sip on this
Posted by Dale Buss on November 11, 2013 03:23 PM
PepsiCo and Coca-Cola have been doubling down on emerging markets, despite feeling tremendous pressure to grow their business in developed regions such as the United States and Europe. And PepsiCo just made a massive US$5.5-billion commitment to expand its operations and sales in Mexico over the next seven years.
CEO Indra Nooyi announced that PepsiCo and its partners plan to double their current production capacity in India, to ramp up distribution infrastructure especially in rural markets, to boost its collaborative program with Indian farmers, and to continue to expand the range of foods and beverages in its current India portfolio of eight brands.
"India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo," Nooyi said in a statement. "We believe we've only scratched the surface of the long-term growth opportunities." In a press conference in New Delhi on Monday, Nooyi also couldn't resist a playful dig at her biggest competitor, telling reporters that the Pepsi brand is "more youthful" than rival Coca-Cola.Continue reading...
Posted by Barry Silverstein on October 18, 2013 02:58 PM
Maybe Steve Jobs was even more of a seer than people think. It was Jobs who had the vision to shape Apple into an upscale consumer brand that, in many ways, set the standard for both technology and design. In fact, Apple has become truly fashionable and a luxury/premium brand in its own right. Witness the apparent rejection of Apple's lower-end iPhone 5c by consumers.
The just-announced addition of Angela Ahrendts, the American CEO of British luxury brand Burberry, to Apple's senior management team in a move that will occur next year, may well be the exclamation point on Apple's evolution. Ahrendts will bring a deep understanding of the marriage between fashion and technology to her role. She also will bring the shine of a luxury brand that has been a fashion and digital innovator under her guidance, and another invaluable asset: her ability to turn around Burberry's business in Asia and particularly China, a market Apple craves.
For Ahrendts, who as the new SVP of retail and online stores becomes the first woman in Apple's upper echelon, it's an intriguing career move. Could it be that she stepped down to eventually step up? Business Insider speculates that "if Ahrendts fits into Apple's culture and does an excellent job running its retail business, she probably has a good chance to become the company's next CEO."
From Apple's perspective, says Gartner Research analyst Carolina Milanesi in a Computerworld interview, it's all about the brand: "I think Apple looked at Burberry and the challenges they had in the market, and saw her as the one that brought back that aspirational brand, and then grew it in places like China, Korea, and elsewhere. Those speak to the challenges Apple is having. Like Burberry, Apple has to deal with the fact that its brand is everywhere because of the iPhone, but they cannot run the risk that the brand is seen as cheap."Continue reading...
sip on this
Posted by Dale Buss on October 16, 2013 10:53 AM
Buffeted by what CEO Muhtar Kent called "headwinds" and aided by "tailwinds" around the world, Coca-Cola reported a good but not great third quarter and vowed once again to meet its target of doubling 2010 revenues by 2020.
Meanwhile, PepsiCo today reported a 1.5 percent revenue increase for the period while US beverage sales slid by 2 percent.
While much of the attention to the Coke brand these days is how marketers wrangle with the obesity issue, sales of the globe's leading soft-drink brand still grew 2 percent by volume during the period. About 70 percent of the company's sales are soft drinks.
Overall sales volumes including non-soda drinks such as teas and bottled waters grew by 2 percent in the United States. But it was emerging economies that gave Coca-Cola enough momentum to post a 4 percent rise in earnings per share for the period, in line with analysts' expectations.Continue reading...
Posted by Dale Buss on October 4, 2013 10:43 AM
Once, PowerBar was a pioneer of the nutrition-bar segment, a unique product that joined Silk soy milk and a handful of other far-sighted innovations as the harbingers of a whole new American better-for-you-food trend.
But now the brand is merely one of hundreds, nay thousands, of energy bars and other bar formats that take an entire aisle at some US supermarkets, and so Nestle has decided PowerBar isn't pulling its weight. The Swiss food giant reportedly is looking to sell PowerBar and many other "underperforming" units in a brand house cleaning that long has been urged upon it by advisers.
In many ways Nestle is a model of modern multinational brand management, having built and expanded powerful franchises in segments ranging from chocolate to water to baby food to coffee. Other industry CEOs point to Nestle as the paragon, a company they're trying to fashion theirs after.Continue reading...
