Rocket Flight free essay sample

Rocket FlightWhat is a rocket?A rocket is a missile or aircraft that produces thrust by burning fuel and using propellants. It is different from a jet engine as it stores all of the fuel it needs, whereas jets and aeroplanes need oxygen from air to work. This is why rockets can travel out of the earths atmosphere whereas jets cannot. Rockets have a variety of purposes, including:Space explorationLaunching of satellitesNuclear warfare(Only recently) Commercial cargo transportation and private space toursHow does a rocket fly?Rockets use Isaac Newtons 3rd law of motion to fly; For every action there is an equal and opposite reaction. The rocket ignites its fuel, and it all pushes downwards, as the opposite reaction pushes the rocket upwards. This is known as thrust. Their slim, aerodynamic design and incredible fuel capacity allows rockets to travel at great speeds for a sustained period of time. We will write a custom essay sample on Rocket Flight or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page What is the difference between solid fuel and liquid fuel boosters? Give examples of both and list what they are used for.Both solid and liquid fuel is used in large rockets, however at different times of the flight. Solid fuel, typically a mixture of oxidisers and aluminium oxide, begins as a liquid and is poured into the boosters. Over a few days it hardens and is ready to be used. The advantages of solid fuel is that it is cheaper than its liquid counterpart and provides greater thrust, however it cannot be controlled; once it is ignited, it cant be stopped. Thus, NASA, and the ESA use solid fuel to do the majority of the work into getting rockets into orbit.However, if solid fuel was to be used as the sole propellant, the rocket and payload would be torn to shreds by the exceptional speed. So instead they combine liquid fuel and typically liquid oxygen to propel the rocket during the later stages of the flight. This can be easily throttled, allowing the rockets speed to be controlled.Who was Wernher von Braun? Write a short biography of his life.Dr Wernher von Braun was a highly influential rocket developer and space explorer in the 20th century. In his early years he was fascinated by the possibilities of space exploration, and as a result studied calculus and trigonometry in order to understand the physics of rockets. After studying engineering at the University of Berlin, he was employed by the German army in 1932, developing liquid fuelled rockets. Von Brauns team created the V-2 ballistic missile, the worlds first long range guided military missile. Measuring at over fourteen metres tall and weighing an enormous twelve tons, it was first launched in 1942 during the Second World War.Knowing the Allies were on the approaching the rocket complex, von Braun moved south to Bavaria before he was eventually captured by the Americans. For fifteen years von Braun worked for the U.S. army in Texas, their military wanting ballistic missiles for themselves. In 1950, his team of 125 was moved to Alabama and designed the Jupiter and Redstone ballistic missiles, as well as three launch vehicles (rockets used to send a payload into space). The Jupiter C, designed by von Brauns team, was the first rocket to carry a satellite into space.From then on, von Braun went on to write several books and articles based on space exploration, becoming a prominent advocate for the subject. He became NASAs director of the Marshall Space Flight Centre, and died in 1977. Ultimately, Wernher von Braun had a considerable influence on the design, uses and application of rockets in his time, and laid the groundwork for space exploration in the future.Why do you think the scientists were taken by the allies after WW2?The scientists were obviously very knowledgeable and skilful in creating rockets for warfare, and the Allies wanted these scientists to create rockets for themselves. From the Allies perspective, the scientists were valuable assets for the war, and the Allies didnt want to be left behind in the creation of lethal rockets. What sort of fuel does NASA use to launch their rockets?NASA uses both solid and liquid fuel to propel their rockets into orbit. The most common solid propellant NASA uses, according to NASAs Chief of exploration vehicle officer Bryan K Smith, is a mix of Ammonium Perchlorate and Powdered Aluminium, pre-mixed to form a rubber like substance stored in the boosters. The most effective liquid propellant NASA use is liquid hydrogen and liquid oxygen that is mixed in flight when needed.What is a payload? Give an example.The payload of a rocket is dependant on the rockets mission, however in general the payload of a rocket is the portion the completes the purpose of the rocket. For example, the most common payload of a rocket is a satellite. Exploration rockets payloads can be humans or various recording equipment, whereas the payload of an offensive rocket would be its nuclear warhead. Who was the first man in space?Not to be confused with the first man on the moon, Neil Armstrong, the first person in space was cosmonaut Yuri Gagarin. He entered space on April 12th 1961, and his 108 minute flight earned him the admirable title of first man in space. Opinion: Commercial space flightI believe that space travel will one day become as common as airline travel is today. Im convinced, however, that the true future of space travel does not lie with government agencies NASA is still obsessed with the idea that the primary purpose of the space program is science but real progress will come from private companies competing to provide the ultimate adventure ride, and NASA will receive the trickle-down benefits.- BUZZ ALDRINIts being labelled the space race of the 21st century, as private businesses are in competition to introduce the world to commercial space flight. Companies such as Virgin Galactic, Blue Origins and SpaceX are currently trialling the possibilities of laun ching cost effective rockets for private purposes, however there is a cloud of doubt over its impact. The innovation can allow high paying customers to experience space first hand, as well as privately transport cargo to and from the international space station. SpaceX have the ultimate goal is to be able to colonise other planets, however possible environmental and martial consequences may shadow the commercial benefits.CEO of Virgin Galactic Richard Branson has announced plans to send tourists into space this year. In 2017 he said I think Id be very disappointed if were not into space with a test flight by the end of the year and Im not into space myself next year. His space test flights have produced groundbreaking results since, and with around 500 potential customers reserving a spot, it appears private space tourism could become a new, lucrative industry. Despite a hefty cost of $350,000 AUD per person, this business has potential to attract major tourism while allowing the lucky few to experience outer space, benefiting all involved. It seems unlikely that the price for orbital travel will remain that high, and as it decreases, the demand and market will increase. A 2013 report funded by the Federal Aviation and Administration Office * predicted that the space tourism industry, with sufficient public support, could eclipse 1. 6 billion dollars in revenue in the next ten years (as of 2012). Ultimately, the prospect of the future space tourism industry is capable of reaping many financial gains and overall benefit the many involved.*(http://www.nss.org/transportation/Suborbital_Reusable_Vehicles_A_10_Year_Forecast_of_Market_Demand.pdf)While cost effective suborbital travel opens possibilities for tourism, it simultaneously could deem a wide range of offensive martial options feasible. In the past, high launch costs have restricted use of rockets for military purposes. In the words of Todd Harrison, a defense budget analyst at the Center for Strategic and International Studies in Washington; One of the reasons we have not weaponized space before now is that it did not make sense to do so, it was too expensive relative to the terrestrial alternatives, [and] all the new military space missions that could become cost-feasible to the US could become cost-feasible for other countries, and create a lot of challenges. As the lead author of a recent report on low cost space access, it outlines that rockets are capable of launching missiles at satellites or targets on the ground, possibly with nuclear warheads. The rockets can then be more or less reused and the process can be repeated. Offensive missiles can be intercepted and troops and supplies could even be transported to anywhere in the world within 45 minutes. These offensive options combined with recent government instability across the globe is a recipe for disaster.Our aspirational goal is to send our first cargo mission to Mars in 2022 †¦ and eventually a self sustaining civilisation SpaceX Cheaper space exploration and payload launches opens the door towards colonising other planets, in particular Mars. The more cost effective rockets become, the more exploring and testing can be done with the ultimate goal to create a sustainable civilisation. Transportation of cargo would become significantly less expensive, and low overall cost allows the process to be performed much quicker. The exciting prospect of living on another planet has a range of advantages, including the potential for groundbreaking scientific discoveries, diplomatic rewards and another home for human life if needed in the unpredictable future. Most of all it is a challenge, what we, as humans, thrive on. Reaching the pinnacle of human achievement has always been our focus. Commercial companies are inching closer to that dream every day, progressing our society as a whole.With the increase of launches that cost effective rockets bring, long term damage to the environment becomes an alarming consequence. Rocket engines emit reactive gases that cause ozone particles to break apart. The particles of aluminium oxide and soot that are also released act as a catalyst, increasing the rate in which the ozone is destroyed. A report on the topic in 2009 revealed that rockets are responsible for approximately 1% of ozone depletion, however with the new space race fast approaching, and the lucrative business of commercial space flight, it is predicted that; If left unregulated, rocket launches by the year 2050 could result in more destruction that was ever caused by CFCs (Chlorofluorocarbons, formerly used in aerosols). Prof. Darin Toohey of Colorado Boulders oceanic and atmospheric department. This isnt urgent, but if we wait 30 years it will be.Ultimately, cost effective space flight opens the door to a wide range of possibilities, whether it be in space tourism, scientific exploration or the goal of colonisation on other planets. However, it also allows the abuse of such technology, for warfare. As predicted, the increase of rocket launches could damage the environment greatly in the future, so there are many pros and cons to be considered in relation to cost effective rockets.Bibliography Csis-prod.s3.amazonaws.com. (2018). [online] Available at: https://csis-prod. s3.amazonaws.com/s3fs-public/publication/170316_Harrison_UltraLowCostAccess_Web.pdf?LPQ6EI200hsZglqXWA8bYrdWflQ4ucPJ [Accessed 13 Feb. 2018].Dann, F. (2016). Why the U.S. Government Brought Nazi Scientists to America After World War II. [online] Smithsonian. Available at: https://www.smithsonianmag.com/smart-news/why-us-government-brought-nazi-scientists-america-after-world-war-ii-180961110/ [Accessed 8 Feb. 2018].Davies, A. (2012). Wealthy Adventurers Could Turn Space Travel Into A $1.6 Billion Industry. [online] Business Insider Australia. Available at: https://www. businessinsider.com.au/space-tourism-to-generate-16-billion-2012-10?r=US [Accessed 18 Feb. 2018].Encyclopedia.com. (2018). Liquid vs. Solid Fuels Dictionary definition of Liquid vs. Solid Fuels | Encyclopedia.com: FREE online dictionary. [online] Available at: http://www.encyclopedia.com/science/news-wires-white-papers-and-books/liquid-vs-solid-fuels [Accessed 8 Feb. 2018].European Space Agency. (2018). Solid and liquid fuel rockets. [online] Available at: http://m.esa.int/Education/Solid_and_liquid_fuel_rockets4 [Accessed 8 Feb. 2018].Extreme Machines Rockets. (2015). [Video] Available at: https://m.youtube.com/watch?v=cPDjykCXUnw.Fernholz, T. (2018). Reusable rockets could disrupt the space industry, and not always in a good way. [online] Quartz. Available at: https://qz.com/944145/reusable-rockets-could-disrupt-the-space-industry-and-not-always-in-a-good-way/ [Accessed 27 Feb. 2018].Forum. nasaspaceflight.com. (2018). Finally, Liquid or solid propellant engine?!. [online] Available at: https://forum.nasaspaceflight.com/index. php?topic=23243.0[Accessed 8 Feb. 2018].I2.wp.com. (2018). [online] Available at: https://i2.wp.com/www.7continents5oceans.com/wp-content/uploads/2015/06/Effects-of-ozone-layer-depletion.jpg?resize=553,370 [Accessed 8 Feb. 2018]. Mail Online. (2017). Virgin Galactic to be open for business in 2018 with flights THIS year. [online] Available at: http://www.dailymail.co.uk/sciencetech/article-4374866/Richard-Branson-s-space-plans-Virgin-Galactic-open-2018. html[Accessed 17 Feb. 2018].Minnesota Pollution Control Agency. (2009). Chlorofluorocarbons (CFCs) and hydrofluorocarbons (HFCs). [online] Available at: https://www.pca. state.mn.us/air/chlorofluorocarbons-cfcs-and-hydrofluorocarbons-hfcs [Accessed 8 Feb. 2018].NASA. (2018). Biography of Wernher Von Braun. [online] Available at: https://www.nasa.gov/centers/marshall/history/vonbraun/bio.html [Accessed 8 Feb. 2018].NASA. (2018). Space Shuttle and International Space Station. [online] Available at: https://www.nasa.gov/centers/kennedy/about/information/shuttle_faq.html [Accessed 8 Feb. 2018].NASA. (2018). What Is a Rocket?. [online] Available at: https://www.nasa.gov/audience/forstudents/5-8/features/nasa-knows/what-is-a-rocket-58.html [Accessed 8 Feb. 2018]. Rastogi, N. (2018). What impact do rockets have on the environment?. [online] Slate Magazine. Available at: http://www.slate.com/articles/health_and_science/the_green_lantern/2009/11/dirty_rockets. html [Accessed 8 Feb. 2018].Redcolony.com. (2018). Why Colonize Mars? Red Colony. [online] Available at: http://www. redcolony.com/features.php?name=whycolonizemars [Accessed 2 Mar. 2018].ScienceDaily. (2018). Rocket Launches May Need Regulation To Prevent Ozone Depletion, Says Study. [online] Available at: https://www.sciencedaily.com/releases/2009/03/090331153014.htm [Accessed 8 Feb. 2018].Scientific American. (2018). What kind of fuel do rockets use and how does it give them enough power to get into space?. [online] Available at: https://www.scientificamerican.com/article/what-kind-of-fuel-do-rock/ [Accessed 8 Feb. 2018].Space.com. (2011). What the Next 50 Years Hold for Human Spaceflight. [online] Available at: https://www.space.com/11364-human-space-exploration-future-50-years-spaceflight.html [Accessed 26 Feb. 2018]. Space.com. (2012). Yuri Gagarin: First Man in Space | The Greatest Moments in Flight. [online] Available at: https://www.space.com/16159-first-man-in-space. html [Accessed 8 Feb. 2018].Space.com. (2017). SpaceX: First Private Flights to Space Station. [online] Available at: https://www. space.com/18853-spacex.html [Accessed 26 Feb. 2018].Space.com. (2018). Commercial Space Travel May Bring Science Benefits, Advocates Say. [online] Available at: https://www.space.com/16228-nasa-commercial-human-spaceflight-benefits.html [Accessed 1 Mar. 2018].Space. com. (2018). Virgin Galactic Aims to Fly Space Tourists in 2018, CEO Says. [online] Available at: https://www.space.com/36654-virgin-galactic-fly-space-tourists-2018.html [Accessed 17 Feb. 2018].Spaceflightsystems.grc.nasa.gov. (2018). Payload Systems. [online] Available at: https://spaceflightsystems.grc.nasa.gov/education/rocket/payload.html [Accessed 8 Feb. 2018].Spacefuture. com. (2012). Space Future The Economic Benefits of Space Tourism. [online] Available at: http://www.spacefuture.com/archive/the_economic_benefits_of_space_tourism.shtml [Accessed 18 Feb. 2018].SpaceX. (2018). Company. [online] Available at: http://www.spacex.com/about [Accessed 1 Mar. 2018].Suborbital Reusable Vehicles: A 10-Year Forecast of Market Demand. (2012). [ebook] Florida, p.13. Available at: http://www.nss.org/transportation/Suborbital_Reusable_Vehicles_A_10_Year_Forecast_of_Market_Demand.pdf.

