Market Analysis of Automobile Industry in India 2013 Essay

1. Introduction Automobile industry is the key driver of any growing economy. Due to its deep forward and backward relation with almost every segment of the economy, the industry has a string and positive multiplier effect and thus propels progress of a nation. With the falling demands for vehicles in most of the mature markets due to the global recession, high fuel costs and urban driving restrictions, the industry is focusing its attention on expanding middle classes in the new powerhouses of China, India, Brazil, and other growing nations. India’s per capita real GDP growth at 8.6% (CAGR) over the six year period 2005-2011 had contributed substantially towards raising the standard of living of households, which in turn had been one of the key drivers of growth for the country’s automobile industry. But over 2011-12 and 2012-13, inflationary conditions, firm interest rates, rising petrol prices as well as weak monsoons adversely impacted disposable incomes causing a consumption squee ze. [1] According to the global automotive executive survey 2013 done by KPMG, 86% of the respondents feel market growth in emerging nations is an important trend- a view shared by auto executives from both the TRIAD market(Japan, Western Europe and North America) and the BRICs. The developing markets along with e-mobility and the changing urban environment had brought about a change in the automobile industry. 56% of the respondents in the BRICs feel innovative urban vehicle design concepts are an important trend compared to 55% from the TRIADs. The Indian automobile market is one of the competitive markets with low costs, which make it an attractive assemble base for foreign automobile manufacturers. India is also the second fastest growing automobile market in the world after China.[2] 2. Market Segmentation The automobile industry has been broadly divided into the two wheelers, passenger vehicles, commercial vehicles and three wheelers. The various sub divisions of each segment is shown in the following figure 2.1. Figure 2.1. Market Segmentation of Automobile Industry Source http://www.ibef.org/download/Automotives-March-220313.pdf Source Figure 2.1. Market Segmentation of Automobile Industry Source http://www.ibef.org/download/Automotives-March-220313.pdf Source The two wheelers dominate the production volumes in FY 2012, which contributed for more than three quarters of the total automobiles production in the country. India is the world’s 2nd largest two wheeler producer and the 4th largest commercial vehicle producer. Figure 2.2. Market share by volume (FY12) Source http://www.siamindia.com/scripts/market-share.aspx 2. Passenger Vehicle Segments The segments in the passenger vehicle industry are done based on the price, utility and the length of each vehicle. There are different parameters based on which the cars available in the Indian market are categorized. The technically defining parameters are based on the length of the car, engine capacity, features offered, seating capacity and structure of the car etc. SIAM or Society of Indian Automobile Manufacturers divides the Indian passenger vehicles in the segments A1, A2, A3, A4, A5, A6, B1, B2 and SUV. The classification is done solely based on the length of the automobiles. The details of the segments are mentioned as in table 2.1. Car Segment| Length of the car/Model type| Car model belonging to the segment| A1| Up to 3400mm| Nano| A2| 3401 to 4000mm| Alto, i10, Zen, Wagon R| A3| 4001 to 4500mm| Manza, Logan, Dzire, City| A4| 4501 to 4700mm| Corolla, Octavia, Optra| A5| 4701 to 5000mm| Accord, Camry, Sonata| A6| More than 5000 mm| Mercedes S class| B1| Vans| Versa, Omni| B2| MUV/MPV| Sumo, Innova| SUV| SUV| Vitara, CRV| Table 2.1. Passenger car segmentation based on length However, though it is simple and easy to divide the passenger cars based on their length, it is not at all practical. The price of a car isn’t determined by length only. A shorter car might be priced higher than a lengthier model. Also the features and configuration of the car models doesn’t depend on the car length. Hence, to avoid all the confusions the Indian passenger cars are popularly divided into the below mentioned segments according to the following properties, as in table 2.2. Car Segment| Distinguishing feature of the cars in this segment| Car model belonging to the segment| A| Cars priced below Rs. 3.5 Lakh| Alto, Spark, Nano, Eon| A1| Hatchback priced lower than Rs. 6 Lakh| Santro, Indica, Beat| A2| Hatchback priced between Rs. 6 to 7.5 Lakh| Ritz, i10, i20, Swift, Figo| B1| Vans| Versa, Omni| B2| MUV/MPV| Sumo, Innova| C1| Sedan models priced below Rs. 8 Lakh| Indigo, Fiesta, Sunny| C2| Sedan models priced between Rs. 8 to 9.5 Lakh| Verna, Manza, Linea| D1| Premium Sedan models priced below Rs. 15 Lakh| Fluence, Corolla| D2| Luxury Sedan models priced below Rs. 25 Lakh| Sonata, Camry, Kizashi| SUV| SUV| Vitara, CRV| Table 2.2. Passenger car segmentation based on price Body type is the other most popular factor for classification of passenger vehicles. This segmentation process is not only limited to the Indian sub-continent, this is a common method that enjoys popularity throughout the world. The segments we suggest according to the car body types and the pricing are mentioned as in table 2.4. Range| Pricing| Entry| Below 5 lakhs| Economy| 5-15 lakhs| Premium| 15-30 lakhs| Luxury| 30-60 lakhs| Super Luxury| 60 lakhs and above| Table 2.3. Segment pricing Car segment| Range| Cars in Indian market| Hatchback| A1| Entry| Maruti Alto 800, Nano, Hyundai Eon, Maruti WagonR| | A2| Economy| Hyundai i20, Maruti Swift, Fiat Punto, Volkswagen Polo| | A3| Premium| BMW MiniCooper, Fiat 500, Volkswagen Beetle| | A4| Luxury| N.A.| | A5| Super Luxury| | MUV/MPV| B1| Entry| Maruti Eeco| | B2| Economy| Maruti Ertiga, Toyota Innova, | | B3| Premium| Mercedes Benz A-class, B-class| | B4| Luxury| N.A.