Who was to blame for the banking crisis Essay Example | Topics and Well Written Essays - 2500 words

Who was to blame for the banking crisis - Essay Example After the Great Depression of 1930 the world economy faced a dangerous financial crisis. It all began when sky rocket property prices in the United States started decreasing and this impact soon spread all over the financial sector. The Global Financial Crisis initiated in July 2007 with the credit crunch when US investors lost confidence in the investment of mortgage property. This all compelled US investors to inject a large portion of capital into the financial market. By September 2008 the crisis got worse and hit all stock markets globally and made the market volatile. The consumers started losing confidence in properties and the stock market and were in a position of fear what could be lying ahead of them (Broman, 2012). The banking industry has seen many fiscal crises in the past, the notable one of them being the one that started in the 1930. Since then many countries have seen ups and downs when it comes to their banking industry. The most recent one of them being that in 2007; which changed the perspective of many investors and regulators. It all took one Lehman Brothers to go bankrupt for the Wall Street crisis panic to spread worldwide and affect other countries, developing or developed. The causes were smaller in person and unimportant but together, they caused huge economies to collapse and endure great loss. The reasons were as followed: On a general note, the global financial crisis began developed its roots in 2007, July, when the US investors started to lose confidence in the values of subprime mortgages, resulting in a liquidity crisis. This lead to the US federal bank adding a notable sum of capital into the financial market but nevertheless, the issue persisted such that by 2008, the stock markets around the world became seriously volatile and subsequently crashed. The Global market braced them for they feared the impending doom that approached them. Questions pertaining to the liquidity of banks, a fall in the availability of

Microsoft and Antitrust Essay Example | Topics and Well Written Essays - 500 words

Microsoft and Antitrust - Essay Example I therefore agree that Microsoft attempt is one of gaining monopoly power in the software industry. The windows operating system and the internet explorer browser are completely different products that should not be bundled together (Evans, 2002). Microsoft decision is thus one that denies fair competition from other browsers and their restrictive licensing is monopoly intended. In a pure monopoly one firm has the complete control in the production of their products because of barriers of entries for other businesses. There is therefore no competition in the industry and the pricing is not based on the forces of demand and supply. I am against monopoly structure because it promotes inefficiencies and discourages competition. Consequently, monopoly products are of low quality and are highly priced hence encouraging consumer exploitation. In a monopoly, prices and quantity demanded is set at the point of intersection of the marginal revenue and marginal revenue curve. If the marginal cost cuts the marginal revenue curve from the lowest point possible, it means that the firm is operating at optimal capacity and there is no room for expansion and it is at this point that the profit is maximized (Fellner, 1949). Since the demand curve is downward sloping, a reduction in price is accompanied by a corresponding increase in the quantity sold. The firm is therefore the price marker and therefore records high economic profits. Monopoly also deprives consumers their sovereignty of choice, as there are no substitutes for the company’s products. Failure or conditions that can halt the production of a company’s products will therefore result in acute shortages. Monopoly pricing coupled with artificial shortages to the society will result into dead weight loss to the society (2009). The locative inefficiencies in monopoly lead to loss by the society. Moreover, monopolies have been