Advertisement and Promotion in Business The WritePass Journal

Advertisement and Promotion in Business Abstract Advertisement and Promotion in Business ). With the ongoing increase in competition across all industries, companies that fail to advertise or promote their products and services risk losing their competitive edge regardless of how proper the other elements of the marketing mix are (Reynolds Lancaste, 2013). This paper covers different issues of advertisement and promotion. These include the marketing communications’ scope and below the line advertisement approaches that can be used to promote Pringles, one of their products. It also designs a plan for an integrated promotional strategy for Pringles. Task 1 – Scope of Marketing Communications 1. Explain the communication process that applies to advertising and promotion. Communication in advertisement and promotion aims to ensure that that the messages that businesses intend to pass to their consumers are effectively relayed (Shimp Andrews, 2013). There are different steps through which these messages undergo before arriving to their target audiences. In promotion and advertisement, the sender – in this case, the advertising company – encodes the message and relays it through a transmission device (Wharton, 2013). Encoding is the creative creation of cues that can either be verbal or non-verbal that will pass the intended message to customers in the most effective manner and also attract the highest possible attention among the target customers (Reynolds Lancaste, 2013). After the message has been encoded, ideal transmission devices or avenues are used to pass the message (Wharton, 2013). With the different customer segments being targeted by companies, it is important to select the most ideal avenue through which the advertisement can be passed (Pride, 2013). The message is then decoded by the receiver, where it will trigger different actions in response to the advertisement, which include making purchases of the advertised products or services (Reynolds Lancaste, 2013). Whereas companies expect the communication processes of advertisements to lack barriers, there are several that may limit the attainment of the intended advertisement objectives (Wharton, 2013). One of these is the presence of many other adverts by competing companies that may divide the attention of target consumers this is mainly referred to as clutter (Kaser, 2012). 2. Explain the organisation of the advertising and promotions industry. The advertising and promotions industry comprises of different entities. These include advertisers, advertising agencies, media organizations and external facilitators (Friedlein, 2014). The roles played by all these parties contribute towards the success of the industry. To ensure effectiveness of this industry, different countries have different approaches of managing these involved parties (Oguinn et al., 2011). In the United Kingdom and Europe, there are different bodies that are involved in the running of the industry. These include the European Association of Communications Agencies (EACA), and the Promotional Marketing Council (PMC) (Warc, 2014). EACA represents media agency associations and full-service advertising across Europe (EACA, 2014). It is based in Brussels, Belgium, and focuses on the promotion for responsible effective and honest advertisement. The organisation also promotes high levels of professionalism and fosters close cooperation among different advertisers, a gencies and media outlets in Europe. PMC, on the other hand, represents the sales promotion industry. Some of the parties represented include suppliers, clients and agencies across several countries in Europe (Warc, 2014). 3. Assess how promotion is regulated. Regulation involves the creation or certain rules and regulations to govern different activities in advertisement and promotion. In the United Kingdom, an advertising self-regulatory system for non-broadcast advertising was set up in UK in 1961. This step was taken to ensure that advertisements are responsible and achieve the purpose of making customers aware of products and their repurchase of the products. The UK regulates the promotion industry by using a combination of practice and legislation codes (Advertising Standards Authority, 2014). There are two regulatory committees that create, revise and monitor advertising codes. These are the Broadcast Committee of Advertising Practice (BCAP) and the Committee of Advertising Practice (CAP). The BCAP code creates broadcast advertising rules while CAP creates rules for non-broadcasting advertising, direct marketing and sales promotion (Farrell Gordon, 2012). These rules are enforced by the Advertising Standards Authority (ASA). With the changes that are always taking place in advertising, these rules are regularly revised to increase effectiveness (Kaser, 2012). However, keeping up with this pace is quite challenging because of the increase in advertisement avenues that has been made possible by technological advancements. As a result, increasing numbers of customers are falling prey to advertisers that advertise inexistent or poor quality products (Cho et al., 2014). 4. Examine current trends in advertising and promotion, including the impact of ICT. The current trends in advertising and promotion have majorly been influenced by the increase in the use of the internet and social networking among target customers, which has largely been as a result of ICT development (Friedlein, 2014). There are various internet related trends in product advertising and promotion. These trends include; social media, online display advertising and mobile advertising. Advertisements on the social media, such as Facebook and Twitter, are on the rise and are referred to as sponsored content (Seth Kapoor, 2014). Companies are taking advantage of the growing number of people using these avenues because in total, there are approximately 2 billion people signed up to different social media platforms (Tuten Solomon, 2012). Online display marketing is on the rise, and involves the advertisement of company websites on other websites that target consumers frequently use (Kaser, 2012). According to Persaud and Azhar (2012), an increase in the use of smartpho nes has also given rise to internet mobile advertising. This is where advertisers reach consumers personally through platforms, such as social media or sending links to company websites, in the form of text messages (Persaud Azhar, 2012). Whereas these developments provide a convenience of reaching a wide range of clients in a short time and on a smaller budget, there are also different associated demerits (Friedlein, 2014). One of these is the information risk that customers and companies may be prone to because of hacking (Cho et al., 2014). Social media has been regarded by some researchers as one of the fastest avenues through which information passes. Thus, any mistake by a company that may tarnish its reputation can be detrimental to its brand (Tuten Solomon, 2012). Task 3: Primary techniques of below-the-line technique of sales promotion 1. Explain primary techniques of below-the-line promotion and develop a BTL campaign for the brand, â€Å"Pringles† Below-the-line promotion Below-the line advertisement is a promotional strategy that tends to use other mediums apart from the typical ones like the internet, broadcast, print and billboards (Kaser, 2012). Many companies in the present-day business environment utilize this strategy alongside above-the-line and through-the-line advertisement (Reynolds Lancaste, 2013). One of the main attributes of this approach to advertisement is that it is less expensive. However, many companies combine this with above-the-line promotions so as to maintain a better market position, below-the-line promotion being just as complement (Gautam, 2013). Several below-the-line advertisement techniques are discussed hereunder. Field marketing or promotion: It is a process through which salespeople target customers on a one-on-one basis with the aim of promoting certain products and services (Stone Desmond, 2007). One of the advantages of this approach is that it provides customers with a close interaction with the product being promoted and the salesmen. However, this is time consuming and some customers may not be quite welcoming to the salespeople (Sigala, 2010). The use of coupons: this below the line approach to promotion involves handing coupons to prospective purchasers of commodities and offering incentives or discounts to attract customers, especially those who are price-sensitive (Wharton, 2013). Given that such approaches often offer product at reduced prices for a short duration, there is always a risk of reduced sales when the company resumes its original prices (Kumar Rajan, 2012). Loyalty programs: These are packages that offer rewards to the frequent buyers of commodities due to their loyalty to the retail outlets (Grewal et al., 2011). Such programs are common in the airline industry, where frequent flyers of a given airline numbering a specified number of flights are awarded for their loyalty in different ways, which may also include free flights. These programs are however more ideal for customers with easy accessibility to the company products (Kaser, 2012). A below-the-line campaign for Pringles Pringles is a potato and wheat manufactured snack owned and run under the Kellogg Company (Pringles, 2014). Below-the-line advertisement can be used to compliment the current promotional strategies used. One of the below-the-line approaches that can be used to market Pringles is the field promotion or field marketing approach. To effectively implement this promotional strategy, it is vital for the company to recruit salespeople that have the experience and skills needed to enable them convince people they have never met before to choose the Pringles over competing products in the market (Kaser, 2012). Small samples ought to be distributed for free or be sold at a lower price. Considering that the company mainly targets teenagers and students (Gillespie Hennessey, 2010), it is advisable for the company to use younger salespeople who are more aware of how to approach and appeal to teenagers. The most ideal places that promoters of this product can target are those with high population of teenagers, like schools, colleges or recreational parks. Though this marketing approach provides an excellent avenue for building a relationship between the target customers and the brand, companies have to invest heavily in training salespeople or promoters to enable them deal with customers of diverse tastes and backgroun ds (Sigala, 2010). 