| | B5| Super Luxury| | SUV/Crossover| C1| Entry| Mahindra Thar| | C2| Economy| Ford Ecosport, Renault Duster, Force One| | C3| Premium| Skoda Yeti, Mitsubishi Pajero, Toyota Fortuner, Maruti Grand Vitara| | C4| Luxury| BMW X1, Audi Q3, Landrover Freelander 2| | C5| Super Luxury| Audi Q7, BMW X6, Volkswagen Tourareg| Sedan| D1| Entry| HM Ambassador| | D2| Economy| Maruti Dezire, Nissan Sunny, Toyota Ethios| | D3| Premium| Maruti Kizashi, Skoda Superb, Hyundai Sonata| | D4| Luxury| Volvo S60, Audi A4, BMW 3 series, Audi S4| | D5| Super Luxury| Mercedes Benz S class, Audi S6, Audi A7, Jaguar XJ| Van| E1| Entry| Maruti Omni, Tata Venture| | E2| Economy| Tata Winger, Tata Winger Platinum| | E3| Premium| N.A.| | E4| Luxury| | | E5| Super Luxury| | Table 2.4. Passenger car segments 3. Market Analysis The various aspects involved in the automobile industry, namely the market size, market trends, penetration rate, growth rate, etc. are analyzed in this chapter. The distribution channel involved for the passenger vehicle segment is also discussed here. 3.1. Market Size In the passenger vehicle segment, there has been an increase in sales by 1.20% in the FY 2012-13 compared to that of FY 2011-12 with figures of 20,626,227 units of production of passenger vehicles, as shown in figure 3.1. The cumulative average growth rate (CAGR) for the period from 2008-12 was 14% compared to the estimated CAGR for the period from 20013-21 which is 13%. 3.2. Market Trends One of the major player in the world automotive industry is Indian car market. It is the second in automobile industry after China. Indian car industry is facing a serious problem is present year. Car sales are down by more than 6% in FY 2012-13 compare to last year of FY 2011-12. The main reasons are high interest rates, fuel price, high inflation, low movement in other sectors etc. But irrespective of the sales slump, Utility vehicle segment is having the maximum growth in this segment at 52%. Ertiga has put successful foot print this segment. This vehicle is giving good competition to Innova. SUV segment also grown due to its fuel economy and price combination became top choice for larger families. Kerala now accounts for 10 per cent of India’s luxury car sales. Kochi in particular has emerged as India’s strongest growing market for luxury car brands like BMW, Audi, Mercedes and Jaguar Land Rover. Another major trend in the automobile industry is the age of the potential customers are decreasing with the role of IT and other industries. 3.3.Market Growth rate The growth in passenger vehicle segment is at 2.15% for the FY 2012-13 compared to that of FY 2011-12. Cars have a negative growth of -6.69% when compared to that of utility vehicles which has an increase by 52.20% and vans with a minor growth of 1.08%. Figure 3.3. Passenger Vehicle segment growth rate for FY 2012-13 Source http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/ 3.4. Market Penetration India has shown a great potential in passenger vehicle segments with penetration rate of 13 vehicles per 1000 population compared to the other BRIC countries making it the most attractive market for the industry presently. Figure 3.4. Market penetration for BRIC countries FY2010 per 1000 population Source Worldbank Figure 3.4. Market penetration for BRIC countries FY2010 per 1000 population Source Worldbank 3.5. Market Opportunities Car sales in India may be on a downside at the present but the total automobile market size will triple to 9.3 million units by 2020, according to global marketing information services company JD power. Driven by enhanced demand as the number of people with disposable income increases, the sector will grow at a compounded annual growth rate of 16% during the period as per the market research firm. They forecast India to have a consistent and gradual growth such that the automobile market will triple from the present size of about 9.3 million units. 3.6. Competition Intensity 3.7. Pricing Structure 3.8 Market Profitability 4. Distribution Channels * Company has 246 local suppliers and 20 global ones – they all function in a seamless manner. The company strictly receives their supplies ordered the previous night in a two hour slot the next day. A far cry from the initial 30 day supply period. * The company had adopted Just In Time (JIT) to achieve higher operational efficiencies and reduce inventory carrying cost. Maruti Suzuki has adopted the e-Nagare system of electronic flow which has completely transformed its supplier chain. * To achieve JIT material supplies, the company has given preference to locally based suppliers. Over 76% of the company’s 246 suppliers are located within 100 kms of radius. They have strategically located the suppliers of bulky components such as instrument panels, fuel tanks, bumpers, seats, etc. adjacent to the company’s manufacturing facilities in the Suppliers’ Park. * In order to enter new markets, Maruti Suzuki has ventured into contract manufacturing. For example vehicles manufactured in India are sold under the Nissan brand in European market. * Using a combination of Unix Shell programming, Oracle forms, .Net, and Windows FTP technology, the internal team brought transparency to the export supply chain. * Maruti Suzuki has 933 dealerships across 666 towns and cities in India. It has 2,946 service stations in 1,395 towns and cities throughout India. It has 30 Express service stations on 30 National Highways. 