MarketLine Blog

Posts written in April 2013

Agrochemical majors hit by EU’s neonicotinoid ban

MarketLine

On 29 April 2013, the European Union voted on the fate of neonicotinoid pesticides. Although there was insufficient support for a total ban, the EU Commission is to impose a two-year restriction on their use, which could begin as soon as July this year. Under the new rules, farmers will only be able to use these pesticides on winter wheat and crops that are unattractive to bees. Countries such as the UK, which had argued against the ban, will not be able to opt out. The reason for the restrictions… Read more

Brazil Seizing Opportunities for Market Development in Orange Juice Sector

MarketLine

Brazil is the world’s largest orange grower and orange juice producer and three out of five glasses of orange juice consumed in the world are produced in Brazil. While the country has achieved a leading position in the global market due to its long history of research and investments, it is now facing the challenge of decreasing consumption rates in the most important international consumer markets for Brazilian orange juice. This article examine the reasons why consumers are replacing orange juice with other types of beverages, and what strategies need… Read more

Mars Missing Opportunities in Evolving Consumer Trends

MarketLine

The Mars confectionery brand suffered a decline in UK sales in 2010, despite significant investment in a marketing campaign that coincided with the 2010 World Cup. Various reasons have been suggested for the brand’s declining sales; these include the poor performance of the England football team in the aforementioned football tournament having a negative impact on Mars’s primary marketing focus for the year, and variants of the Mars Bar brand – such as Mars Delight and Mars Planets – underperforming. However, given that the company’s flagship Mars Bar has also… Read more

Manufacturers in Personal Care Market Adapting to Demands

MarketLine

Unit-dose packs have achieved wide acceptance in categories such as laundry detergents and pharmaceuticals, but progress has been slow in the personal care sector, despite opportunities to add value. This article analyzes the key consumer trends influencing demand for unit-dose packaging within the sector, and examines the extent to which consumer demand for convenience conflicts with concerns over price, performance, and over packaging. This article identifies the key consumer trends that impact upon demand for unit-dose packaging within the personal care sector. It identifies that: Unit-dose packs align well with… Read more

Post Recessionary Opportunities for Calorie Conscious Snacking

MarketLine

The launch of Kraft Foods’ 100 calorie Oreo Thin Crisps in 2004 kick-started the 100 calorie food trend and marked a US snack revolution. However, after five consecutive years of market growth, this snack segment is now dwindling. Perhaps surprisingly, this comes at a time when both weight management and convenience remain core consumer issues. This case study will examine both the consumer and market issues that together will determine the future success of this currently diminishing category. In response to rising obesity levels, enhanced working pressures, and an increasingly… Read more

Inditex: A Trendsetter

MarketLine

Industria de Diseno Textil SA (Inditex) was founded in 1963 by Amancio Ortega Gaona. The group opened its first Zara shop in 1975 in A Coruna, Spain and has now become a renowned apparel retailer around the world. The company has successfully evolved its fashion lines and markets its range of products through eight sales formats: Zara, Bershka, Pull and Bear, Massimo Dutti, Stradivarius, Oysho, Zara Home and Uterque. According to MarketLine the global apparel retail industry is forecast to grow at a moderate rate representing a compound annual growth… Read more

Manchester United: Number 1 on and off the field

MarketLine

As the 2012/2013 Premier League season draws to a close, it looks very much like Manchester United is going to regain the right to call itself the best team in the land. Surely not even the club that loves to make things hard for itself can throw away a 13 point lead with only 5/6 matches remaining? The club’s success is not, however, limited to the field of play with financial data related this week showing that the club is by far and away the Premier League’s number one when… Read more

BSkyB Increasing Market Share in the Face of New Threats

MarketLine

British Sky Broadcasting Group plc (BSkyB) is active in the UK wholesale pay-TV market through its subscription television service Sky. It is the market leader in this area with a market share of 70%.  In recent years, the company has also diversified its operations to include fixed-line telephony and broadband services and has been successful in establishing a significant presence in these markets. This case study shows how BSkyB has achieved this. The Sky brand has become synonymous with technological advancement and product innovation. The launch   of pioneering services such… Read more

Tesco’s Grocery Retail in the US

MarketLine

In 2007, UK based company Tesco PLC entered the US grocery market with its Fresh & Easy stores. This article will examine Tesco’s market entry, performance, the difficulties it has faced, and what the future holds for Fresh & Easy. On the surface, the US grocery retail market is an attractive prospect to potential new entrants. It is massive in size and scale compared to the UK, and has the potential to provide huge returns. In reality, grocery retailing in the US is a tough, highly competitive industry where market share… Read more

How Tesco Became the UK’s Largest Retailer?

MarketLine

Tesco is the largest retailer in the UK and dominates the UK food and grocery market, accounting for almost a third of all grocery sales. This article examines the factors that have led to the growth of the company as the UK’s number one retailer. In 1995, Tesco overtook Sainsbury’s to become the UK’s largest retailer. Since that time the company has grown from strength to strength, widening its lead year on year. The unrivaled success of the Tesco Clubcard in building customer knowledge and generating loyalty has been fundamental to… Read more

How did Tata Motors Made Feasible to Launch World’s Cheapest Car?