2. Evaluate other techniques that can also be used in this BTL campaign. Apart from the above below-the-line approach that can be used by Pringles, there are several other methods that may be adopted to boost sales and promote the product. They are examined below. Pringles can use the Intercept method, where trained sales personnel are positioned at retail outlets besides the shelves holding Pringles in retail stores and supermarkets (Stone Desmond, 2007). Their main role is to persuade incoming buyers into the stores to purchase Pringles by highlighting their advantages over other competing products. Whereas this approach can increase the sales for the company, it has been criticized for causing impulse buying among customers (Pride, 2013). Sponsorship is also an ideal below the line promotional strategy that can be used by Pringles. This is whereby the company supports events and activities through provision of funds and other resources that are valuable to the success of the event (Woisetschlger Michaelis, 2012). For Pringles, this strategy can be implemented by sponsoring sports for schools and youth concerts. Awareness of the company or products can be increased by ensuring by printing T-Shirts, caps or any other apparel to be worn by those attending the event. Even with this convenience that the strategy offers to customers, it can be quite cost intensive for the company depending on the size or magnitude of the event being sponsored (Lee et al., 2012). This may have an adverse impact on the company’s return on investment. Task 4: Plan Integrated Promotional Strategies 1. Follow an appropriate process for the formulation of a budget for this integrated promotional strategy An integrated promotional strategy refers to an approach to promotion where a company uses different avenues to and tools to increase the awareness of products (Kaser, 2012). This section presents a plan for a promotional strategy that can be used to market Pringles. Even with the current success that it enjoys across the markets that it operates (Gillespie Hennessey, 2010), there is still a need for the company to penetrate more in the market and further increase its market share. To implement a successful promotional strategy, it is vital for the company to identify the resources or activities that will be involved. After they are identified, the appropriate budgetary allocation will be done to facilitate the strategy (Reynolds Lancaste, 2013). The avenues that will be used in this promotion strategy are TV commercials, billboards and online advertisement through social media outlets. The budget is summarized as below. Promotional Techniques Budget allocation TV commercials  £1 million Billboards  £100,000 Social media promotion YouTube video advertisements  £50,000 Facebook  £50,000 Twitter  £50,000 Total  £1.25 million    23: Carry out the development of a promotional plan for the Pringles and plan the integration of promotional techniques into the promotional strategy for Pringles The table above represents the promotional techniques that will be used in the promotion of Pringles. TV commercials will be used by airing advertisements of the product on channels that air programs that are mostly viewed by the company’s target customers, who are teenagers and the youth (Saxena, 2010). The most ideal channels on which to air these advertisements are music or sports channels. Billboards will be effective if they are located in areas that are densely populated and are located close to outlets of the products. With an increasing number of people who have signed up on Facebook and Twitter social networks, advertising products on these sites also increases their visibility among the target audience (Tuten Solomon, 2012). It also enables the company to actively engage with the customers that it is targeting. Thus, it will be imperative for Pringles to consider utilizing these avenues for promotion. 4. Appropriate techniques for measuring campaign effectiveness There are different approaches that can be used by companies in measuring the effectiveness of their promotional campaigns. One of these is the amount of feedback from customers. This is usually mainly in form of inquiries through different avenues about the product being marketed (Pride, 2013). When inquiries are high, it means that the advertisement strategy was effective, and vice versa. Another approach that can be used is the estimation of sales prior to and after the launch of the promotional campaign or the return on investment (ROI) (Kaser, 2012). Successful promotional campaigns ought to result in an increase in sales levels of the company and create revenues that surpass the investment that was put in the promotional activity. For social media advertisements, tools such as SentiStrength can be used to assess the reception of consumers to the advertisements. SentiStrenth is a sentiment measuring tool that evaluates the level of positivity or negativity of short texts that ar e mainly used in commenting on social media sites (SentiStrength, 2014). Conclusion Advertisement and promotion are vital components of the marketing mix. Some of the roles that they play include increasing of awareness among target customers about a company’s products and attracting new customers. This paper has addressed different issues that relate to this component of marketing. Under the scope of marketing communications, the paper has explained how the communication works process in promotion. It has also discussed how the organisation and regulation of the advertisement industry in the United Kingdom. The concept of below-the-line advertisement and an integrated promotional strategy that can be used to market Pringles have also been presented. For companies that intend to maintain their competitiveness in the market and attract a wide range of customers, it s vital for them to ensure that their promotional strategies are relevant to their target audiences. Whereas this paper has provided an in-depth understanding on the concepts of advertising and prom otion, in future, primary research can be incorporated, with members of the marketing department and a section of its target customers as respondents. References Advertising Standards Authority, 2014. About Regulation. [Online] Available at: asa.org.uk/About-ASA/About-regulation.aspx [Accessed May 2014]. Cho, S., Huh, J. Faber, R.J., 2014. The influence of sender trust and advertiser trust on multistage effects of viral advertising. Journal of Advertising, 43(1), pp.100-11. EACA, 2014. About Us. [Online] Available at: eaca.eu/ [Accessed 31 May 2014]. Farrell, T. Gordon, R., 2012. Critical social marketing: investigating alcohol marketing in the developing world. Journal of Social Marketing, 2(2), pp.138-56. Friedlein, A., 2014. Six trends in advertising you need to know for 2014. [Online] Available at: marketingweek.co.uk/opinion/ashley-friedlein/six-trends-in-advertising-you-need-to-know-for-2014/4009135.article [Accessed May 2014]. Gautam, A., 2013. A study on (below the line) promotion strategies of telecom industry in western (Up) circle (India) with special reference to Reliance Communication. European Journal of Business and Management, 5(22), pp.74-79. Gillespie, K. Hennessey, ‎.D., 2010. Global Marketing. Mason: Cengage Learning. Grewal, D. et al., 2011. Innovations in retail pricing and promotions. Journal of Retailing, 87, pp.43-52. Kaser, K., 2012. Advertising and Sales Promotion. Mason, USA: Cengage Learning. Kumar, V. Rajan, B., 2012. Social coupons as a marketing strategy: a multifaceted perspective. Journal of the Academy of Marketing Science, 40(1), pp.120-36. Lee, D.-C., Hung, L.-M. Chen, M.-L., 2012. Empirical Study on the Influence among Corporate Sponsorship, Organizational Commitment, Organizational Cohesiveness and Turnover Intention. Journal of Management and Sustainability, 2(2), pp. 43-53 Mishra, P., 2009. Sales Management: Keys to Effective Sales. New Delhi: Global India Publications. Oguinn, T., Allen, C. Semenik, R., 2011. Advertising and integrated brand promotion. Mason: Cengage Learning. Percy, L. Rosenbaum-Elliott, R., 2012. Strategic Advertising Management. Oxford: Oxford University press. Persaud, A. Azhar, I., 2012. Innovative mobile marketing via smartphones: are consumers ready? Marketing Intelligence Planning, 30(4), pp.418-43. Pride, W.M., 2013. Marketing 2014, 17th ed. Mason: Cengage Learning. Pringles, 2014. Products. [Online] Available at: pringles.co.uk/products [Accessed 31 May 2014]. Reynolds, P. Lancaste, ‎G., 2013. Marketing. New Jersey: Routledge. Saxena, R., 2010. Marketing Management 4E. London: McGraw-Hill Education. SentiStrength, 2014. Sentiment Analysis. [Online] Available at: http://sentistrength.wlv.ac.uk/results.php?text=Luois+Vuitton+have+nice+clothes+but+i+hate+their+pricessubmit=Detect+Sentiment [Accessed 19 May 2014]. Seth, S. Kapoor, K., 2014. Fostering Creativity Innovation In Marketing Communication through Social Media. The International Journal Of Business Management, 2(1), pp.19-24. Shimp, T. Andrews, J.C., 2013. Advertising promotion and other aspects of integrated marketing communications. Mason: Cengage Learning. Sigala, M., 2010. The Handbook of Field Marketing: A Comprehensive Guide to Understanding and Outsourcing Face-to-face Direct Marketing. Journal of Product Brand Management, 19(1), pp.67-68. Stone, M.A. Desmond,J ‎., 2007. Fundamentals of Marketing. London: Routledge. Tuten, T.L. Solomon, M.R., 2012. Social Media Marketing. New York: Prentice Hall. Warc, 2014. Promotional Marketing Council. [Online] Available at: warc.com/ContentandPartners/PromotionalMarketingCouncil.info [Accessed May 2014]. Wharton, C., 2013. Advertising as Culture. Bristol: Intellect. Woisetschlger, D.M. Michaelis, M., 2012. Sponsorship congruence and brand image: A pre-post event analysis. European Journal of Marketing, 46(3/4), pp.509-23.

How Does the Scoring Curve Work for the ACT?