5. Competition Maruti Suzuki is India’s largest OEM of passenger cars, netting about 55% of domestic sales. The biggest competitor for Maruti is Hyndai Motors. Quality Product/service| 0 50 100 Maruti / Hyundai| Reputation in eyes of customers| 0 40 50 100 Hyundai Maruti | Prices| 0 40 50 100 Maruti Hyundai | New productslaunch/development| 0 50 100 Maruti / Hyundai| Table 5.1 5.1. Success factors of Hyundai * Refreshing the brand image is one of the key success factor of Hyundai. In the last decade, Hyundai Motor has made significant inroads in building its brand from the â€Å"Worst Car Ever Made† to a 72nd ranking in the 2007 Best Global Brand survey. * Efforts were made from Hyundai in this aspect and as a result, Hyundai Motor has been recognized as a producer of quality cars which are reliable and affordable * Stylish design of the products and tagline â€Å" new thinking new possibilities† made the company to collaborate with its branding. * Global presence for Hyundai is high when compared to Maruti. 5.2. Competitors for Maruti Hyundai, Toyota, Honda and Chevrolet are the main competitors for Maruti, with Hyundai and Chevrolet the main competitors in small car segment and Toyota and Honda joining in the race recently with the launch of Ethios and Brios respectively. 5.3. New competitors * Honda is coming up with new cars which are targeting the same group of Maruti products Ex: Amaze, Dzire * Hyundai is coming up with Grand i10 as a competition for Swift. * Other car makers like Nissan, M&M are also releasing products in hatchback car segment rigorously which has to be faced by Maruti. 6. Reference 1) http://www.kpmg.com/KZ/ru/IssuesAndInsights/ArticlesAndPublications/Documents/KPMGs-Global-Automotive-Executive-Survey-2013.pdf 2) http://www.icra.in/Files/ticker/SH-2013-Q2-1-ICRA-Two-Wheeler.pdf 3) http://profit.ndtv.com/news/corporates/article-5-facts-about-indias-growing-two-wheeler-market-305607 4) http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/ 5) http://www.strategy-business.com/article/00162?gko=8346f 6) http://www.cardekho.com/compare/hyundai-elantra-and-maruti-kizashi.htm 7) http://www.motorbeam.com/cars/maruti-suzuki/maruti-suzuki-ranks-highest-in-customer-satisfaction/ 8) http://cars.pricedekho.com 9) http://www.cardekho.com 10) http://www.prokerala.com/automobile/cars/ 11) http://autoenthu.blogspot.in/2012/08/passenger-car-segments-india.html 12) http://profit.ndtv.com/news/industries/article-indian-auto-market-size-to-triple-to-9-3-million-units-by-2020-jd-power-319349 13)

Marketing Plan for Sierra Nevada Brewery

The purpose of this document is to create a marketing plan for Sierra Nevada Brewery (SNB); specifically, developing a plan to expand the product line depth by launching a new product variation that incorporates Sierra Nevada’s traditional ale, with the flavor of blackberry. First, objectives are clearly established, followed by a situational analysis using a SWOT protocol. A market analysis is performed based upon the STP procedure, which directly leads to the marketing strategy. Financial projections are provided, along with strategy to implement the marketing plan, which leads to the final segment; evaluation and control metrics, which will be used to analyze the efficiency and effectiveness of the marketing plan.SNB is a financially strong company, as represented by research and their ranking as the #2 producer of craft beer in the United States. They have positioned themselves as being an elite craft beer producer by using high-quality ingredients, producing esteemed beer s, being socially responsible and ethical, and focusing on a niche market. The need and desire to be innovative, in conjunction with SNB’s goal to have a brewery on the East Coast in order to enhance their supply chain management, led to the proposal to introduce the of Blackberry Ale; their first flavored ale. Since SNB has effectively marketed all of their beers, adding the Blackberry Ale followed a similar strategy.The target consumers are educated, middle-to-upper-middle class professional men that refer to themselves as beer connoisseurs, and revere artisanal brewing. Blackberry Ale will be packaged and marketed as a premier craft beer and placed in urban areas with an upscale atmosphere. Pricing will be set competitively at $9.59 for a 6-pack of 12oz bottles. Based upon research, trends, and SNB’s history, the  recommendation is for SNB to launch Blackberry Ale in the first quarter of 2014, mirroring the grand opening of the new East Coast brewery in North Caro lina. Blackberry Ale is expected to increase SNB’s profitability and value; thereby, helping to continue the increasing strength of the SNB family brand. Marketing Plan for Sierra Nevada BreweryCompany OverviewSierra Nevada Brewery (SNB) was officially founded in 1979, in Chico, California. This small, college-town, located 90 miles north of Sacramento, sits at the foot of the Sierra Nevada foothills, for which the brewery is named after. What makes this brewery unique is its history. Ken Grossman, the founder and master brewer of SNB, started experimenting with homebrew in 1970, under the tutelage of his friend’s father; this is where his passion for brewing beer began to flourish.In 1976, Ken partnered up with Paul Camusi to take home brewing to a higher level. Since hops were scarce for home brewers in the 1970’s, Ken traveled to Yakima, Washington, to obtain whole-cone Cascade hops, which produce a citrus-pine flavor and aroma that makes SNB distinct. SNB is renowned for its illustrious beers, specifically for the hop-forward brewing method, which adds distinctive flavors and aromas to the beers. As the demand for SNB’s esteemed beers rapidly began to outpace supply, Ken expanded into a local warehouse, brewing out of defunct stainless steel tanks that he recovered from dairy farms in California and Oregon. Since 1980, SNB has continued to expand and capture a larger portion of the market share.Objectives and GoalsSNB wants to provide high quality beer to consumers throughout the United States; furthermore, they want to introduce new specialty products, such as flavored beers. With the determination and resources that SNB possesses, they have positioned themselves into becoming the top-rated premium brewery in the U.S. According to McCurry (2012), â€Å"Sierra Nevada is the No. 2 U.S. craft brewer in terms of sales behind Sam Adams. It plans to have an initial capacity of 300,000 barrels and will employ 90† (para. 2). An increasing demand for SNB beer in the Eastern U.S., combined with additional transportation costs has necessitated the establishment of an East Coast brewery.A major objective of SNB is to build a brewery on the East coast,  allowing them to efficiently market their premium beers to include all states east of the Mississippi River, while adding value to the overall organization. McCurry goes on to state: For a decade, Sierra Nevada served eastern markets very efficiently, using a lot of piggyback rail with refrigerated containers. Bottle-aged beer has to be refrigerated, and it's expensive to run across the country, but the company did it very successfully. As the market grew in the East and capacity constraints started to be reached in Chico, it became obvious that what is needed is a new brewery and it should be built in the East to address cost and service issues. (para. 9)The addition of an East coast brewery should strategically position SNB above Sam Adams, therefore claimin g the number one spot in craft beers, and further increasing the SNB brand. Specifically, the objective is to expand their product line and break into the growing flavored ale market. Situational AnalysisSNB holds a relatively strong position in the beer industry. Their strengths are perhaps the organization’s greatest asset. SNB’s state of the art, on-site R&D Department, has positioned them to be an elite brewery, by providing pristine and innovative beers. This allows them to differentiate themselves from competitors. â€Å"The investment in the science of brewing made Sierra Nevada widely regarded as one of the most sophisticated research and quality focused breweries in the world† (Sierra Nevada, 2013, para. 23). Additionally, SNB prides itself as being a progressive-green and socially responsible company; the nation’s largest private solar array provides 1.5 megawatts of electricity, while the on-site auditorium houses community events.Strengths Wea knesses Opportunities Threats On-site R&D #2 craft brewery Expand to the East coast where SNB has a small presence. Intense competition from other craft breweries Strong brand name Small company; limited resources for promotions and advertising Enhance supply chain management Anti-drinking campaigns Green and socially responsible; sustainability One manufacturing location Growing preference of consumers for higher quality craft beers and flavored ales. Health concerns of consumers about beer consumptionOne key element that adds value to SNB is Ken Grossman’s continuous concern for the environment and the community: Their installation of four 250-watt co-generation fuel cells earned them a visit from Governor Arnold Schwarzenegger. They have long had the first largest private installation of solar panels in the nation. They engage in heat recovery, CO2 recovery, water recycling, bought their own cows to eat their spent grains, and they don’t believe in buying carbon off sets.And now, they have a new composting system—all presented with â€Å"again, it’s not the greatest ROI† from Grossman, â€Å"but it’s the way we want to do things around here, it’s part of our story.† (Chang, 2010, para. 4) SNB sets the bar high for organizations in being ethically and socially responsible. Although SNB can save money by cutting corners, they continue to take the high road and focus on the well-being of the community, as well as the environment.Market AnalysisCurrent trends and data indicate craft breweries are gaining market strength. The long term dominance by large beer manufactures is declining. According to Ciccone (2012), â€Å"In 2011, all top 25 craft breweries experienced increases in revenues. Craft breweries recorded 15 percent growth in volume of barrels shipped, compared to a 1.5 percent decrease in the beer industry overall† (para. 2). SNB received second place honors during 2011 in Best-Selling Craft Beers. #2 – Sierra Nevada Brewing Co.Location: Chico, Calif. Barrels Sold in 2011: 858,000 — 9.2 percent increase since 2010 Popular Brands: Sierra Nevada Pale Ale, Ovila Abbey AlesJulia Herz, Craft Beer Program Director for the Brewers Association, stated,  Ã¢â‚¬Å"A light American lager no longer satisfies every taste. Americans have developed a discerning palate, so if it's not world class quality, it won't survive† (Ciccone, 2012, para. 3). The market for craft beers is growing, and SNB is positioning itself to dominate the craft beer market. SNB’s strength is becoming more apparent, as they continue to gain market share every year. Clarke (2012) stated that a 2011 study indicated craft beer grew by 16.3%, the largest growth by any beer category; furthermore, 11% of craft beer’s growth arose from new drinkers in 2010, compared to an astounding 46% in 2011. An import element for SNB to consider it that Millennials account for 46% of new craft b eer drinkers.The market for craft beer continues to grow at a rapid rate; additionally, all of this growth is occurring during difficult economic times. The overall success of SNB can largely be attributed to its marketing strategy. They segmented the market by focusing on beer drinkers in the U.S. market. SNB further segmented the market down to craft beer consumers. The craft beer segment does not include low-income, uneducated, party-oriented beer drinkers. SNB targets male craft beer consumers, as marketing strategies have indicated that targeting woman can have an adverse effect. Clarke (2012) goes on to say that women are apt to project contemptuous ridicule towards beers that are marketed as being women-friendly, especially if the beer is specifically targeted to them.Specifically, SNB targets College educated, middle-to-upper-middle class professional men, ages 21-44 years old that