MarketLine

Tata Motors is a major player in the Indian automotive industry. In 2008, it launched the Tata Nano, the world’s cheapest car’. Tata judged that it would be ideal for India’s growing middle class. This report considers how successful this decision turned out to be. The Tata Nano was conceived, designed, and marketed with a near-exclusive focus on cost reduction. As a result, the basic model sold for about half the price of the next-cheapest competitor produce. It was received with strong initial order volumes, and awards from the automotive… Read more

Google settles and wins in Brussels

MarketLine

Although Google is now — for the first time in the company’s history — giving in to proposed constraints on how it presents its search results, the company is clearly the winner in a three-year investigation involving both US authorities, the EU commission, and what can be called effectively the ‘litigants’: rivals Microsoft, Expedia, and other big tech affected heavily by Google’s search algorithms. Under the terms, contained in a draft deal formally submitted this week, Google will be under affective constraint to not only label its own specialist search… Read more

Betfair – From Start-up to World’s Largest Betting Exchange

MarketLine

Betfair is the world’s largest internet betting exchange offering betting options in a wide range of markets as well as financial spread betting, casino games and arcade games. The company is based in Hammersmith, West London, England. Since Betfair was launched in June 2000 it has become the largest online betting company in the UK and the largest betting exchange in the world. The company now processes over five million transactions a day from its three million registered customers around the world. The company employs approximately 1,200 people in the… Read more

Santander Becoming a Major Force in the UK Banking Sector

MarketLine

Banco Santander is one of the largest banking groups in the world with operations in Europe and the Americas. The group has a powerful presence in the territories in which it operates and the UK is no exception. Santander UK plc is a wholly-owned but separately capitalized subsidiary of Banco Santander. This case study shows how the Spanish giant has risen to a position of prominence in the UK banking sector. Santander has established a significant presence in the UK predominantly through acquisition. The process began back in 2004 with… Read more

Netflix: Challenging the dominance of cable television

MarketLine

Following competition to its video internet streaming and rental services, Netflix, Inc. (Netflix) has started to produce original programming for sole distribution on its service. Notably, this means that the company has started to follow a similar model to Home Box Office (HBO), a subsidiary of Time Warner Inc., which is a premium pay television service available through cable. Netflix’s latest movement towards integrated content production and delivery serves as a threat to established players within the cable space. The first season of Netflix’s first major original commission, House of… Read more

Penguin Random House merger cleared by European Commission

MarketLine

The proposed merger of Penguin Random House has been given the go ahead by the European Commission. The deal was announced in October 2012, and the US authorities had cleared it in February.  With two of the major competition authorities passing the deal, it looks probable that this paves the way for the creation of one of the largest global publishing companies. The deal will merge media group Bertelsmann’s Random House and publisher Pearson’s and Penguin into one unit, with Bertelsmann owning 53% and Pearson 47% respectively. It would merge… Read more

Retailer HMV saved by Hilco

MarketLine

The collapsed retailer and iconic music vendor HMV has been rescued, as predicted, by restructuring expert Hilco. Although no figure has been announces officially, the deal is expected to be worth around £50m, and by itself will save 2,643 high street jobs and 141 stores. When the music giant went into administration – overseen by Deloitte – the firm employed 4,123 people spread over 223 stores: employees and stakeholders might say it could have been worse. For those unfortunate employees being made redundant or being given the ‘opportunity’ to relocate… Read more

Kindle Fire to Challenge Apple iPad

MarketLine

According to third-party reports available online, the growing sales of the Amazon Kindle Fire potentially took away revenue from sales of anywhere between 1 and 2 million units of the iPad in the fourth quarter of 2011. The comparison between Kindle Fire and iPad 2 may seems a little unjustified in technical aspects, as the latter’s technical features are way ahead, but when it comes to market statistics Amazon Kindle Fire is challenging Apple’s tablet. Despite not having as many high-end features as the iPad 2, Kindle Fire has been… Read more

Remicade, a Biotech Blockbuster in Treating a Variety of Immune System Diseases

MarketLine

Remicade is a drug used in treating a variety of immune system diseases, and its active ingredient is produced through biotechnology.  Johnson & Johnson reported Remicade sales of $4.6 bn in 2010, and the drug is the best-selling “biologic” in the world. This article examines its long journey from an academic research laboratory to a leading position in the pharmaceutical market. In 2010, the world’s best-selling biologic drug was Remicade. Since its original US Food and Drug Administration (FDA) approval as a treatment for Crohn’s disease in 1998, global sales… Read more

Rising Demand for Urban Transport

MarketLine

Europe’s transport markets are liberalizing, and as incumbent operators anticipate increased competition in domestic markets they are looking for opportunities abroad. In 2011, French urban transport company RATP began operating a bus company in London, and acquired the light rail contract for Manchester, UK. This article will examine its strategic motivations and the outlook for its UK operations. RATP, like other European transport players, is expanding outside its domestic market. As European Union rules allow competitors to access their domestic markets, incumbent transport companies are looking to compensate by diversifying their… Read more

Hydrogen-Powered Cars Seem to Be the Future of the Motoring World.

MarketLine

Honda Motor is one of the leading manufacturers of automobiles and the largest manufacturer of motorcycles in the world. The company also provides a range of financial services to its customers and dealers. The company has 390 subsidiaries and 102 affiliates all over the world. Since 1999 Honda has worked on fuel cell vehicle prototypes, with FCX-V1 becoming the first mass produced hydrogen-powered car. The future of cars powered by hydrogen is an exciting prospect. First of all, hydrogen as a fuel produces zero CO2 emissions. In addition, the development… Read more