MarketLine Blog

Posts written in April 2014

Avon’s expansion in emerging markets

MarketLine

Avon’s door to door sales strategy is key to its success and one which sets it apart from its rivals such as L’Oreal, Estee Lauder and Elizabeth Arden which sell products through department stores and specialty shops.  Door to door sales are particularly popular in Brazil, In fact leading Brazilian manufacturer of beauty and personal care products Natura decided to follow the success of Avon’s Brazilian operations and employed a door to door sales model. Research findings from MarketLine in 2012 found that Avon holds a larger market share than… Read more

David Moyes Sacked as Manchester United Manager

MarketLine

On April 22nd, Manchester United finally brought an end to the unhappy and unfruitful 10 month reign of manager David Moyes. Moyes took over from Sir Alex Ferguson in June 2013 after the Scot had led the club to its 13th Premier League title, but in truth looked overawed by the size of the job from day one. Moyes struggled to cope with the intense media scrutiny and the expectation levels at one of Europe’s elite clubs. While the playing squad undoubtedly needs a major overhaul, Moyes must take some… Read more

China sets the pace in the global software industry

MarketLine

Despite continued piracy issues, the seemingly perpetual innovations in the technology sector and the spread of internet usage both help to drive solid growth in the global software market. The global software market grew by 6.1% in 2013, to reach a value of $554.5bn, representing a compound annual growth rate of 11.3% for the period spanning 2009-2013. Although growth has largely been seen across the board, increases were primarily driven by growth in the Asia-Pacific and Americas regions, as some European economies stagnated and demand for software remained relatively stable…. Read more

2014: a year of transition at Teva

MarketLine

Teva Pharmaceuticals is a global leader in the pharmaceuticals industry, providing medicines to people all over the world. Teva is a giant in generic medicine and is the number one global producer of generic drugs worldwide. In Teva’s 2013 Annual Report, it stated that it was one of the top 10 pharmaceuticals companies in the world. One of Teva’s best-selling products, and the source of much of their transition, Copaxone, is used for relapse-remitting multiple sclerosis, an autoimmune disease which affects the central nervous system, damaging the nerves of the… Read more

The global medium & heavy trucks industry posts strong growth in 2013

MarketLine

Despite the on-going financial difficulties being experienced in many nations around the world, demand for medium & heavy trucks has continued to grow, with strong growth experienced in 2013. The global medium & heavy trucks industry grew by 7.5% in 2011, to reach a value of $209.8 billion, representing a compound annual growth rate of 9.9% for the period spanning 2009-2013. Stronger growth was experienced in the smaller markets – the Americas and the Middle East and Africa, although growth was strong in the largest market, the Asia-Pacific. Growth was… Read more

Loyalty programs utilizing big data analytics to improve CRM for retailers

MarketLine

Loyal customers are indispensable if retailers are to succeed. According to the Chartered Institute of Marketing, it can cost between 4 and 10 times as much to acquire a new customer (primarily through marketing costs) than it does to retain an existing one. Recognizing the benefit of loyal customers, responsible for around 55%-70% of revenues according to the Center for Retail Management at Northwestern University in the US, retailers developed loyalty programs very early on. From early beginnings in Germany to get around a government ban on price competition, to… Read more

Emphasis on food is shifting from nutrition to function

MarketLine

Scientific research has typically focused on the primary role of food as a source of energy and nutrients to build up the body. However, in recent years there has been a shift towards the impact that certain food components can have on human health. There has been a wealth of research to support the idea that diet and lifestyle contribute to health and may play a role in some human diseases. The concept of food being linked to human health is not new and has been reported throughout history. During… Read more

Financial services from Facebook?