refer to themselves as beer connoisseurs, and revere artisanal brewing. â€Å"By volume, 80% of craft beer was enjoyed by white (non-Hispanic) consumers, over half of them in the 21-44 year age bracket. More than 75% earned at least $50,000/year, and 43% were college-educated Craft beer connoisseurs, as they prefer to be called, savor the distinctive taste and aroma of craft beers† (Clarke, 2012, para. 6). With the target consumer being established, SNB can effectively position themselves.Craft beer connoisseurs are already aware of the prestigious SNB image; therefore, positioning the new craft beer innovation will ensure that consumers perceive the product as a premier, black berry-flavored craft beer, created for the affluent craft beer connoisseur. Marketing StrategySNB’s product, a blackberry flavored ale, is the first flavored beer that  they will produce. â€Å"There are a lot of new flavors out there, and beer drinkers are willing to try brands they haven't tried before because they trust the category, Gatza says.† (McCurry, 2012, para. 62). By offering flavored ale, SNB strategically appeals to its current consumer based, as these consumers will want to try the latest creation, while increasing market penetration by acquiring new consumers who are intrigued by the new product and want to try it.The new product is Blackberry Ale; an amber colored light ale with the subtle flavor and deep notes of blackberry. This premier brew will be packaged in dark glass bottles. Tastings (n.d.) emphatically encourage the use of dark glass bottles, as they inhibit the photochemical effect produced by daylight, specifically, the ultraviolet spectrum, which can create â€Å"off flavors† and degrade the freshness of the beer. Additionally, twist-off crowns don’t protect beer against oxidation as well as pry-off crowns; therefore Blackberry Ale will include pry-off crowns. An adhesive label, containing product information and displaying the illustrious SNB logo, will be applied to each bottle. Finally, the label will display t he brand-Sierra Nevada Blackberry Ale; thereby, using a family name brand strategy. Distribution StrategyBlackberry Ale will be distributed strategically through select retailers as to protect SNB’s premier image, while increasing market penetration: Taprooms Upscale restaurants High-end bars and clubs Gourmet specialty stores Beer and wine bistros Prosperous grocery storesIndirect distribution using established partnerships will facilitate the placement of Blackberry Ale into the selected retailers. This link provides a list of all established distributor partnerships throughout the U.S.: http://www.sierranevada.com/distributors/ Pricing StrategySNB’s price will reflect a premium price as their products are known for being high-quality and in accordance to the product positioning. They already benefit from having an effective pricing strategy; therefore, Blackberry Ale will be priced in-line with SNB’s current beers that are  already on the market, while bein g competitively priced with SNB’s strongest craft beer competition, Sam Adams Blackberry Witbier. Therefore the price for Blackberry Ale will be set at $9.59 for a six pack of 12oz bottles.Promotion StrategyIn order to promote the latest addition to the Sierra Nevada line, a multitude of media and promotions will be used to facilitate the product’s introduction into the market: Advertising PromotionSocial media including Facebook, Twitter, Linkedin, and Google+ Advertising in key magazines: The Beer Connoisseur, DRAFT, Ale Street News, Northwest Brewing News, The Celebrator Beer News, Great Lakes Brewing News, Yankee Brew News, Brew Your Own, Beer Advocate , Ask Men, Maxim, Esquire, GQ, Details, and Sports Illustrated Sales PromotionFree 4oz sample coupons (limited time only-90 days)Free 4oz samples when product is only available on-tap (limited time only) $2.00 off introductory coupons (expires after 90 days)Buy 3, get 1 free (buy any 6-pack of SNB beer, get 1 free 6- pack of Blackberry Ale-90 day promotion) All promotions will terminate after 90 days of product introduction to assess the effectiveness of the promotions and determine future courses of action. Financial ProjectionsThe chart below, provided by the Brewers Association, clearly illustrates the continuous growth of the craft beer industry. Based upon research and the strong financial position of SNB, adding the Blackberry Ale brand to the organization can only increase the profitability and value of the organization. Each time SNB has added depth to the Sierra Nevada line, the company has only prospered financially, and in terms of gaining exposure, which adds value to the organization. Additionally, the community has benefited from SNB’s success, as SNB has been proven to be a strong player in social responsibility.SNB anticipates the production of a new, East Coast brewery in 2014, will support its objectives, and while increasing the profitability of the organization. The ad dition of a second brewery strategically adds value to  the organization as it enhances supply chain management, increases awareness, while potentially doubling production and capacity. it is estimated that after introduction sales of Blackberry will grow, reaching 1% of SNB beer sales after 1 year. Blackberry Ale is expected to break even and become a profitable product, based on expected sales and costs of introduction into the market. Implementation PlanBlackberry Ale has already passed all necessary guidelines established by SNB. As the fourth quarter quickly approaches, SNB will continue its successful strategy of producing Celebration Ale; a highly demanded brand that is synonymous with the holiday season. SNB is fearful that launching Blackberry Ale during this time would conflict with the established and successful release of the seasonal Celebration Ale; therefore, the launch of Blackberry Ale into the market is planned to coincide with the grand opening of the new brewer y, under construction in North Carolina, which is the first quarter of 2014.Evaluation Metrics and ControlSNB has determined it will analyze the addition of Blackberry Ale, ninety days after the launch of the product into the market. All introductory promotions will terminate after ninety days to access the future profitability of adding flavored ale to the brand line. Additionally, Blackberry Ale will be analyzed again each month, for the next three months to determine how the new product sales without added promotions. After six months, a thorough analysis focusing on sales, market share, brand recognition and profitability will be used as evaluation metrics, to determine the profitability, and future of Blackberry Ale.

