CASE 1: Flour & Pasta. 1) Considering F&P s increase in marketing expenses, what is expected to be its pasta value share¹ in 2009?

Transcription

1 CASE 1: Flur & Pasta 1) Cnsidering F&P s increase in marketing expenses, what is expected t be its pasta value share¹ in 2009? 1 Value share = Revenues f a certain brand r cmpany (R$M) / Sum f revenues f all the players in the market (R$M) (a) 18% (b) 19% (c) 20% (d) 23%

2 2) Cnsidering F&P s brand psitining in the sutheast regin, in the pasta categry, it is crrect t say that (a) In rder t gain market leadership, F&P shuld fcus n its F&P s red brand, s as t cnquer Pasta di Nna s triclr, Pasta di Napli s triclri, and Pasta di Rma s triclri market shares. (b) Even thugh F&P desn t wn the brand which sells the mst in vlume (Pasta di Mamma triclri), it s psitined as market leader in the regin. (c) Pasta di Puglia s triclri and Pasta di Milan s triclri present n threat t F&P s market psitin, as their lw prices indicate they are lw quality prducts. (d) F&P shuld reduce F&P s blue s price in rder t cmpete against Pasta di Puglia s triclri and Pasta di Milan s triclri, and it shuld increase F&P s green s price in rder t cmpete against Pasta di Mamma triclri.

3 3) If F&P managed t merge tw f its pasta brands in the sutheast regin, blue and green, int a new brand, hw much vlume wuld it cmprise? (Units: k tn, 2008) (a) 70 (b) 80 (c) 180 (d) 500

4 4) Cnsidering the flur categry in the sutheast regin, what is F&P s price index² and value share (respectively) in 2008? 2 Price index = Price f a certain brand r cmpany (R$/kg) / Average price f the whle market (R$/kg) (a) 117%, 35% (b) 117%, 45% (c) 107%, 41% (d) 107%, 35%

5 5) By lking at the evlutin f the flur market ver time, what is crrect t say? (a) F&P shuld lwer its prices in rder t gain market share, just like Great flur did. (b) Even thugh Gd flur lst vlume share3, its vlume sld (in k tn) hasn t decreased. (c) The cmpany which decreased prices gained vlume share ver the ne which increased prices the mst. (d) The flur market grws quickly, s the nly way fr F&P t gain market share is by means f an acquisitin f a cmpetitr.

6 6) What was F&P s RMS in the flur categry, in 2006 and 2008(respectively)? RMS = relative market share If cmpany is market leader RMS = cmpany s value share / 2nd player s value share If cmpany isn t market leader RMS = cmpany s value share / leader s value share Nte: Value share = Revenues f a certain brand r cmpany (R$M) / Sum f revenues f all the players in the market (R$M) (a) 2,76 and 3,69 (b) 2,76 and 1,71 (c) 1,84 and 3,69 (d) 1,84 and 1,71

7 7) Cnsidering the expected market behavir f cake mixes, and F&P s current prtfli, which strategy wuld yu recmmend them? (a) F&P shuld abandn flur, as it is a shrinking market, and fcus slely in the rapidly grwing cake mixes. (b) F&P shuld invest mre in ready-t- eat cakes than it des in flur and cake mixes, as they re the step the market shuld eventually take beynd cake mixes. (c) F&P shuld invest in flur just enugh s as t retain its market leadership, but fcus n further develping its cake mix categry. (d) F&P shuld invest heavily in flur R&D, in rder t prevent its market frm shrinking.

8 CASE 2: TravelC 8) Based n the estimate f TravelC revenues and margins, what is crrect t say? (a) In terms f %, grss margins were the same in Y1 and Y3. (b) Grss margins decreased 2% basis pints between Y1 and Y2, mainly due t lwer penetratin f Dmestic and LngHaul packages. (c) TravelC s ttal sales are increasing apprximately 5% per year n average between Y1 and Y5. Hwever, ttal grss margins have nt changed. (d) TravelC reached highest grss margins (in %) in Y1.

9 9) What we see here is an increasing acceptance f sales n internet. Peple frm all segments that we target are mre willing t use it CEO TravelC Opening new stres is imprtant fr lw incme peple Academic researcher T capture market share in Ec-Turism and Grups it s really imprtant t have a strng stre netwrk. On ther hand, train tickets sell very well thrugh the internet channel, as it is a standardized prduct, just like ur current nes Marketing Directr TravelC TravelC has limited resurces t develp new prducts and sales channels. Based n qutes and ther prvided charts, what is crrect t say? (a) TravelC shuld fcus n entering Ec Turism market, as it shuld increase by 29% per year frm Y5 t Y7. Simultaneusly, TravelC must develp its website, due t lw cst and high acceptance f this sales channel. (b) TravelC shuld pursue a fasting grwing netwrk f stres because it is the nly way t capture clients f Grup Travel. (c) TravelC shuld enter n Train Tickets market, as it has best fit with current prducts and is the largest ne. Simultaneusly, TravelC must develp its website, due t lw cst and high acceptance f this sales channel. Mrever, develping Train Tickets is perfect aligned with strategy t develp the website. (d) Staying fcused n the cre business (dmestic and prm-packs) is the best strategy fr TravelC as they ffer the highest margins amng all cited prducts.