The ACT is a standardized exam most commonly taken by juniors and seniors in the United States. Many college admissions committees require either an ACT or SAT score, and some states now use the ACT as a high school graduation requirement. The test is well known nationally and its results are recognized by the most competitive colleges and universities in the country. For this reason, it comes as a bit of a surprise that ACT scores are not as commonly understood as one might expect. In fact, there are many misconceptions about ACT scores and their meaning, including the idea of an ACT scoring curve.       In this post, we will outline how ACTs are scored and what the implications of this scoring are on testing decisions and score comparisons. Read on to learn more about how the ACT scoring curve works. The ACT is offered in the United States six times per year, and while it’s common to think that your test will be scored on a curve in relation to the other tests taken on your test date, this is actually incorrect.   Your ACT is scored through a series of careful calculations. First, the number of questions you got right on each separate section is tallied. This results in what is known as a raw score. The raw score is simply the number of correct answers you submitted, and this number is not readily apparent on your score report. Instead, you see a score that is scaled. Your raw score is converted to a scaled score ranging from 1-36. These are the scores headlining your score report and are the numbers you’re probably most familiar with if you’ve researched ACT averages or benchmarks. Your scaled scores for each separate section are then averaged to calculate your composite score. Fractions more than or equal to one half are rounded up to the nearest whole number, while fractions under one half are rounded down to the nearest whole number. Your composite score is the first number that appears on your score report and is widely accepted as the most important indicator of your success on the test. Raw scores are converted to scaled scores by using a test-specific curve designed to correct for slight variations in the difficulty of each test. The curve is not based in any way on the performance of your peers. While we’re most accustomed to hearing about curves that are plotted in relation to other scores on the test, for the ACT this is not the case. Instead, the curve is calculated based on the specific difficulty of the ACT that you took. Because there are multiple versions of the test administered each year, it’s necessary to account for slight variations in how difficult each test is. Questions are weighted by difficulty and each test’s specific curve will take this into account. Again, multiple versions of the ACT are administered throughout the year and the difficulty of each test will vary. But generally, there is no single test administration that is easier than another. Even if a single test was easier, the score conversion process is designed to negate this difference on your scaled score. That is to say, if you did happen to take a slightly easier version of the exam, the scale to convert your raw score would be slightly steeper, making any mistakes more significant than they would be on a harder version of the test. Because many people do not understand the scaling process, there are some misconceptions about choosing a specific test date. One common misconception is that you should avoid taking the test during a particular month if there may be a large group of strong students taking the test, since this would throw off the scoring curve. Some people might say that the October test date is typically the most competitive, since many high school seniors are taking the test for the last time. But this idea is actually false, since the scoring curve does not depend on the scores achieved by other students taking the test at the same time as you. For example, if you take the ACT during a month when many strong students are also testing, and many of them score a perfect 36, your score will be the same as it would have been had they not taken the test. Your scaled score is dependent only on the independent difficulty of the particular version of the ACT that you took. The performance of your peers bears no weight on your converted score. Unless you have an official ACT Converted Score Chart produced specifically for the version of the test that you’re trying to score, you cannot convert your own raw score to the scaled score. On official practice tests, you are given a conversion chart made specifically for that test. While the chart changes only slightly from one version of the test to another, it cannot be reliably used to convert scores from other versions of the ACT. To get an idea of what the converted score chart looks like, and the process for scoring an ACT, check out page 60 of the official Preparing for the ACT Test booklet, which contains a complete practice test and its specific ACT Converted Score Chart. There is no magic formula when it comes to scoring well on the ACT. No test dates are easier than others, no test facilities will administer an easier test on any given day, and no amount of peer influence will change the way your raw score is converted to the 36-point scale. The only way to ensure that you receive the highest ACT score you’re capable of is to maximize your studying and test preparations. Some students find a study group helps to keep them on track and hold them accountable. Other students find that a personal ACT tutor is the most effective means of preparing. Still others prefer studying independently. Whatever the case may be for you, make sure to begin your test preparations well ahead of time. Here are some study guides to get you started: In addition to studying the test content, be sure to study test strategy and format as well. You should go into the test knowing exactly what to expect on test day so that there are no surprises to throw you off your game. Be familiar with the instructions for each individual section, the pacing of each section, and the general content knowledge required. While there is no single test date or facility that will magically transform your ACT score from drab to fab, there are certainly measures that you can take in advance to set yourself up for the most successful testing experience possible. Don’t overlook the value of proper planning and prior preparation as you get ready for your ACT test day. To learn more about the ACT test, check out these posts: With our free ACT checklist, you’ll get tips on how to strategize and get ready for the ACT. Enter your name and email below to download the checklist.

Supermarkets in UK Literature review Example | Topics and Well Written Essays - 3000 words

Supermarkets in UK - Literature review Example The researcher aims to evaluate and present academic journals that relate to the topic. The first academic article that relates to my topic is UK Supermarket Space Race Faces Scrutiny by Andrea Felsted. â€Å"The main beneficiaries in the retail grocery sector of this drive to economies have been those large-scale supermarkets that have pushed everyday low prices, while some of the more basic bargain retailers have also seen benefits†. The article Supermarkets – The New Drivers of Urban Growth published in the journal says that, Supermarkets have turned out to be one of the main players in shaping and building places. The author summaries in the article are that, retailers don’t desire to construct a supermarket these days. â€Å"While the economic downturn has impacted heavily upon most development, the major retailers have gone from strength to strength. Supermarkets are increasingly being built on prime sites in an urban setting, rather than out of town, and investment in the site goes well beyond building a big retail shed† Mintel in his book says that it was a very rough year in 2010 for grocery retailers, due to clients switching to extremely competitive discount food dealers, and that they paid more attention on wasting food. According to Alexandru M. Degeratu in his article called, Consumer Choice Behavior in Online and Traditional Supermarkets: The Effects of Brand Name, Price, and other Search Attributes, says that, there is rising interest or attention in understanding the results of computer mediated shopping atmospheres. A subject of particular interest to equally academics and practitioners is in determining whether there are methodical dissimilarities in customer choice behavior among regular and online (offline) storerooms, and if there are dissimilarities, in understanding the causes for these differences. â€Å"Advertising induces brand loyalty in consumers who would otherwise purchase the cheapest alternative on t he market.†4 According to Helen E Perriman in his article, THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON CONSUMER BEHAVIOUR, behavior of the consumer is influenced by both interior features and external features that characterize the atmosphere in which the person behavior takes place. (Helen E Perriman 2010). Andy Wood in his article called, Shopper behaviour as the UK Exits Recession, talks about consumer’s supermarket shopping behavior during recession. According to him, one of the most precious tools in every retail grocery market chaos is the programmes related to consumer loyalty. Whereas in the previous year, the market share of the Tesco dipped in the face of customers going down the bazaar looking for superior deals, so the marketplace leader has organized to turn various things around. (Andy Wood 2010). The major beneficiaries in the

HEALTHCARE ETHICS AND END OF LIFE DECISIONS Essay

HEALTHCARE ETHICS AND END OF LIFE DECISIONS - Essay Example There are also several factors that the court needs to look at as there comes a time when the court has to decide what type of treatment can be administered, withdrawn or withheld from a patient. Most important factors include whether a patient is competent or incompetent (Cohen-Almagor, 2001). A competent patient is seen by the court as an individual who is able to give informed consent or otherwise refuse treatment while incompetent patient is unable or lacks the capacity to do the same. In regard to individual autonomy the court is obliged to honor the consent of a competent patient in regard to their medical attention. When it comes to incompetent patient for example one that is in a comma, he or she cannot make an informed decision therefore an â€Å"advance directive† may be required in order to make a decision such as termination of life sustaining care and treatment. In the case quinlan, 70 N.J. 10, 355 A. 2d 647 is an example of a case where death is defined. Karen Ann Quinlan was in a vegetative state whereby she was brain dead and relied on mechanical respirator and artificial nutrition to sustain her. The courts were right to rule that a patient’s guardian and parents have the legal right to have a right of privacy on behalf of the patient. In so doing patients who are in an incompetent state can be safeguarded from suffering by their legal guardians or parents. The above definition however cannot be used as the universal definition as there are several definitions for the death. Some of the most common definitions are as follows: The common traditional meaning has always been adopted from Black’s Law Dictionary. The dictionary states that death is the â€Å"termination of respiration, heartbeat, and some of the central nervous system functionality, such as pulsation and respiration† (Pozgar, 2012). Most medical journals also define death as the end of life and dying as the process