Demonstrative Communication Essay

Communication is often defined as the transmission of sending and receiving messages; connecting with individuals through the exchange of messages, thoughts, speech, signals, behavior, or writing. Communication can be verbal or nonverbal, written or visual. Oral communication includes spoken words and writing dialogues. Not involving or using words of speech is known as nonverbal communication. Facial expressions, body posture, eye contact, or gestures are part of nonverbal communication. Written communication can be through e-mails, reports, articles and many other ways. Facial expressions are a form of demonstrative communication. Communicating includes different facial expressions, tone of voice, or body language to deliver the message. A smile is an example of a positive facial expression, and a frown will be viewed in a more negative manner. Some interpret a grin as arrogance, which obviously would have a negative effect. The audience could take this in the wrong manner and create an isolated situation. Depending on the subject that is being discussed it is up to the lecturer to bring out the right facial expressions. If the subject relies on a more serious matter, the lecturer should not frown but instead maintain a serious face to get the point across. If there is a sense of comedy in the discussion or presentation, the lecturer needs to maintain some laughter as well as smiling during the presentation. Body language is another form of demonstrative communication. Body language can push to be very successful in many situations including social interaction and communication with people. A negative type of body language would be someone crossing their arms. Even if the intention and words are still good, the body language over powers that and the audience still views this as a negative vibe. Another important and effective part of body language is eye contact. When lecturing to an audience, direct eye contact with the audience indicates confidence and a vast knowledge of the topic of discussion. Hand gestures and moving back and forth in front of an audience during a lecture can be helpful to keep the attention of the audience. These nonverbal forms of communication add to the message the lecturer is trying to get across. However, moving too much can cause a negative affect because it can cause a distraction. Nonverbal communication is very important to our communication process. Included in nonverbal communication are things such as facial expressions, gestures, eye contact, posture and even the tone of one’s voice. During a lecture, the speaker will use different methods to get with the audience, playing a big role as well will be one’s voice and how it is used to relay the message. One can change the tone and tempo of talking; and can connect with the audience more effectively. When we speak, other people can â€Å"read† our voices in addition to listening to our words. These nonverbal speech sounds provide subtle but powerful clues into our true feelings and intentions. When speaking to an audience maintaining the focus of the group is important. Raising our voice when losing the attention of the audience is a technique used to emphasize a particular point during a lecture. When a speaker talks in a monotone voice there is a chance of quickly losing the attention of the group the lecturer is speaking too and can cause to miss important parts of the lecture. Demonstrative communication as a sender means showing and saying what we want them to hear. By saying to the audience that the lecturer needs them to listen better, as the lecturer is looking at the phone is like saying one thing and showing the audience another, proving the distractions are not good for either side. Also it would be important not to have a big smile on one’s face or to look as if they are laughing. In contrast, by the lecturer telling the audience that they need them to listen better while looking them in the eye and being firm with the tone of voice and holding a straight and focused look, the lecturer is communicating to them via mouth, eyes, and tone of voice that the audience needs to listen and pay attention. Also during this communication, it would be good to expect feedback from the audience. This would show the audience that one is serious, and could show the lecturer if the audience is truly paying attention and show how well the audience will receive the information being communicated to them. The receiver would need to hold eye contact to show that they understand the information. In conclusion, creating the ability to understand and use nonverbal communication is very effective. Using body language to carry out positive feelings would help you express one’s thought out to the public a little easier. Therefore, being able to communicate send and receive a massage thoroughly with the audience being able to understand. Using facial expressing such as body movement, eye contact is a very effective way to demonstrative communication. REFERENCES Cheesebro, T., O’Connor, L., & Rios, F. (2010). Communicating in the workplace.

