Date post: | 22-Nov-2014 |
Category: |
Business |
Upload: | ashleysaccoccio |
View: | 591 times |
Download: | 0 times |
W 1 C 3San Diego State University
Today’s Objectives• About our Company
• Operating Results
• Original Objectives and Strategies
• Deviations
• Forward looking statements
Company Description
Brainstorm Nutrition Develops, manufactures, and distributes a full line of healthy on-the-go protein bars, energy drinks and fruit juices for the health conscious consumer
Where Can You Find Us?
– Henrys– Trader Joe’s– Whole Foods
Company DescriptionVision
• To revolutionize the health food industry.
Mission
• To provide great tasting and innovative nutritional supplement bars and drinks that enable consumers to achieve optimal health and wellness goals.
Products
Business Strategy
Marketing Objectives
• Goals:-21.3% market share by end of year 7. – Market leader in Advertisement– 20% annual sales growth through end of
year 7– Introduce new product model each year
Marketing Strategies
• Strategies• Pulsing Advertising Strategy– The “Zone Pricing” Model– Market Segmentation Target Market-Men and Women Students ages 18-25-Men and Women Working Professionals ages 25-35
Results: Market Share
Results: Gross Sales
Results: Advertising Expense
Operations• Objectives
– Top two in R&D
– Two new Savings Levels each year
– Shift production to Pandau
– Low ending inventory
• Strategies– 15% R&D budget increase per quarter
• Two metrics
– 8% training budget increase per quarter
– One Pandau line every other quarter
– Low safety stock / accurate forecasts
Operations
Results: R&D Expenditures
Results: Return on Training
Results: Unit Production Cost
Results: Production Lines
Y3 Y4 Y5 Q1 Q2 Q3 Q4
Home 6 6 6 6 7 7 7
Pandau 0 3 3 3 5 5 5
2nd Shift 1 0 3 3 4 4 4
Deviations
• R & D
• Second Shifts
• Inventory
Human Resource Strategy
• Goals– Employee Retention– Training– Sales force equilibrium
• Strategies– Sales Force studies– Annual and quarterly raises
Finance• Objectives
– 22% Profit Margin– Achieve top credit rating– 13% ROI– Minimum cash balance > COGS
• Strategies– Internally Funded– Repurchase stock and bonds
Results: Net Income$000’s
Results: Stock Price
Results: Investor ROI
Deviations from Strategy
Looking Forward
• Run Models longer• Smooth price increases• Increased safety stock• Maintain market share• New Model introduction
Key factors of Success
• Information is key• Moderate pricing strategy• High marketing and RnD budget• Minimizing production cost
– Pandau plant– Savings level through training
Looking forward…
• Long-term capacity established• Highest advertising moving into Y7• Continuance of original strategy
– Competitor’s Actions– Fight for every inch
• New goals – Ambitious/Attainable
Deviations from Strategy
• Large sales increases that defied market trends.
• Danger of stockout• Advertising and RnD “wars”
– Brick Street Journal– Large increases across industry