Gods and Goddesses of Greek Mythology Essay Example for Free

Gods and Goddesses of Greek Mythology Essay The book Mythology by Edith Hamilton is a novel devoted to the legends of Greek Mythology. Such legends tell stories of mighty heroes, ghastly creatures, and Gods and Goddesses with amazing powers. In order to fully understand these myths, a reader must examine each of these Gods or Goddesses individually and identify the unique Characteristics they have. The first humanoid Gods that appeared in Greek Mythology were the Titans, or the Elder Gods. They were the children of Mother Earth and Father Heaven, and due to their enormous size and strength, they ruled over the universe for eons. Some of the most famous Titans were: Atlas, who carried the world on his shoulders; Prometheus, who brought fire to mankind and then was famously chained to a mountain; and Cronus, the king of the Titans. The Titans were in complete control of the heavens and earth, and it would have stayed that way if it weren’t for their own children. The children of the Titans were the Gods and Goddesses of Olympus, or also known as the twelve great Olympians. The king of the Gods, and the God who overthrew Cronus to take his power, was Zeus. Zeus was the supreme ruler after the fall of Cronus, as well as the Lord of the Sky, the Rain-god, the Cloud-gatherer, and the wielder of the awful thunderbolt. His power was greater than all of the other Gods combined. Zeus was also a lover of many mortal women, and had many demigod (half-god half-mortal) children. Zeus’s bird was the Eagle, his symbols of power the thunderbolt and his breastplate Aegis. Hera was Zeus’s wife and sister. She was the Goddess of Marriage. She was always venerated in the home, and it was she married women turned to with their problems. Ironically enough, Hera was also well known for her hatred of the women who Zeus had affairs with, punishing them for mercilessly in blind anger. Poseidon was the God of the Sea, and was the most powerful God besides Zeus. He could calm the waters with his golden chariot, or create mighty storms. He carried beside him a three pronged trident that could cause earthquakes. Besides being honored for the lord of the water, he also created the first horse and gave it to man. Hades was the God of the Dead. Not to be confused with the God of Death itself, who was Thanatos; Hades ruled the underworld. His kingdom was under the surface of the earth, so all the precious metals under the ground belonged to him; therefore, he was also the God of Wealth. He did not often leave his dark realm, and he was not a welcome visitor when he did. Athena was often recognized as a ruthless war Goddess. She was born from Zeus’s head fully grown and clothed in battle gear. She has been called gray-eyed and the protector of civilized life. She was a symbol of wisdom, purity, and reason. The city of Athens was her special city, honorably named after her; the olive invented by her was her tree. Apollo has been known as the Archer and God of Truth. He was also the Healer, who first taught men the healing art. He was the master musician at Olympus, and delighted the Gods with his beautiful golden lyre. The Laurel was his sacred tree, and the Dolphin and Crow his most sacred animals. Artemis was a Lady of Wild Things, huntsman in chief to the Gods. She was known as the Moon Goddesses, and carried silver arrows that could pierce an animal as harmlessly and quickly as moonlight. Notably, all animals were sacred to her, especially the deer. Aphrodite was the Goddess of Love and Beauty. She was said to be born of the foam of the sea near the islands of Cythera and Cyprus. Where ever she goes, beauty follows and men succumb to her love. Her husband was the disfigured God Hephaestus; however she was often portrayed as in a love affair with Ares. Hephaestus was the God of Fire; also known as the Master of the Forge. He was the only ugly and lame Olympian. He built furnishings and weapons for the Gods, and it was said his forge was under a volcano. He was a kindly, peace-loving, and popular on earth and on Mount Olympus. Hestia was the God of the home and hearth. Though she had no distinct personality, when a baby was born it was always carried around her shrine, and every meal started and ended with an offering to her. Every city had a hearth dedicated to her that was never allowed to go out. Hermes was a messenger, trickster, trader, and thief. Before he was even a day old, he stole Apollo’s herds; then, as recompense, he invented Apollo’s lyre for him out of a tortoise shell. He was a God to all traders and merchants, and was Zeus’s personal messenger. He was the most cunning and shrewd out of all the Gods. The God of War was Ares. He was a fierce cruel son of Zeus and Hera, both who detested him. He delighted in bloodstained battles and the fury of fighting, yet was also described as a coward, who ran away moaning when he was wounded. His bird was naturally the vulture. The twelve great Olympians listed above were not the only Gods in Greek Mythology. In addition to these Olympians, the Greeks also had many minor Gods that they worshiped as well. They lived on the Earth rather than on Mount Olympus. The two most important minor Gods were Demeter and Dionysus. Demeter was originally the Goddess of Corn, though she grew to represent the Goddess of all harvests. She was the one who brought summer and spring to the earth, and who brought every fall and winter when sorrowed for her daughter. She was very important to Greek culture had many mortal like qualities, such as grief and sadness. Dionysus was the God of Wine and drunken revelry. He had a strong dual personality, where he could make men ecstatic and oblivious to their troubles, but then also make them hostile and insane. He traveled the world, hardly staying on Mount Olympus, discovering the secrets to winemaking. He was a welcome visitor at any party, and Greek Culture loved him. Another minor God that was well known was Pan. He was the shepherd and goat herder’s God. He was not divine, glorious, or radiant, but rather ugly because of his goat hooves and horns. He was an excellent musician and famous for the sweet nature melodies he played on his reed pipes. In addition to Gods and Goddesses, the magical creatures of Greek Mythology are also important to know. Satyrs were half-goat half-man dwellers of the forest. Centaurs were a half-horse half-man creature; The Gorgons were three dragon-like creatures who turned men to stone; The Sirens lured seamen to their deaths with enchanting songs. The Gods, Goddesses, and creatures of Greek Mythology were fascinating. The unique characteristics of each god and goddess are what supported entire cultures, as well as made the timeless tales of so remarkable. With help from Edith Hamilton’s Mythology, a person really can understand who the Gods and Goddesses of Greek Mythology were, and gain knowledge about how each of them was different but important individually.

Is it right for celebrities to make a lot of money? Essay -- essays re

Over-Paid, Yet Under Rated   Ã‚  Ã‚  Ã‚  Ã‚  Growing up in America, many people are unaware of what is really occurring around them. People are so into their televisions, and their jobs that they fail to recognize the amount of work that is put into making this country as wonderful as it is. However, many people complain about the wages they receive hourly at work, or the salary they earn every month. Some complain that it is too low, and others complain about the taxes that are deducted, and how they do not have money to spend for occasions like Christmas, or even vacations. Then those same people sit at home, watch television, whether it is a basketball game, a game show, or even a soap opera, and complain about why those actors, athletes, and entertainers earn so much money, when they do not do as much as doctors, and teachers do. They complain about soccer players that are paid more monthly than doctors do yearly. They complain about singers that are paid for lip singing on stage, fooling many people. Ev en with their complaints, they sit down and watch the football game, watch the concert, and support actors, entertainers, and athletes. Why should those actors, entertainers, and athletes be paid that much money when they do not shape our future like teachers do, or save lives like doctors do? Unfortunately, for those people who complain, it is because of people like that, which cause people like Britney Spears, and Shaquille O’Neal to have more money than some people can count. It certainly is not fair that famous people such as Shaquille O’Neal, and Britney Spears earn so much money, but people cannot complain about it not being fair because unfortunately America is a very entertainment filled country, and almost everyone in the country has a favorite singer, band, athlete, team, or sport that they support, by either purchasing clothing, albums, tickets to the games or concerts, which makes the famous person earn that high amount of money.   Ã‚  Ã‚  Ã‚  Ã‚  The music industry is a very large industry in America, and it seems to be growing larger and larger year by year. A person may not have to go through four years of college to be able to sing a song, but either way they must work to earn what they do. An example of that would be the famous rapper Eminem. While growing up, Eminem had to work to support his mother because his f... ... so the people who complain will stop complaining about how those famous people get money, but will then begin to complain about why there are no good shows, or sports, or movies to watch on television any longer. There will always be complaints, but those who complain should be aware that they are the ones that cause those actors, actress, athletes, and entertainers to have the amount of money that they do. Works Cited Lawson, Terry. â€Å"’8 Mile’ Strikes Gold at Opening.† Detroit Free Press 11 Nov. 2002. 24 Nov. 2003. . Reinhold, Eric J. â€Å"A Game Plan for Working with Professional Athletes.† Journal of Financial Planning. Jun. 2000. 26 Nov. 2003. . Rovell, Darren. Official: Beckham Not Nearing Lifetime Adidas Deal. 11 Aug. 2003. 25 Nov. 2003. . Salary Cap for 2003-04 Season set at $43.84 Million. 15 Jul. 2003. 24 Nov. 2003. . Salomon, Yves Erwin. â€Å"Eminem, Mariah Carey & Jay-Z Make Top 10 of ‘Rocks 50 Richest 2003’ List.† Launch Music on Yahoo. 18 Mar. 2003. 25 Nov. 2003. . Specialists, not Generalists, Taking Home More Pay. American College of Physicians. 25 Nov. 2003. . Wilson, Bernie. â€Å"Bryant: ‘Terrified’ for case’s effect on family.† USA Today. 4 Oct. 2003. 25 Nov. 2003. . Is it right for celebrities to make a lot of money? Essay -- essays re Over-Paid, Yet Under Rated   Ã‚  Ã‚  Ã‚  Ã‚  Growing up in America, many people are unaware of what is really occurring around them. People are so into their televisions, and their jobs that they fail to recognize the amount of work that is put into making this country as wonderful as it is. However, many people complain about the wages they receive hourly at work, or the salary they earn every month. Some complain that it is too low, and others complain about the taxes that are deducted, and how they do not have money to spend for occasions like Christmas, or even vacations. Then those same people sit at home, watch television, whether it is a basketball game, a game show, or even a soap opera, and complain about why those actors, athletes, and entertainers earn so much money, when they do not do as much as doctors, and teachers do. They complain about soccer players that are paid more monthly than doctors do yearly. They complain about singers that are paid for lip singing on stage, fooling many people. Ev en with their complaints, they sit down and watch the football game, watch the concert, and support actors, entertainers, and athletes. Why should those actors, entertainers, and athletes be paid that much money when they do not shape our future like teachers do, or save lives like doctors do? Unfortunately, for those people who complain, it is because of people like that, which cause people like Britney Spears, and Shaquille O’Neal to have more money than some people can count. It certainly is not fair that famous people such as Shaquille O’Neal, and Britney Spears earn so much money, but people cannot complain about it not being fair because unfortunately America is a very entertainment filled country, and almost everyone in the country has a favorite singer, band, athlete, team, or sport that they support, by either purchasing clothing, albums, tickets to the games or concerts, which makes the famous person earn that high amount of money.   Ã‚  Ã‚  Ã‚  Ã‚  The music industry is a very large industry in America, and it seems to be growing larger and larger year by year. A person may not have to go through four years of college to be able to sing a song, but either way they must work to earn what they do. An example of that would be the famous rapper Eminem. While growing up, Eminem had to work to support his mother because his f... ... so the people who complain will stop complaining about how those famous people get money, but will then begin to complain about why there are no good shows, or sports, or movies to watch on television any longer. There will always be complaints, but those who complain should be aware that they are the ones that cause those actors, actress, athletes, and entertainers to have the amount of money that they do. Works Cited Lawson, Terry. â€Å"’8 Mile’ Strikes Gold at Opening.† Detroit Free Press 11 Nov. 2002. 24 Nov. 2003. . Reinhold, Eric J. â€Å"A Game Plan for Working with Professional Athletes.† Journal of Financial Planning. Jun. 2000. 26 Nov. 2003. . Rovell, Darren. Official: Beckham Not Nearing Lifetime Adidas Deal. 11 Aug. 2003. 25 Nov. 2003. . Salary Cap for 2003-04 Season set at $43.84 Million. 15 Jul. 2003. 24 Nov. 2003. . Salomon, Yves Erwin. â€Å"Eminem, Mariah Carey & Jay-Z Make Top 10 of ‘Rocks 50 Richest 2003’ List.† Launch Music on Yahoo. 18 Mar. 2003. 25 Nov. 2003. . Specialists, not Generalists, Taking Home More Pay. American College of Physicians. 25 Nov. 2003. . Wilson, Bernie. â€Å"Bryant: ‘Terrified’ for case’s effect on family.† USA Today. 4 Oct. 2003. 25 Nov. 2003. .