Quantitative Methods Assignment Example | Topics and Well Written Essays - 2750 words

Quantitative Methods - Assignment Example For calculating the monthly expenses for the both types of mortgages first the nominal interest rates should be used to calculate the effective annual interest rates. This is done by using the following formula: I=(1+r/x)^x-1 In order to obtain the effective annual rates the Microsoft Excel formula was used: EFFECT(nominal_rate,npery), where nominal_rate is the annual nominal rate and npery is the number of compounding times per year. These values were calculated in Microsoft Excel using the formula: PMT(rate,nper,pv,fv,type). Rate is the interest rate of the mortgage, Nper is the total number of repayments for the loan, in this case 300 months (25*12), Pv is the present value of the total repayments that are to be made, Fv is the future value that one wishes to attain after the last repayment, in this case 0 and lastly Type indicates whether the repayment is made at the beginning of the month (0) or at the end (1), in this case we assume it is made at the start of the month so 0. In order to evaluate the Interest Only Mortgage option we must first calculate the effective annual interest rate on the deposit placed in the sinking fund. This will be done in the same way as for the Repayment Mortgage. The results are presented in the table below: The monthly cost Interest Only mortgage consists of the interest paid over the mortgage period and the amount accumulated in the sinking fund.... epayments for the loan, in this case 300 months (25*12), Pv is the present value of the total repayments that are to be made, Fv is the future value that one wishes to attain after the last repayment, in this case 0 and lastly Type indicates whether the repayment is made at the beginning of the month (0) or at the end (1), in this case we assume it is made at the start of the month so 0. In order to evaluate the Interest Only Mortgage option we must first calculate the effective annual interest rate on the deposit placed in the sinking fund. This will be done in the same way as for the Repayment Mortgage. The results are presented in the table below: Nominal interest rate on deposit in sinking fund Number of compounding periods per year Effective annual interest rate on deposit in sinking fund 5.50% 1 0.055 5.75% 1 0.0575 6.00% 1 0.06 6.25% 1 0.0625 6.50% 1 0.065 6.75% 1 0.0675 7.00% 1 0.07 7.25% 1 0.0725 7.50% 1 0.075 7.75% 1 0.0775 8.00% 1 0.08 8.25% 1 0.0825 8.50% 1 0.085 8.75% 1 0.0825 9.00% 1 0.09 The monthly cost Interest Only mortgage consists of the interest paid over the mortgage period and the amount accumulated in the sinking fund. In order to calculate the monthly payment into the sinking fund using Excel the PPMT(rate,per,nper,pv,fv,type) formula was used where rate is the interest rate per period, per is the period, nper is the total amount of payments in the sinking fund, pv is the present value of the mortgage, fv is the future value expected in our case 0 and type indicates when the monthly payments are due in this case we assume that they are made at the beginning of the period so we take the value 1. The results are listed below: Annual interest rate Number of years in the loan Amount of loan Payment into investment plan 5.50% 25 350000

Designing babies Essay Example | Topics and Well Written Essays - 500 words

Designing babies - Essay Example The Greeks had similar ways to cleanse their society. The Spartans used to have their babies inspected by a council of elders and the potential unhealthy ones were left to die outside. This concept of artificial cleansing is referred to as eugenics, a practice seen in the twentieth century under Hitler’s Nazi Germany. The atrocities committed during that time put a dampener on this practice. Advancement in the field of genetics has resulted in a new interest with regard to health and eugenics. Pre-implantation Genetic Diagnosis is a technique by which one or two cells are removed from a blast cyst generated by in vitro fertilization so that the embryos can be tested for single gene disorders or chromosomal abnormalities. The benefit from this is parents trying to have children have an opportunity to eliminate some possible diseases and abnormalities they may carry a gene for. The development of a technique called pre-implantation genetic diagnosis (PGD) gave further fillip to this concept. The basic idea was that an embryo could be tested to find a perfect donor for treatments like organ and bone marrow transplantation. But artificial intervention has raised a lot of moral and ethical dilemmas. It can be justified if this is done in a life and death situation where a transplant can save a life (without the donor being seriously deprived in turn). But this technique has now degenerated into other disturbing areas. According to the celebrated author Debora L Spar, parents now utilize this procedure not for health reasons but by â€Å"those who want to select their child’s gender.† (Spar, 99). The Steinberg’s Fertility Centre in California even gets requests to help couples have babies with specific traits. Thankfully, technology has not developed to such an extent yet. The new eugenics have not yet resorted to killing of newborn babies, but is getting close by

Three Information Technology Systems Assignment