MarketLine

Is Facebook planning to enter the European money transfer market? Yes, according to a report in the Financial Times that has been widely disseminated in the media. If so, it’s a bold move, but potentially a highly lucrative one. Let’s look first at the lucrative bit. The global money transfer market is huge and growing. One driver is remittances: money sent home by migrant workers. The figure below shows net transfers (inflows minus outflows) for several regions of the world. It is clear that between 1990 and 2010, there has… Read more

Market unimpressed by Peugeot Citroen recovery plan

MarketLine

The French auto group Peugeot Citroen gave little comfort to investors despite presenting a global recovery strategy aimed at building a money-making culture within the business. Having made net losses of €7.2 billion ($10.0 billion) in the last two years, the group released a strategic plan titled “Back in the Race”, and emphasized ambitions to grow in China and South-East Asia. Traders were less than impressed with the changes however which they saw as too little too late and this was reflected in PSA Peugeot Citroen share price which ended… Read more

BlackBerry: clinging onto consumers through BBM

MarketLine

BlackBerry’s dire financial results have dominated headlines over the past year, leading to speculation about its future as a business. BlackBerry 10, its latest operating system, has failed to recapture the consumer market, and recent rumors of the company exiting the hardware market, have been circulating. Although it appears that BlackBerry has lost the consumer hardware battle to Apple and Google, there remains one artifact of its original popularity: BBM. As discussed in the MarketLine Case Study, BlackBerry Limited: Does it have a future in the consumer market?, BlackBerry is… Read more

Segmented marketing driving Inditex’s growth

MarketLine

In FY2013 Inditex reported strong like for like sales with an increase of 3%. At the end of FY2013 Inditex had grown its operations to 6,340 stores in 87 markets. Under the company’s segmented marketing strategy, each brand tailors its product offering to separate groups and enables catering for multiple customers, allowing Inditex to maximize its consumer base. Prior to the development of market segmentation, mass marketing was the prevailing method; which meant the same product and marketing mix were offered to all consumers.  Inditex adopted the segmented marketing approach… Read more

Euro Area Malaise

MarketLine

The pace of economic recovery in the Eurozone is yet to gain momentum. Real Gross Domestic Product, which is the gross income of the entire region, rose by 0.1% in 2013, following a decrease of 0.4% in 2012. However, according to the latest projections of the European Central Bank, “a gradual recovery in domestic and external demand is expected to be the driving factor behind the projected sustained increase in activity in 2014.” Let’s not forget that the financial crisis has had a permanent impact on the Gross Domestic Product… Read more

UK new car sales surge

MarketLine

If you want a quick way to judge how an economy is performing, you could do a lot worse than look at how new cars are selling. For most of us, a car is a considered purchase, not an impulse buy. It may require us to dig deep into our savings, or take out a sizeable loan. These are not actions we are likely to take if we see a salary freeze or unemployment looming. As a result, the number of cars sold is highly sensitive to macroeconomic conditions: during… Read more

Sudden End To Kingfisher’s Reign

MarketLine

Kingfisher – popularly known as King of good times – was established in 2003 by the liquor baron Dr. Vijay Mallya, who named the company after his favorite beer. After a modest start in 2003, Kingfisher managed to quickly build a strong brand and high visibility, by becoming the first ever player in the Indian airlines industry to operate in the lucrative niche of premium domestic flights and rapidly growing its base of happy customers. The company made all efforts to make the flight and the whole travel experience as… Read more

As IPCC warns of incoming climate change danger, Australia’s Abbott throws caution to the wind

MarketLine

A March 2014 report from the UN on the impacts from climate change appears to haven been ignored by the current Australian government, which is pressing ahead with many ecologically detrimental projects. The UN’s Intergovernmental Panel on Climate Change (IPCC) issued stark warnings from Kyoto in their report on potential consequences of environmental change. The planet’s temperature increases will impact society, the environment, and the economy in a profound manner, with food security a primary concern in the future. Furthermore, the impacts combined with existing problems of poverty and economic… Read more

England’s new football kit: Fans react with disgust

MarketLine

Yesterday (March 31st), the FA and Nike proudly unveiled the new football kit that will be worn by the England national team at this summer’s World Cup in Brazil, but fan reaction was not what they had been hoping for. The new all white kit, so proudly modelled by Premier League superstars such as Wayne Rooney, Jack Wilshere, Steven Gerrard, and Raheem Sterling, is the second England team strip manufactured by US sportswear company Nike, which pays a reputed £25m (approximately $39.6m) for the privilege of being the team’s exclusive… Read more