Food Retail in Europe

INDUSTRY PROFILE Food Retail in Europe Reference Code: 0201-2058 Publication Date: June 2010 www. datamonitor. com Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: [email  protected] com Datamonitor Europe 119 Farringdon Road London EC1R 3DA United Kingdom t: +44 20 7551 9000 f: +44 20 7675 7500 e: [email  protected] com Datamonitor Middle East and North America Datamonitor PO Box 24893 Dubai, UAE t: +49 69 9754 4517 f: +49 69 9754 4900 e: [email  protected] datamonitor. om Datamonitor Asia Pacific Level 46, 2 Park Street Sydney, NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8705 6901 e: [email  protected] com Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 1 EXECUTIVE SUMMARY EXECUTIVE SUMMARY Market value The European food retail industry grew by 8. 5% in 2009 to reach a value of $1,663. 1 billion. Market value foreca st In 2014, the European food retail industry is forecast to have a value of $2,477. billion, an increase of 49% since 2009. Market segmentation I Hypermarkets, supermarkets, and discounters sales proved the most lucrative for the European food retail industry in 2009, with total revenues of $798. 5 billion, equivalent to 48% of the industry's overall value. Market segmentation II Germany accounts for 14. 1% of the European food retail industry value. Market rivalry The industry is becoming consolidated with large chain supermarkets or hypermarkets wielding more power over smaller specialty, luxury or organic food outlets. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 2 CONTENTS TABLE OF CONTENTS EXECUTIVE SUMMARY MARKET OVERVIEW Market definition Research highlights Market analysis MARKET VALUE MARKET SEGMENTATION I MARKET SEGMENTATION II FIVE FORCES ANALYSIS Summary Buyer power Supplier power New entrants Substitutes Rivalry LEADING COMPANIES Metro AG Carrefour S. A. Lidl Dienstleistung Tesco PLC MARKET FORECASTS Market value forecast APPENDIX Methodology Industry associations Related Datamonitor research Disclaimer 2 7 7 8 9 10 11 12 13 13 15 17 18 19 20 21 21 25 29 30 34 34 35 35 36 36 37 Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 3 CONTENTS ABOUT DATAMONITOR Premium Reports Summary Reports Datamonitor consulting 38 38 38 38 Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 201 – 2058 – 2009 Page 4 CONTENTS LIST OF TABLES Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17: Europe food retail industry value: $ billion, 2005–09(e) Europe food retail industry segmentation I:% share, by value, 2009(e) Europe food retail industry segmentation II: % share, by v alue, 2009(e) Metro AG: key facts Metro AG: key financials ($) Metro AG: key financials (â‚ ¬) Metro AG: key financial ratios Carrefour S. A. : key facts Carrefour S. A. : key financials ($) Carrefour S. A. : key financials (â‚ ¬) Carrefour S. A. : key financial ratios Lidl Dienstleistung: key facts Tesco PLC: key facts Tesco PLC: key financials ($) Tesco PLC: key financials (? ) Tesco PLC: key financial ratios Europe food retail industry value forecast: $ billion, 2009–14 10 11 12 21 22 22 23 25 27 27 27 29 30 31 31 32 34 Europe – Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 5 CONTENTS LIST OF FIGURES Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Europe food retail industry value: $ billion, 2005–09(e) Europe food retail industry segmentation I:% share, by value, 2009(e) Europe food retail industry segmentation II: % share, by value, 2009(e) Forces driving ompetition in the food retail industry in Europe, 2009 Drivers of buyer power in the food retail industry in Europe, 2009 Drivers of supp lier power in the food retail industry in Europe, 2009 Factors influencing the likelihood of new entrants in the food retail industry in Europe, 2009 Factors influencing the threat of substitutes in the food retail industry in Europe, 2009 Drivers of degree of rivalry in the food retail industry in Europe, 2009 Metro AG: revenues & profitability Metro AG: assets & liabilities Carrefour S. A. : revenues & profitability Carrefour S. A. : assets & liabilities Tesco PLC: revenues & profitability Tesco PLC: assets & liabilities Europe food retail industry value forecast: $ billion, 2009–14 10 11 12 13 15 17 18 19 20 23 24 28 28 32 33 34 Figure 8: Figure 9: Figure 10: Figure 11: Figure 12: Figure 13: Figure 14: Figure 15: Figure 16: Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 6 MARKET OVERVIEW MARKET OVERVIEW Market definition The food retail market includes the retail sales of all food products, both packaged and unpackaged, as well as beverages (including retail sales of all alcoholic and non-alcoholic beverages). All on-trade sales of food and beverage are excluded. All currency conversions are calculated at constant average 2009 exchange rates. For the purposes of this report, Europe consists of Western Europe and Eastern Europe. Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, and the United Kingdom. Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 7 MARKET OVERVIEW Research highlights The European food retail industry had total revenue of $1,663. 1 billion in 2009, representing a compound annual growth rate (CAGR) of 7. 4% for the period spanning 2005-2009. Hypermarkets, supermarkets, and discounters sales proved the most lucrative for the European food retail industry in 2009, with total revenues of $798. 5 billion, equivalent to 48% of the industry's overall value. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 8. % for the fiveyear period 2009-2014, which is expected to drive the industry to a value of $2,477. 4 billion by the end of 2014. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 8 MARKET OVERVIEW Market analysis The European food ret ail industry has experienced very strong growth in recent years and the forecast is for this to gently accelerate towards 2014. The European food retail industry had total revenue of $1,663. 1 billion in 2009, representing a compound annual growth rate (CAGR) of 7. 4% for the period spanning 2005-2009. In comparison, the German and UK industries grew with CAGRs of 2. 1% and 4. 2% respectively, over the same period, to reach respective values of $234. 8 billion and $186. 1 billion in 2009. Hypermarkets, supermarkets, and discounters sales proved the most lucrative for the European food retail industry in 2009, with total revenues of $798. 5 billion, equivalent to 48% of the industry's overall value. In comparison, convenience stores and gas stations generated sales of $381. 3 billion in 2009, equating to 22. 9% of the industry's aggregate revenues. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 8. % for the fiveyear period 2009-2014, which is expected to drive the industry to a value of $2,477. 4 billion by the end of 2014. Comparatively, the German and UK industries will grow with CAGRs of 2. 5% and 3. 4% respectively, over the same period, to reach respective values of $265. 5 billion and $219. 4 billion in 2014. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 9 MARKET VALUE MARKET VALUE The European food retail industry grew by 8. 5% in 2009 to reach a value of $1,663. 1 billion. The compound annual growth rate of the industry in the period 2005–09 was 7. 4%. Table 1: Year 2005 2006 2007 2008 2009(e) CAGR: 2005–09 Source: Datamonitor Europe food retail industry value: $ billion, 2005–09(e) $ billion 1,248. 6 1,321. 6 1,412. 4 1,533. 3 1,663. 1 â‚ ¬ billion 897. 9 950. 4 1,015. 8 1,102. 7 1,196. 1 % Growth 5. 8 6. 9 8. 6 8. 5 7. 4% DATAMONITOR Figure 1: Europe food retail industry value: $ billion, 2005–09(e) Source: Datamonitor DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 10 MARKET SEGMENTATION I MARKET SEGMENTATION I Hypermarket, Supermarket, & Discounters is the largest segment of the food retail industry in Europe, accounting for 48% of the industry's total value. The convenience stores & gas stations segment accounts for a further 22. 9% of the industry. Table 2: Category Hypermarket, Supermarket, & Discounters Convenience Stores & Gas Stations Food and Drinks Specialists Drug Stores & Health and Beauty Stores Cash & Carries & Warehouse Clubs Other Total Source: Datamonitor Europe food retail industry segmentation I:% share, by value, 2009(e) % Share 48. 0% 22. 9% 14. 9% 3. 4% 1. 4% 9. 4% 100% DATAMONITOR Figure 2: Europe food retail industry segmentation I:% share, by value, 2009(e) Source: Datamonitor DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 11 MARKET SEGMENTATION II MARKET SEGMENTATION II Germany accounts for 14. 1% of the European food retail industry value. France accounts for a further 13. 5% of the European industry. Table 3: Category Germany France Italy United Kingdom Spain Rest of Europe Total Source: Datamonitor Europe food retail industry segmentation II: % share, by value, 2009(e) % Share 14. % 13. 5% 12. 2% 11. 2% 7. 8% 41. 1% 100% DATAMONITOR Figure 3: Europe food retail industry segmentation II: % share, by value, 2009(e) Source: Datamonitor DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 12 FIVE FORCES ANALYSIS FIVE FORCES ANALYSIS The food retail market will be analyzed taking supermarkets, hypermarkets and specialist retailers as players. The key buyers will be taken as end-consumers, and food manufacturers, farmers, agricultural co-operatives as the key suppliers. Summary Figure 4: Forces driving competition in the food retail industry in Europe, 2009 Source: Datamonitor DATAMONITOR The industry is becoming consolidated with large chain supermarkets or hypermarkets wielding more power over smaller specialty, luxury or organic food outlets. In our analysis of the global food retail industry, retailers such as supermarkets, hypermarkets, and specialist outlets, will be taken as industry players and end-consumers will be understood as buyers. With a range of different players within the industry, the size and financial strength of each varies accordingly. With consumers generally facing no substantial switching costs, this buyer mobility forces larger retailers to maintain attractive pricing schemes. Specialist, luxury, or organic retailers do not face the same price sensitivity due to the unique level of product differentiation, yet due to the nature of such products, they exist more as niche markets and are not able to secure a large volume of consumers. Specialist outlets may have no choice but to commit to long term supplier contracts in order to secure a steady supply of quality or specially prepared products. Whereas, supermarkets and hypermarkets have a higher number of options and can hold looser relationships with a larger number of suppliers. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 13 FIVE FORCES ANALYSIS Where branded products attract loyal consumers, the distribution channel for manufacturers is protected and retailers face pressure to stock the popular items. With established supermarkets and hypermarkets present, potential new entrants may struggle to compete with aggressive marketing and pricing policies. Nonetheless, relatively low entry and exit costs within the industry and the emergence of thriving health and ethical niches offer examples of possible niches in which new entrants may flourish sheltered from direct competition with current players. Food service (takeaways, vendors and restaurants) can be seen as a substitute to food retail products however for the vast majority of people it currently exists as an occasional accompaniment rather than a wholesale alternative. Subsistence farming is a more direct substitute, sometimes replacing standard retail behavior outright, yet it is no longer common. The absence of switching costs for consumers ensures a competitive climate within the food retail industry. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 14 FIVE FORCES ANALYSIS Buyer power Figure 5: Drivers of buyer power in the food retail industry in Europe, 2009 Source: Datamonitor DATAMONITOR Retailers range widely in size with large chain supermarkets or hypermarkets such as Tesco and Metro AG wielding power over smaller specialty, luxury or organic food outlets whose grip on the industry is significant but currently limited. Accordingly, the financial muscle of industry players differs depending on the type of player. The sheer volume of potential customers in key areas of the food retail industry diminishes the standing of any individual customer. The revenue generated by any particular consumer is minimal, but collectively they represent wider consumer interests and retailers cannot afford to disregard the sensitivities of buyers. Price and convenience are two central concerns however they are not necessarily the principle factors. A rise in health consciousness has driven a growing demand for nutritional quality in food products. The culture of convenience now faces the challenge of a counter-trend in which a shift back towards fresh, simple or traditionally prepared foods undermines the retail position of frozen foods and similar products. The emergence and development of ethical niches adds further momentum to this movement within the industry. The response of food retailers must accommodate such diverse interests. A number of retailers operate incentive schemes for frequent shoppers and this can help secure customer retention. By discouraging movement across retail outlets, consumer mobility is reduced and, in the long term, buyer power can be weakened. Although high brand recognition does not automatically translate into consumer loyalty, if it is supported by a product range in which popular food products are central, the retailer can Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 15 FIVE FORCES ANALYSIS often draw indirectly on the loyalty base that manufacturers have established. Specialty, luxury or organic retailers can, due to the high level of product differentiation, justify price levels that would otherwise be unsustainable yet the limited volume of consumers places restraints on the power of such players. Buyer power overall is moderate. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 16 FIVE FORCES ANALYSIS Supplier power Figure 6: Drivers of supplier power in the food retail industry in Europe, 2009 Source: Datamonitor DATAMONITOR Suppliers to the food retail industry include food manufacturers, farmers, and agricultural co-operatives. In order to ensure stability and offset the dangers of local sourcing problems or price fluctuations, large retail companies often maintain relationships with a wide range of suppliers. This diffuses dependency, minimizing the risks to retailers and strengthening their standing in relation to their suppliers. Long term contractual obligations are avoided where possible, and switching costs kept to a minimum. With a firm hold on key distribution channels, the leading retailers can dominate negotiations with certain suppliers. This is often difficult for smaller retailers such as specialist, luxury or organic outlets. The limited number of suppliers in niche areas and the centrality of product quality or preparation type limit’s the available range of sourcing options. With switching costs subsequently higher, the balance of power shifts somewhat from smaller retailers to specialist suppliers. Whilst the need to satisfy consumer demand for popular products bolsters manufacturers, many others face the problem of a high degree of retailer mobility as they switch suppliers in accordance with pricing pressures. The position of many large retail companies has also been strengthened internally with a surge of own brand products sidelining certain suppliers. Suppliers who are able to differentiate their product can wield some power over retailers, should their product be popular with the end consumer. Supplier power overall is moderate. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 17 FIVE FORCES ANALYSIS New entrants Figure 7: Factors influencing the likelihood of new entrants in the food retail industry in Europe, 2009 Source: Datamonitor DATAMONITOR Large-scale, established retailers hold a natural advantage in operating businesses that benefit significantly from economies of scale, employing aggressive pricing schemes that cannot be matched by smaller retailers. Strong branding exercises and fast paced expansion deepen this asymmetry. Nevertheless, large retailers are not invulnerable to the threat of new entrants. Exit and entry costs within the industry are relatively low, encouraging potential entrants. The rapid growth of health consciousness and a swell of ethical goods form attractive avenues for new entrants seeking to move into a niche area that offers inbuilt protection from pricing pressures and mainstream marketing. Given the presence of many large-scale retailers, and the security of heavy branding, direct head-to-head competition is extremely difficult for new retailers. Strong growth makes the market attractive to prospective new entrants. Overall, the threat of new entrants is moderate. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 18 FIVE FORCES ANALYSIS Substitutes Figure 8: Factors influencing the threat of substitutes in the food retail industry in Europe, 2009 Source: Datamonitor DATAMONITOR The chief alternative to food retail is food service. Supported by strong marketing campaigns in the case of fast food companies, and cultural traditions with respect to sit-down restaurants, both types represent a relevant alternative for many consumers. However, for the vast majority of people, these accompany food retail rather than replace it. A more direct substitute is found in subsistence agriculture in which individuals or families farm food to provide for their own personal needs. This is no longer common, however, since the emergence of market capitalism and the impact of this substitute on food retail is fractional. Environmental concerns, increasing health consciousness, and fears over political or economic instability may, in the long term, give this substitute a more significant role. However, it is unlikely to threaten food retailers in the foreseeable future being both labor intensive and often involving considerable start-up capital. The threat from substitutes is weak to moderate. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 19 FIVE FORCES ANALYSIS Rivalry Figure 9: Drivers of degree of rivalry in the food retail industry in Europe, 2009 Source: Datamonitor DATAMONITOR Competition is often fierce within the food retail industry. The lack of substantial switching costs for consumers places pressure on retailers to secure their custom and loyalty. The limited level of differentiation across the basic product range pushes larger retailers into competitive pricing policies. The close similarity of players increases rivalry as they attempt to differentiate themselves through products and price to attract customers. Whilst some companies operate in other industries and can absorb the temporary impact of declining food sales, or high supply prices, for many, ood retail lies at the heart of the business. This basic dependency gives rise to aggressive competition. Rivalry is strong overall. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 20 LEADING COMPANIES LEADING COMPANIES Metro AG Table 4: Metro AG: key facts Schluterstrasse 1, 40235 Dusseldorf, DEU 49 211 6886 4252 49 211 6886 2001 www. metrogroup. de December MEO G Frankfurt DATAMONITOR Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website Metro Group (Metro) is a German trade and retail company organized into independent sales divisions. The group operates 2,195 outlets with approximately 12,350,000 square meters of selling space. It has a presence in 33 countries in Western Europe, Eastern Europe, Asia and Africa. The company employs around 300,000 people. Metro operates in four business segments: Metro Cash & Carry, Real, Media Markt and Saturn and Galeria Kaufhof. Metro Cash & Carry is engaged in cash and carry wholesaling. Operating under the brands of Metro and Makro, it is the group's biggest sales division. Metro Cash & Carry's assortment of products is aimed at commercial and wholesale customers. It operates 665 stores in 30 countries. Real offers a range of food products and an assortment of non-food items. The selling space of the Real stores ranges from 5,000 to 15,000 square meters, with store assortments including up to 80,000 items. Real is based on a large-format hypermarket concept and operates 333 hypermarkets in Germany and 108 stores in Poland, Romania, Russia, Turkey and the Ukraine. Media Markt and Saturn sell consumer electronics across Europe. Galeria Kaufhof operates a chain of department stores in Germany and Belgium. The department stores offer modern lifestyle apparels for men and women and are present in shopping areas and downtown centers. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 21 LEADING COMPANIES In addition to these divisions, Metro provides real estate management services through its subsidiary, Metro Group Asset Management. The company oversees more than 750 properties totaling eight million square meters of commercial space worldwide. It also operates more than 70 shopping centers. Key Metrics The company recorded revenues of $91,119 million in the fiscal year ending December 2009, a decrease of 3. 6% compared to fiscal 2008. Its net income was $722 million in fiscal 2009, compared to a net income of $776 million in the preceding year. Table 5: $ million Metro AG: key financials ($) 2005 77,482. 1 902. 4 40,000. 8 32,613. 0 246,875 2006 83,266. 6 1,658. 9 44,702. 2 36,293. 7 263,794 2007 89,461. 3 1,366. 9 47,099. 4 38,048. 6 275,520 2008 94,493. 6 775. 9 47,034. 0 38,941. 3 290,940 2009 91,118. 8 721. 7 46,814. 3 46,814. 286,091 Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings DATAMONITOR Table 6: â‚ ¬ million Metro AG: key financials (â‚ ¬) 2005 55,722. 0 649. 0 28,767. 0 23,454. 0 2006 59,882. 0 1,193. 0 32,148. 0 26,101. 0 2007 64,337. 0 983. 0 33,872. 0 27,363. 0 2008 67,956. 0 558. 0 33,825. 0 28,005. 0 2009 65,529. 0 519. 0 33,667. 0 33,667. 0 Revenues Net in come (loss) Total assets Total liabilities Source: company filings DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 22 LEADING COMPANIES Table 7: Ratio Metro AG: key financial ratios 2005 1. 2% 4. 2% 1. 5% (0. 2%) 81. 5% 2. 3% $313,851 $3,655 2006 2. 0% 7. 5% 11. 8% 11. 3% 81. 2% 3. 9% $315,650 $6,289 2007 1. 5% 7. 4% 5. 4% 4. 8% 80. 8% 3. 0% $324,700 $4,961 2008 0. 8% 5. 6% (0. 1%) 2. 3% 82. 8% 1. 6% $324,787 $2,667 2009 0. 8% (3. 6%) (0. 5%) 20. 2% 100. 0% 1. 