Three Information Technology Systems - Assignment Example Being able to correlate information across multiple platforms creates a successful environment for combatting crime. Introduction In today’s age of information technology and in the various designs of database creations, members of law enforcement find that knowing how to utilize any number of research techniques will greatly assist in finding information on criminals being sought for various crimes. Criminal databases are also a valuable tool in determining what areas of a city, state or in the nation, require a more robust police presence in order to keep criminal activity down to a manageable level (Hunter & Barker 2011). As part of training for any police officer and for detectives conducting any type of criminal research activities, understanding how each database works and the search criteria required for each, is essential for success in finding and identifying specific people who may be involved in criminal behavior. Three database systems are discussed in this paper: the Integrated Automated Fingerprint Identification System (IAFIS), the National Crime Victimization Survey database (NCVS), and the Crime Mapping system (Cordner & Scarborough 2010). 1. There are a number of ways that these database systems are used by law enforcement agencies within a community policing program to help with keeping down criminal activity. It is important for every community to have some type of mapping system which can show what criminal activity has been taking place over various time periods. In many instances, the police department for any given city will most likely access state information in order to drill down to a city’s information criteria and subsequently, to fine-tune that information to a neighborhood or community (Mazerolle, Bellucci & Gajewski 2005). The state is the main point of access for any type of information concerning census data, land use data, Department of Motor Vehicles data, and any other data that would commonly be required by a state to maintain in some database. From the statewide access point, the city police department may choose to have a professional database designer come in to create a system that can access the state information and combine it with city information in order to be able to create specific pictures or maps of where crime has been more active, such as in number of robberies over a specified time period. This type of mapping is also useful in determining traffic problems that might occur in various spots in the community because of criteria concerning time of day and even the day of the week (Mazerolle, Bellucci & Gajewski 2005). In the case of the IAFIS system which plugs into a national database, the use of the system helps to identify criminals who may be traveling over different cities and even into different states while committing crimes along the way (FBI 20130. If a criminal has been picked up once along the way and been fingerprinted before being put in jail, when he gets out and commits more crimes, he is easily identified, apprehended and put back in jail. While some criminals have not been caught yet, their fingerprints at crime scenes will be retained and attached to the crime so that if ever apprehended, the crime will come up in the database and the criminal finally

Fast food sector Essay Example | Topics and Well Written Essays - 3500 words

Fast food sector - Essay Example Having taken advantage of the economic growth, the organization has expanded phenomenally and has presence in virtually every country in the world (Orji, 2005). Their business model too is unique as their restaurants are owned and operated by local people in the country of presence. In mature and developed markets, however, they have company-owned restaurants. The key to McDonald's success is the use of franchising. McDonald's however, has reached the saturation point in their home market – the US – and hence started looking for overseas opportunities. The growth in the US has been slow but in the other markets it is leading. There still exists high potential in the developing countries but they need to realign their strategies. McDonald's wanted to create a multi brand corporation and hence invested in other brands such as Piles Cafe, Boston Market, Pret a Manager (Orji, 2005). They also had a majority stake in had a majority stake in Chiptole Mexican Grill and owned D onatos Pizza for several years. Their idea was to offer healthier options and compete with the fast casual sector. McDonald's has been reeling under difficult times as the global economy worsens. Consumer lifestyles, preferences and tastes have changed along with the changed business environment. It experienced declining sales as consumers and investors moved away from the brand. Globalization appears to have impacted the standards and operations at McDonald's (Cuneen, 2008). These require a change in the marketing strategy of McDonald's in the UK. An environmental analysis would help evaluate the right marketing strategy under the circumstances that should be applied in the UK. 1.2 Environmental analysis 1.2.1 PESTLE analysis This helps scan the external environment and is the acronym for Political/Economic/ Social/Technological/Legal/Environmental – all of which are external to the organization. Political Currently the UK is facing a period of instability as there is no sig nificant popular support (Social Equality Party, 2010). The country is more divided than ever before. Economic According to Keynote the fast food sector was valued at ?9.3bn in 2007 which shows the market has increased during recession (Riley, 2010). Economic factors such as prices and income have an impact on consumer behavior. As the food prices rise the purchasing power declines and the price changes affect the composition of the food basket in the UK (Knowledge Scotland, 2009). Socio-cultural factors More than half the adults are heavier than recommended and this is particularly rising among the young adults (EMIS & PIP 2005). Tasty food in the UK can be found at any location at any time of the day or night. Most foods are high in calories and dense in energy. Food portion sizes have increased and there is a tendency to eat more. Physical activity levels have gone down and are considered as the major cause of obesity in the recent years. However, there have been growing concerns of obesity in the UK and consumers have become health conscious. The UK has a high number of immigrants and good habits differ across cultures. Each culture and society has its own set patterns of behavior and food preferences and cultures are not pervasive. Globalization has been unable to penetrate these set patterns and converge the food habits. Technological factors Fast food brands are using technology to target kids via games, videos and cartoons on their websites. They thus exploit the legal