Marketing Essay Example | Topics and Well Written Essays - 2000 words - 5

Marketing - Essay Example New product development process Idea Generation Idea generates from different sources. It may be by the influence of the competitor or from the customer. Ideas can be either generated from the internal source like through research and development or from the outside sources like competitors or market research agencies. For example with technological development new types of DVD players are in idea generation process which will play high capacity Forward Versatile Disc or FVD of around 6 gigabyte capacity (Grewal, 2008, p. 308). Idea Screening Sometimes too many ideas are generated which needs to be evaluated and then screened which are not very promising one for the company. The Idea screening process of the foremost U.S motorcycle manufacturer, Harley-Davidson is known as â€Å"The Wall of Fire† who screens different ideas to choose the best out of the development opportunities called â€Å"The Swirl† (Karol, Nelson, 2007, p. 118). Concept Development and Testing The i deas which are screened in the idea screening process are forwarded for the concept development and testing of the screened idea. Ideas can be very beneficial for the company in many cases for which proper testing of the concept is required for its feasibility study. In automobile industry Tata Motors conducted a market research in order to find the gap in the market for its fall in the market share of truck during the year 1998 to 2000. It showed that consumers want a to have a car like vehicle but it can perform like a truck which can carry heavy weights for different purposes (Kumar, 2007, p.29). Marketing strategy development After concept testing the marketing strategies like the description of the target market, distribution channels, pricing policy, advertising, marketing mix strategies and profit in long run are evaluated and managed. For example Unisys identified the need of the customers then developed the project management process after analyzing the feasibility, develop ment qualification etc (Lambert, 2008, p. 151). Business Analysis In the business analysis process the proposal for the development of the product is made along with the cost of development, marketing, manpower resources, technical needs, replacement cycle and the estimated sales forecast. Harley-Davidson eliminated the suppliers who only provide them with prototypes and improved their sales with the direct design technique after analyzing the business process (Lambert, 2008, p. 156). Product Development With the acceptance of the business analysis the next stage is the actual product development which translates the idea into real world entity from drawing. Prototypes are often made for different products in order to understand the feasibility through thorough testing process. Like in case of Ice cream maker Ben & Jerry’s they alpha tests their new flavors range amongst the employees of the firm for their feedback (Grewal, 2008, p. 311). Market Testing With successful testin g process and feedback from the prototype the actual final product are made and research is done from the review of the customers. The disadvantage of market testing is that, the competitors came to know about the new product and they can act accordingly. As for example Coca-cola conducted a market testing by launching small eight ounce cans of soda for Coke, Sprite and various other products in Chicago regions. (Grewal, 2008, p. 313) Commercialization / Product launch Market testing process is very essential to decide whether to move for the product launch or commercialization. If any things need to be altered in the product it is done in this stage to suite the market demand (Boone & Kurtz,

