52 Week Lowaverage Daily Ct03 Marketing Profile O

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52 Week Lowaverage Daily Ct03 Marketing Profile O

Critical Thinking 3: Choose either the Marketing Profile or Financial Profile

Scroll all the way down this page and follow the link to submit/upload your paper.

35 points
Submit a PDF or MS Word Doc.

I have added two samples below. Keep in mind these are A+ examples. I am not expecting the amount of detail from you, but I wanted you to see what others have done.

Marketing Profile
Choose a branded product and identify and describe its general marketing profile.

  • What are their products or services?
  • Who is the target market?
  • Identify some of their competing products
  • In general terms, what are their:
    • pricing strategies (Think BMW versus Kia)
    • distribution channels (Think Amazon vs QVC vs Target)
    • marketing communication strategy (Think TV vs Magazines vs Facebook)
  • Include any other marketing observations you identify.

Not longer than 2 pages. Organize your thoughts. An outline format with sufficient detail to understand your analysis is acceptable.

Here is a sample. This was more detailed than required, but given all the online resources, it’s not that difficult to pull off. This was an A+ submission.

Gatorade, currently owned by PepsiCo, was the first product of its kind on store shelves, and it is still the most dominant, commanding almost 80 percent of the sports drink market. However in 2008 Gatorade repositioned itself as the G Series which markets a series of athletic beverages toward athletes with formulations for pre- and post- exercise use.

  • Mission statement and Target Market: Gatorade’s mission statement can be summed up in the phrase “Is it in you?” “It forms the core message behind the Gatorade brand: the sports drink purports to replenish the vital fluids lost during intense physical exercise and help you perform your best.” The creators of the product reasoned that water wasn’t enough to replenish the precious salts and minerals lost during an athlete’s workout. In the beginning, the target market focused on college athletics, especially football players. Over the years, Gatorade has redefined their target market, focusing on 18-24 year olds and a broad range of athletes and active people.
  • Market Segments: Its core customer is pro and college athletes. Others are average people who work out daily at the gym, or have other types of athletic activities. Therefore they adopt a combination of “demographic segmentation” based on the fact that most athletes tend to be 18-34, “psychographic segmentation” – how the consumer describes themselves through a combination of self-values, and lifestyle choices – as well as “benefit segmentation” which groups consumers on the basis of the benefits they derive from the product.
  • Gatorade’s G series Product Extensions and Offerings: According to their website: “Prime” is a pregame fuel that is designed to be consumed 15 minutes before exercise to achieve more energy maximizing the availability of carbohydrates to the muscles. “Performance” (which is the original Gatorade blend beverage) is a combination of electrolytes and carbohydrates designed to use in the moment of activity to help rehydrate, refuel, and push through activity. “Recover” is a protein and carbohydrate beverage that provides hydration and muscle recovery after exercise.
  • Pricing Strategies: Gatorade perceive the value of their product from the customer’s point of view and then prices accordingly, which makes their pricing strategy “value based.” This is a type of “target costing” that is also demand based. Not only does it satisfy the customer, but it also meets their set profit margins.
  • Distribution Channels: Since their customers all over the world, Gatorade has a large widespread distribution. Firstly, Gatorades is always visible at most of the major sporting events like the NBA, NFL, WNBA, NHL, and the like. Additionally, since Gatorade is owned by PepsiCo, they have a contractual distribution system: you will always see Gatorade wherever Pepsi: “retail intermediaries” such as Grocery stores, specialty sports stores, and convenience stores. As well as “nonstore retailing” such as vending machines in gyms and schools.
  • Marketing Communication Strategy: The most common form of promotion is television commercials: some highlight the history, the performance of their product, and/or their research. Most effective is their use of athletics sponsorships and professional endorsements. They also use sales promotions by providing samples at sports events, coupons, discounts and special displays. Gatorade created such an impression among athletes that “word of mouth” is another powerful promotional tool.
  • Competing Products: Gatorade has suffered a decline in sales and dominance over the isotonic category as consumers switch to The Coca-Cola Co. Inc.’s Powerade and other energy drink formulas products. “Powerade has half the salt (sodium) and more calories from carbohydrates than Gatorade. For serious athletes, Gatorade has a slight advantage especially in hot climates. The average person working out would not know the difference. But may enjoy the flavor of PowerAde more due to the extra sugars.” Also PowerAde is cheaper than Gatorade, and a person struggling in this economy might be more attracted to lower prices.