5% $318,496 $2,523 Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings DATAMONITOR Figure 10: Metro AG: revenues & profitability Source: company filings DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 23 LEADING COMPANIES Figure 11: Metro AG: assets & liabilities Source: company filings DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 24 LEADING COMPANIES Carrefour S. A. Table 8: Carrefour S. A. : key facts 26 quai Michele, TSA 20016, 92695 Levallois-Perret Cedex, FRA 33 1 55 63 39 00 www. carrefour. com December CA Paris DATAMONITOR Head office: Telephone: Website: Financial year-end: Ticker: Stock exchange: Source: company website Carrefour is one of the leading grocery and consumer goods distribution groups in the world. The group operates more than 15,000 stores. Carrefour's primary grocery formats includes hypermarkets, supermarkets, hard discount and convenience stores. Carrefour primarily organizes its business segments based on geographic presence: France; Europe excluding France; Asia; and Latin America. In addition, the group's business operation can be segmented on the basis of its store formats (as mentioned in the previous paragraph). Carrefour is the leading hypermarket retailer in the world. The group operates about 1,302 hypermarket stores across the world, of which 228 hypermarkets are in France, 494 in European countries outside France, 288 in Latin America, and 292 in Asia. In Brazil, the group operates its hypermarket business under the Atacadao brand name; these hypermarkets offer a range of competitively priced companyowned and branded products in both food and non-food categories. In addition, the hypermarkets also offer services like insurance, financial services, home computer support, travel and entertainment reservations and mobile phones. The group operates approximately 2,919 supermarket stores in 11 countries under the banners Carrefour Express, Carrefour market, GB, GS and Champion. The supermarkets offer a wide selection of mostly food products and some non-food products related to apparel, culture and leisure, and tableware. Carrefour's hard discount segment, Dia, operates about 6,252 hard discount stores in Spain, France (under Ed and Dia brands), Portugal (under Minipreco brand), Greece, Turkey, Argentina, Brazil and China. The group's hard discount stores offer a range of food, basic health, and cleaning products at discounted rates. Europe – Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 25 LEADING COMPANIES The group's other activities comprise convenience stores, cash and carry foodservice stores, and ecommerce retail format. Carrefour operates about 4,813 convenience stores and 144 cash and carry stores. Convenience stor es are mainly operated by the franchisees under the banners Marche Plus, Shopi, 8 a Huit and Proxi in France; DiperDi in Italy; Carrefour Express and Carrefour GB in Belgium; Carrefour 5 Minut stores in Poland; Carrefour City stores in Spain; and Carrefour Convenient Buy in Thailand. These stores primarily offer a wide selection of food products; these also offer a range of services such as home delivery, dry cleaning, 48-hour photo development, ticket distribution, photocopying, stamps and newspapers. Cash and carry foodservice stores provide wholesale and retail self-service mainly intended for businesses. Carrefour operates cash and carry foodservice stores under the trade name Promocash. Most of the cash and carry stores are operated by franchisees. In addition to the above mentioned store formats, Carrefour also sells its products through various ecommerce websites. Carrefour operates an online grocery store, Ooshop, a leading French online supermarket in terms of sales. It allows customers to shop on the Internet, and select from product listings including fresh and frozen items, at the same price as they would pay in Carrefour's hypermarkets, with the added benefit of home delivery. Carrefour France hypermarket's non-food website, CarrefourOnline. com, offers products such as leisure products (DVDs, games, software, music, books and more), audio and video, household electrical goods, as well as music downloads and even flower and bicycle delivery. Carrefour. es, the group's e-commerce website in Spain, offers both food and non-food products. Key Metrics The company recorded revenues of $119,533 million in the fiscal year ending December 2009, a decrease of 2. 6% compared to fiscal 2008. Its net income was $608 million in fiscal 2009, compared to a net income of $2,140 million in the preceding year. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 26 LEADING COMPANIES Table 9: $ million Carrefour S. A. : key financials ($) 2005 116,399. 7 2,199. 8 64,311. 1 51,259. 436,474 2006 121,561. 3 3,381. 2 66,093. 8 48,356. 4 456,295 2007 128,305. 2 3,447. 4 72,212. 0 57,385. 0 490,042 2008 122,678. 1 2,139. 7 72,420. 6 57,191. 7 495,000 2009 119,532. 5 607. 7 71,685. 0 56,229. 5 495,000 Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings DATAMONITOR Table 10: â‚ ¬ million Carrefour S. A. : key fi nancials (â‚ ¬) 2005 83,710. 0 1,582. 0 46,250. 0 36,864. 0 2006 87,422. 0 2,431. 6 47,532. 0 34,776. 0 2007 92,272. 0 2,479. 2 51,932. 0 41,269. 0 2008 88,225. 2 1,538. 8 52,082. 0 41,130. 0 2009 85,963. 0 437. 0 51,553. 0 40,438. 0 Revenues Net income (loss) Total assets Total liabilities Source: company filings DATAMONITOR Table 11: Ratio Carrefour S. A. : key financial ratios 2005 1. 9% 2. 8% 9. 4% 7. 5% 79. 7% 3. 6% $266,682 $5,040 2006 2. 8% 4. 4% 2. 8% (5. 7%) 73. 2% 5. 2% $266,409 $7,410 2007 2. 7% 5. 5% 9. 3% 18. 7% 79. 5% 5. 0% $261,825 $7,035 2008 1. 7% (4. 4%) 0. 3% (0. 3%) 79. 0% 3. 0% $247,835 $4,323 2009 0. 5% (2. 6%) (1. 0%) (1. 7%) 78. 4% 0. 8% $241,480 $1,228 Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 27 LEADING COMPANIES Figure 12: Carrefour S. A. : revenues & profitability Source: company filings DATAMONITOR Figure 13: Carrefour S. A. : assets & liabilities Source: company filings DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 28 LEADING COMPANIES Lidl Dienstleistung Table 12: Lidl Dienstleistung: key facts Rotelstrasse 30, 74166 Neckarsulm, DEU 49 732 30 6060 www. idl. de December DATAMONITOR Head office: Telephone: Website: Financial year-end: Source: company website Lidl & Schwarz Stiftung (Lidl) operates a chain of grocery stores. The company primarily operates in Europe. Lidl operates about 6,800 deep-discount department stores and no-frills Lidl supermarkets throughout Europe. In Germany it operates about 3,100 stores. The company offers about 800 different products in its stores mostly under Lidl's own brand. These include dairy products, frozen foods, sausages, fresh meat and poultry, fruit and veg delivered fresh every day, and a range of breads. Lidl is also expanding its presence into Denmark, Hungary, Norway, and Slovenia. Key Metrics Financial information for this company is unavailable. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 29 LEADING COMPANIES Tesco PLC Table 13: Head office: Telephone: Website: Financial year-end: Ticker: Stock exchange: Source: company website Tesco PLC: key facts New Tesco House, Delamare Road, Cheshunt, Hertfordshire, EN8 9SL, GBR 44 1992 632 222 www. tescoplc. com February TSCO London DATAMONITOR Tesco is a leading food and grocery retailer. The company operates 4,331 stores in 14 countries worldwide. It operates in the UK, other European countries, the US and Asia. The company operates in a single segment: retail. However, Tesco's operations can be examined by the store formats operated by it: Express, Metro, Superstore, Extra and Homeplus. The company has over 960 Express stores (up to 3,000 sq ft) offering fresh food at convenient locations. These stores sell a range of up to 7,000 products including fresh produce, wines and spirits and bakery products. The company has over 170 Metro stores (approximately 7,000-15,000 sq ft) in town and city centre locations. It offers a tailored range of food products including ready-meals and sandwiches. Tesco operates about 450 superstores (approximately 20,000-50,000 sq ft) at which it offers food as well non-food products such as DVDs and books. Tesco's Homeplus stores (approx. 35,000-50,000 sq ft) are dedicated to non-food including clothing. Tesco has more than 175 Extra stores (approximately 60,000 sq ft and above) which offer a variety of food and non-food product lines ranging from electrical equipment to homewares, clothing, health and beauty, and seasonal items such as garden furniture. Additionally, about 115 Extra and Homeplus stores have opticians and around 270 of them have pharmacies. In addition to stores, Tesco offers retailing services through its online shopping channels, tesco. com and Tesco Direct. The company also provides broadband internet connections (Tesco broadband) and telecommunications services (Tesco Mobile and Home Phone) through a 50-50 joint venture with O2, a mobile phone company. Tesco also provides financial services through Tesco Personal Finance (TPF) which offers a choice of 28 products ranging from savings accounts and credit cards to car and travel insurance. All its financial products are also available for online purchase. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 30 LEADING COMPANIES Key Metrics The company recorded revenues of $84,676 million in the fiscal year ending February 2009, an increase of 14. 9% compared to fiscal 2008. Its net income was $3,376 million in fiscal 2009, compared to a net income of $3,320 million in the preceding year. Table 14: $ million Tesco PLC: key financials ($) 2005 57,602. 2 3,042. 4 31,811. 6 17,695. 242,980 2006 67,234. 5 3,553. 7 35,167. 3 20,447. 6 273,024 2007 66,461. 4 2,959. 8 38,664. 9 22,188. 6 318,283 2008 73,720. 0 3,319. 9 47,014. 4 28,463. 7 345,737 2009 84,675. 6 3,376. 0 71,779. 5 52,460. 3 364,015 Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings DATAMONITOR Table 15: ? million Tesco PLC: key financials (? ) 2005 36,957. 0 1,952. 0 20,410. 0 11,353. 0 2006 43,137. 0 2,280. 0 22,563. 0 13,119. 0 2007 42,641. 0 1,899. 0 24,807. 0 14,236. 0 2008 47,298. 0 2,130. 0 30,164. 0 18,262. 0 2009 54,327. 0 2,166. 46,053. 0 33,658. 0 Revenues Net income (loss) Total assets Total liabilities Source: company filings DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 31 LEADING COMPANIES Table 16: Ratio Tesco PLC: key financial ratios 2005 5. 3% 10. 1% 10. 9% 6. 4% 55. 6% 10. 1% $237,066 $12,521 2006 5. 3% 16. 7% 10. 5% 15. 6% 58. 1% 10. 6% $246,259 $13,016 2007 4. 5% (1. 1%) 9. 9% 8. 5% 57. 4% 8. 0% $208,812 $9,299 2008 4. 5% 10. 9% 21. 6% 28. 3% 60. 5% 7. 7% $213,226 $9,602 2009 4. % 14. 9% 52. 7% 84. 3% 73. 1% 5. 7% $232,616 $9,274 Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings DATAMONITOR Figure 14: Tesco PLC: re venues & profitability Source: company filings DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 32 LEADING COMPANIES Figure 15: Tesco PLC: assets & liabilities Source: company filings DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 33 MARKET FORECASTS MARKET FORECASTS Market value forecast In 2014, the European food retail industry is forecast to have a value of $2,477. 4 billion, an increase of 49% since 2009. The compound annual growth rate of the industry in the period 2009–14 is predicted to be 8. 3%. Table 17: Year 2009 2010 2011 2012 2013 2014 CAGR: 2009–14 Source: Datamonitor Europe food retail industry value forecast: $ billion, 2009–14 $ billion 1,663. 1 1,811. 4 1,978. 0 2,161. 3 2,359. 7 2,477. â‚ ¬ billion 1,196. 1 1,302. 7 1,422. 5 1,554. 3 1,697. 0 1,781. 6 % Growth 8. 5% 8. 9% 9. 2% 9. 3% 9. 2% 5. 0% 8. 3% DATAMONITOR Figure 16: Europe food retail industry value forecast: $ billion, 2009–14 Source: Datamonitor DATAMONITOR Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Pag e 34 APPENDIX APPENDIX Methodology Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: National/Governmental statistics International data (official international sources) National and International trade associations Broker and analyst reports Company Annual Reports Business information libraries and databases Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 35 APPENDIX Industry associations Global Food Marketing Institute 655 15th Street, NW, Washington DC, 20005 Tel. : 001 202 452 8444 Fax: 001 202 429 4519 www. fmi. org/ CIES — The Food Business Forum 7, rue de Madrid 75008 Paris FRANCE Tel. : 0033 1 4469 8484 Fax: 0033 1 4469 9939 www. ciesnet. com EuroCommerce Avenue des Nerviens 9-31, B-1040 Brussels, Belgium Tel. : 0032 2 737 0598 Fax: 0032 2 230 0078 www. eurocommerce. be Related Datamonitor research Industry Profile Food Retail in Western Europe Food Retail in Asia-Pacific Food Retail in the US Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 36 APPENDIX Disclaimer All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. Europe – Food Retail  © Datamonitor. This profile is a licensed product and is not to be photocopied 0201 – 2058 – 2009 Page 37 ABOUT DATAMONITOR ABOUT DATAMONITOR The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Combining our industry knowledge and experience, we assist over 6,000 of the world’s leading companies in making better strategic and operational decisions. Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment. Premium Reports Datamonitor's premium reports are based on primary research with industry panels and consumers. 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