Posted by Dale Buss on July 16, 2013 03:18 PM
The stakes for brands are ever-rising in India—both for multinational companies and the home-grown competitors that are attempting to rival them.
Nissan is the latest foreign brand to throw a spotlight on the crucial emerging market in India, today unveiling the Go five-door hatchback, its first model under the revived Datsun brand. Nissan CEO Carlos Ghosn revealed Go at an event in New Delhi as part of the company's push to target the growing middle classes in emerging markets, according to Bloomberg, saying the car will be sold for under $6,700 and will "contribute significantly" to the brand's plans for high-growth markets.
Datsun—the venerable marque that Nissan used decades ago and is reviving for this new effort in emerging markets—will have to overcome initial lack of brand recognition in India and elsewhere. And there's the prospect of competition from India's Tata Industrial Group, the company's most diverse and best-known industrial conglomerate, which happens to own the Jaguar and Land Rover brands.Continue reading...
Posted by Sheila Shayon on February 28, 2013 11:27 AM
In what seems like impeccable timing, Nestlé CEO Paul Bulcke delivered a sustainability-focused keynote at the annual City Food Lecture in the U.K., ultimately challenging the accusations made about the company in a damning Oxfam report earlier this week.
The speech, which focused on the escalating perils of water scarcity, outlined that fresh water overuse poses a serious environmental, political and social hazard. Water is an issue near and dear to his heart, as the Swiss company is the world's No. 3 producer of bottled water, and looking to expand in water-constrained markets such as China.
“It is anticipated that there will be up to 30% shortfalls in global cereal production by 2030 due to water scarcity,” he said. “This is a loss equivalent to the entire grain crops of India and the United States combined.” What's more, he added, “We could produce what we produce today with half the water we use.”
In his address, Bulcke cited his company’s reduction of water usage by a third with 1,200 agronomists working with Nestlé to better manage its water use. Bulcke also commented that consumer acceptance of misshapen fruit and vegetables is necessary to cut waste of food products, as well as spoke out against the fuel industry for using food crops to create biofuels.
Bulcke also took the opportunity to further address the horse meat crisis affecting retailers such as IKEA and manufacturers in Europe, a crisis that compelled Nestle to pull some food products off store shelves last week. “Widespread fraud is being committed by a few across Europe. I understand that many consumers and many of you in the industry feel misled, I feel the same. This should not happen, it is unforgivable. We have let our consumers down.”Continue reading...
Posted by Barry Silverstein on February 27, 2013 03:26 PM
We may live in an increasingly virtual world, but often it's what happens at live tech trade shows that sets the tone for what is to come. Such was the case with the flurry of major product announcements at January's Consumer Electronics Show (CES) in Las Vegas.
This week's Mobile World Congress (MWC13) in Barcelona, Spain has been just as interesting, albeit for different reasons. One couldn't help but notice, for example, Samsung everywhere and Apple nowhere. Coming off its recent glitzy Super Bowl campaign with Paul Rudd and Seth Rogen and Oscars ad campaign starring Tim Burton, Samsung had a dominant presence at MWC13, debuting the Galaxy Note 8.0 tablet as a competitor to the iPad Mini, touting its Android-powered Galaxy S III and Galaxy Note II smartphones and proclaiming that it would double tablet sales from a year ago.
Samsung also aligned itself with the show introduction of Intel's Tizen, a new mobile operating system expected to challenge Google's Android. This could potentially put Samsung, which will launch Tizen-based phones this summer, on a collision course with Google, since Samsung currently makes more Android-based devices than any other manufacturer.
Of course, collision courses are nothing new for Samsung, the Korean behemoth that leads the world in cellphones.Continue reading...
Posted by Mark J. Miller on January 29, 2013 02:04 PM
Reebok is expanding its push in India, with large marketing campaigns, new products and tie-ins to big national sports stars.
The move comes as analysts say India, with more than 1.2 billion people, is ripe for market expansion. The India market research firm RNCOS found that the “Indian sports apparel market was set for annual growth of around 34% during the 2010-14 period.”
Seems like it’s a good time for Reebok to capitalize, especially since another report found that 15- to 24-year-old Indians labeled Reebok owner Adidas “the nation’s second ‘most exciting’ brand behind soft drinks giant Coca-Colas.”Continue reading...