Financial Profile
Choose a publicly traded company and complete the following:

  • Company name
  • Stock symbol
  • Industries in which the company competes
  • Exchange where the stock trades
  • 52 week high, 52 week low
  • Average daily volume
  • Weekly closing price for the last 5 weeks
  • General information about the company (What do they do?)
  • Basic financial information about the company (Annual Revenue, Annual Profit or Loss)
  • Recent development(s) (e.g. a new product, management change, etc.)
  • Prospects (Anything in the near future we might expect to see happen?)
  • Personal appraisal (Your final thoughts).
  • No longer than 2 pages. Organize your thoughts. An outline format with sufficient detail to understand your analysis is acceptable.

Here is a sample. This was more detailed than required, but given all the online resources, it’s not that difficult to pull off. This was an A+ submission.

Company Profile
Company name: Martha Stewart Living Omnimedia Inc.
Industry in which the company competes: Media, Retail & Consumer Product Manufacturers
Stock symbol: MSO
Exchange where the stock trades: NYSE
52 week high: $17.00
52 week low: $7.56
Average daily volume: (3 Month) – 640,055
(10 day) – 2,471,000
Weekly closing price for the last 5 weeks:
7/26/04 – 11.21
7/19/04 – 10.85
7/12/04 – 11.81
7/6/04 – 8.70
6/28/04 – 8.97
General information about the company (What do they do?):
There are three major segments to Martha Stewart’s Omnimedia Company. All aspect of the organization involve do it yourself, how to information and products for the home.

Media
Magazine Publishing: This is the primary business with the magazine titles Martha Stewart Living, Martha Steward Weddings and Martha Stewart Baby/Kids.
Book Publishing: These are mainly special interest publications that were written by Martha Stewart and her magazine editors.
Periodical Publishing: She has a syndicated AskMartha newspaper column

Television: Martha maintain a nationally syndicated television show, the one hour daily Martha Stewart Living as well as a daily one hour show on cable from Martha’s Kitchen. She also maintains a weekly appearance on CBS The Early Show and occasionally has some prime time network specials.
Retail
Non Store Retail: This segment includes the catalogue shopping, direct mailers and the internet sites that hose Martha Stewart products. The largest and most popular internet sites are MarthaStewart.com and marthasflower online store. She also maintains a gift and bridal registry with other retailers.
Consumer Products Manufacturers
Martha Stewart living has literally built its brand on house wares and furniture products. She has a partnership with Kmart retailers to sell her products in their stores. The products range from Sherwin Williams wall paints to kitchen mitts and gloves.

General financial information (Sales, profit):
2003 Sales (mil.) – $245.8
1-Year Sales Growth – (16.7%)
2003 Net Income (mil.) – $2.7
Revenue: $232,320,000
Profit Margin (ttm) – -5.86%
Operating Margin (ttm) – – 6.96%

Recent developments (e.g. a new product, management change, etc.):
There have been a plethora of recent developments for this company, which has caused chaos and turmoil throughout this last year. Most recently is the changes that have been made to the board. After the resignation of the lead director Chairman, a new team has quickly been reassembled. While this shake up is the most recent, the biggest hit that the company and stock received was due to the legal trouble facing the creator and leader of the Company Martha Stewart. After being accused of Insider trading and subsequently sentenced to prison, the stock has fluctuated dramatically in response to these turns of events. Many people have lost faith in the brand while others seem more willing to show overwhelming support to the decorating diva and her enterprise. Kmart, the largest in store retailer for Martha Stewart has also been in recent legal trouble which is possibly the culprit for additional instability.
Prospects (Anything in the near future we might expect to see happen?):
The next year should provide even more twists and turns for all aspects of the company. With Martha Stewart just having been sentenced to prison and waiting appeal, she can still provide a hand in the company. Although when she does presumably do her 5 month sentence in prison, se will no longer be as involved with the management. The media outlet is affected as she will not broadcast from her jail cell, the publication has already suffered as advertisers are reluctant to associate themselves with her brand and the fall out of Kmart’s legal issues could also be another huge problem. There are many things working against the success in the near future. The stock did rise after Martha was given her sentence, being that it is not too harsh or long, we can expect her to be fully immersed in the business in the future. She is not currently imprisoned, but when that does happen we may see dramatic changes in profitability and stock performance for the company.
Personal appraisal (You final thoughts.):
I think that the Martha Stewart industry has been somewhat exciting to track and watch in the recent few months. With all of the twists and turns in the legal world we have seen how each has affected the business industry as well. A company that is so heavily based on the name and reputation of a single individual can suffer or persevere. When she was extremely popular the company soared, but now with the current problems it is very apparent how risky it is to risk the success of an entire company on a single person. I look forward to seeing what the future brings for the company and the stockholders.

Include addresses of web-sites you visited for your research:
http://www.hoovers.com/mso/–ID__53053–/free-co-f…
http://marthastewart.com

http://finance.yahoo.com/q?s=MSO