10 10) What is TravelC s year 5 market share in the dmestic packages market, cnsidering its RMS? Please select the results that is clsest RMS = relative market share If cmpany is market leader à RMS = cmpany s market share / secnd player s market share If cmpany isn t market leader à RMS = cmpany s market share / leader s market share ROS = Return n sales = Net Incme (befre interest and tax) / Sales (a) 0,6 (b) 30% (c) 20% (d) 40%

11 11) What is pssible t cnclude abut TravelC s prduct prtfli? RMS = relative market share If cmpany is market leader à RMS = cmpany s market share / secnd player s market share If cmpany isn t market leader à RMS = cmpany s market share / leader s (a)travelc shuld get ut f Bus Packages and fcus effrts n gaining market share n mre grwth-prmising prducts such as Cruises and LngHaul packages. (b) TravelC shuld get ut f Cruises and fcus its effrts n mre grwth-prmising prducts such as Dmestic Packages and Bus Packages. (c) TravelC shuld get ut f Air Tickets and Bus Packages, due t its lw market share in these segments. (d) Lng Haul packages are the best investment ptin since it is where TravelC has its highest market share.

12 12) What best describe the situatin shwn n graph 11? (a) Number f Lng Haul packages sld always increases when the number f stres des. (b) Between Y3 and Y5, cnversin rate f USD (American Dllars) against EUR (eur) decreased by ~40%, whilst package sales increased by 20% as a cnsequence f drp in stre prductivity (average sales per stre). (c) The depreciatin f USD against EUR in last 2 years explains mst f grwth in sales in Y4 and Y5. (d) Sales increased by 85% between Y1 and Y5, prbably reflecting appreciatin f USD, althugh stre prductivity increased nly by ~7%.

13 13) It is pssible t segment the market in three custmer grups. Travel peratrs ffer prduct lines fr all segments. After analyzing the market segmentatin and the prduct lines ffered by the main players in the market, which is the best alternative? (a) Flaming Turs is a gd acquisitin ptin due t its strng psitin in the prmtinal packages market. (b) TravelC shuld merge with Flaming in rder t imprve its presence in the Luxury segment. (c) Super Hlidays is a gd acquisitin ptin due t its strng psitin in the Mid-Price market. (d) TravelC shuld merge with Cl Travel t increase presence in the Ecnmic segment.

14 14) Based n market segmentatin and grwth, it is crrect t say? (a)ttal market grwth is 11% in Y6 and 17% in Y10. This fast grwing rate is abut t benefit mre TravelC, as it has the largest market share in all segments. (b) Flaming has the largest market share in the Luxury segment, which is ging t be the largest market in Y10, clsely fllwed by Mid-Price. (c) Cnsidering there is n change in market share psitin, Flaming is ging t benefit mre frm current grwth trends. (d) Cnsidering all segments tgether, the grup f Others is ging t increase its relevance in the market due t a significant presence in all segments.

15 CEO s speech: TravelC has had a very strng fcus n prm-packs. These packages have a strnger appeal amng the ecnmic segment, due t lw prices. Prduct Line Directr Speech: We are leaders in the Prm Packs market, but that has nt made us leaders in prfitability! Maybe it s time fr us t rethink ur custmer strategy Specialist 1 speech: The luxury segment is the ne where the custmer requires mre flexibility, and therefre mre expensive prducts, such as greater chice f htels and flights, better lcatins and mre services available. Specialist 2 speech: Luxury packages may have higher csts, but at the same time ffer higher margins, since custmers are less price sensitive 15) After listening t the CEO and the specialists, what can yu say? (a) TravelC shuld fcus n keeping leadership psitin in the Mid-Price segment, even thugh Nice Travel has a very strng psitin amng these custmers. (b) In rder t imprve prfitability, TravelC shuld fcus n increasing its participatin in the luxury segment, where margins are higher, and try t cut csts in ecnmic and midprice segments. (c) In rder t imprve market share, TravelC shuld increase prduct ffer t all custmer segments, trying t gain market share in all segments at the same time. (d) Since it is the market leader in Prm Packs, TravelC shuld fcus its effrts n increasing its prduct ffer t the Ecnmic segment.

16 ANSWER KEY: Questin Answer Questin Answer 1 D 9 B 2 C 10 C 3 E 11 D 4 C 12 C 5 B 13 B 6 E 14 E 7 E 15 B 8 A