Business and increase the revenue margins for the business. It could likewise provide Business a long term competitive advantage over its competitors.
The worldwide growth of Business need to be concentrated on market capturing of establishing countries by expansion, bring in more clients through customer's loyalty. As developing nations are more populated than industrialized countries, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Eskimo Pie ought to do cautious acquisition and merger of companies, as it might affect the client's and society's understandings about Business. It should obtain and merge with those business which have a market credibility of healthy and healthy business. It would enhance the understandings of consumers about Business.
Business needs to not only invest its R&D on innovation, instead of it should likewise concentrate on the R&D costs over examination of expense of numerous nutritious products. This would increase cost effectiveness of its products, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business should move to not only developing however also to industrialized countries. It must widens its geographical growth. This large geographical expansion towards developing and developed countries would lower the risk of potential losses in times of instability in different nations. It ought to expand its circle to numerous countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

Eskimo Pie should sensibly manage its acquisitions to avoid the danger of misconception from the consumers about Business. It must obtain and merge with those nations having a goodwill of being a healthy business in the market. This would not only improve the understanding of customers about Business however would also increase the sales, revenue margins and market share of Business. It would also enable the business to utilize its possible resources efficiently on its other operations instead of acquisitions of those organizations slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based upon 4 aspects; age, gender, earnings and profession. For example, Business produces several items associated with babies i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary items. Eskimo Pie products are rather inexpensive by nearly all levels, but its significant targeted clients, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is composed of its existence in almost 86 countries. Its geographical segmentation is based upon two main factors i.e. average earnings level of the consumer as well as the environment of the area. For instance, 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 division of Business is based upon the personality and life style of the client. For example, Business 3 in 1 Coffee target those customers whose lifestyle is rather hectic and do not have much time.

Behavioral Segmentation

Eskimo Pie behavioral division is based upon the attitude knowledge and awareness of the client. For instance its highly nutritious items target those customers who have a health conscious mindset towards their consumptions.

Eskimo Pie Alternatives

In order to sustain the brand name in the market and keep the consumer intact with the brand, there are 2 alternatives:
Option: 1
The Company needs to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase total assets of the business, increasing the wealth of the company. Nevertheless, spending on R&D would be sunk cost.
2. The company can resell the obtained units in the market, if it fails to execute its method. Quantity spend on the R&D might not be restored, and it will be thought about totally sunk cost, if it do not offer possible outcomes.
3. Spending on R&D supply sluggish growth in sales, as it takes long time to present an item. Acquisitions offer fast results, as it offer the company already established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the company to deal with misconception of customers about Business core worths of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send a signal of company's ineffectiveness of establishing innovative products, and would results in consumer's discontentment.
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 not able to introduce brand-new ingenious products.
Alternative: 2.
The Company must invest more on its R&D rather than acquisitions.
Pros:
1. It would enable the company to produce more ingenious items.
2. It would supply the business a strong competitive position in the market.
3. It would enable the company to increase its targeted consumers by presenting those items which can be provided to a totally new market section.
4. Ingenious items will offer long term advantages and high market share in long run.
Cons:
1. It would reduce the earnings margins of the company.
2. In case of failure, the whole spending on R&D would be considered as sunk expense, and would affect the business at big. The threat is not in the case of acquisitions.
3. It would not increase the wealth of business, which might offer a negative signal to the investors, and might result I decreasing stock costs.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Pros:
1. It would permit the business to present brand-new ingenious products with less danger of transforming the costs on R&D into sunk cost.
2. It would provide a positive signal to the investors, as the general properties of the company would increase with its substantial R&D costs.
3. It would not affect 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 overall wealth in addition to in regards to ingenious products.
Cons:
1. Danger of conversion of R&D costs into sunk expense, greater than alternative 1 lesser than alternative 2.
2. Threat of misunderstanding about the acquisitions, greater than alternative 2 and lesser than alternative 1.
3. Introduction of less number of ingenious products than alternative 2 and high variety of innovative items than alternative 1.

Eskimo Pie Conclusion

Business has stayed the leading market gamer for more than a years. It has actually institutionalised its methods and culture to align itself with the market changes and client behavior, which has eventually enabled it to sustain its market share. Business has developed substantial market share and brand name identity in the metropolitan markets, it is advised that the business needs to focus on the rural locations in terms of developing brand loyalty, awareness, and equity, such can be done by creating a particular brand allowance technique through trade marketing techniques, that draw clear difference between Eskimo Pie products and other rival products. Additionally, Business ought to leverage its brand picture of safe and healthy food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will enable the business to establish brand name equity for newly introduced and already produced products on a greater platform, making the effective usage of resources and brand image in the market.

Eskimo Pie Exhibits