Make It Mine - Customization as the Future of Luxury Essay Example for Free

Make It Mine Customization as the Future of Luxury Essay 1 â€Å"The things at Prada today are not well made, the fabrics are not as good, everything was much better in my time† Miuccia Prada I. Purpose of Research The changing landscape of the luxury industry challenges brands to find a new approach to reach out to their core costumers. Brands like Louis Vuitton, Gucci or Burberry are about to jeopardize their true customers and their image by overexposing themselves to a mass luxury clientele. Thus, a new approach must be found to bring back the feeling of true luxury, personal attention and to create a bond to their core customers. This paper’s purpose is to examine how luxury brands can adapt mass customization techniques in order to create a sustainable competitive advantage and bring back the notion of true luxury. Furthermore, it will be questioned if customization can harm a luxury brands image and status, taking into consideration the â€Å"anti-laws† of marketing, which propose to not pander to the customer’s wishes and to dominate the luxury client (Kapferer, Bastien, 2009, 64 f. ). The goal is to come up with a conclusion that provides luxury brands with a direction of how customization could be implemented and what benefits or challenges may come with it. II. From Class to Mass Looking at today’s luxury fashion market one does not have to be an expert like Miuccia Prada to see things have changed. While almost every established luxury brand started out as a small business with a tradition of unique craftsmanship, utmost quality, best service and limited quantities, those attributes are not necessarily true for many of today’s still existing luxury brands. Luxury brands have gone mass. This is often referred to as â€Å"the democratization of luxury†, which means 2 that luxury brands have opened themselves for a mass market. While back in the day luxury brands were the domain of the rich only available in selected stores or brand owned boutiques, brands today want to reach a wider customer range. According to Thomas, aggressive growth was not a priority until the eighties (Thomas, 2007, 238). However, growth quickly became the main objective and store expansions have experienced a boom in Japan, as well as the USA. The middle market customer was born. By expanding their assortment lines in department stores with lower-priced items, such as perfumes, small leather goods and cold-weather items, luxury brands became attainable. No longer were people intimidated to walk into a luxury boutique, they often became tourist attractions in capital cities. Luxury brands were intrigued by the sudden success. It just took a few logo-covered products, which were the middle class’s favorite item and sales and profits grew steadily. However, the rapid expansion also created one of the luxury brands biggest problems today. As banking analysts conclude, the greatest problem that luxury brands have created for themselves by going mass is financial instability. â€Å"Before its global expansion to the middle market, luxury was immune to economic cycles. The companies were small and catered to a limited old-money clientele [†¦] who shopped consistently and bought well. Luxury was a successful niche business. But when luxury changed its target audience to the cost-conscious middle market that shops when flush but stops cold when times get tough, it made itself dangerously vulnerable to recessions† (Thomas, 2007, 264). Another disadvantage from overexposing themselves is the loss of the traditional old money clientele, since their logos could be seen everywhere. Many brands jeopardized their exclusivity status along with their â€Å"well-crafted† message along the chase for higher profits, in order to keep the shareholders happy. The dilution of the luxury status peaked with the 3 introduction of e-commerce and outlet stores. In the first case it is very hard for a brand to create a luxury shopping experience, since the Internet is a generic and impersonal sales channel. In the case of outlet stores, brands are trying to sell their overstock, which has highly increased due to mass production. Not only is merchandise that was once available at a high-end boutique sold for a discount price, moreover some brands are producing some items solely for outlets (Edouard, 2006, 11). Assessing the six main facets of a luxury brand, which have been identified in a broad empirical study by Dubois/Laurent/Czellar and are considered to be global and most accurate, one can review the situation of the luxury market today. The six main facets are (Dubois/Laurent/Czellar, 2001, 8 ff. ): †¢ Very High Price (according to the absolute price (inter-categorical) as well as the price relative to other brands of the same category (intracategorical)). Excellent Quality (according to the processed materials as well as the assumed diligence of the manufacturing-process). Scarcity Uniqueness (expressed by a difficult accessibility and rarity). Aesthetics Polysensuality (creating through design, colors etc. a value experience that touches all senses). Ancestral Heritage Personal History (continuous branding in design, communications etc. ). Superfluousness (dominant perception of symbolic attributes †¢ †¢ †¢ †¢ †¢ compared to technical-functional ones). It is evident that at least two of the six facets, namely Excellent Quality and Scarcity and Uniqueness, are not fulfilled in many cases anymore. Industry experts suggest that the last true luxury brands that are living up to all the standards are Hermes and 4 Chanel (Thomas, 2007, 323). Hermes is the epitomization of luxury, which is highly due to the fact that the house is still making all its products by hand, sourcing the finest materials and using special design and production techniques that have been invented from the house’s founder over 150 years ago. However, there is another reason why Hermes is on top of other luxury brands: Customization. Unlike in most luxury boutiques, Hermes only receives a few handbags each season to sell them directly. However, this is the exception. The rule is that those handbags are just a display of options. The customer can choose the material (canvas, cowhide, reptile or ostrich), the color and the hardware and in case of the Kelly bag the seams (Thomas, 2007, 172). And then you wait for a product that is specifically tailored to your taste and needs. Obviously this is an experience that real customers highly value. The next chapter provides a brief overview about the luxury consumers today and examines the need to offer separate services for each customer type. III. The Luxury customer today â€Å"Today’s luxury consumer is different from the wealthy consumer of the past. † (Okonkwo, 2007, 65) As mentioned above, many luxury brands opened themselves for the middle-class customer. Silverstein and Fiske have extensively described the evolution and habits of these consumers in their book â€Å"Trading up† (2005). Amongst those â€Å"mass wealthy† consumers, the spending on luxury goods has increased tremendously due to a rise in real household income by 30 percent since 1970. Looking at the figures, four million American households had a net worth of more than $1 million by 2005 and the average spending increased up to 70% (Thomas, 2007, 239). Parallel to this the credit card debt reached its peak. What happened to all that money? Consumers 5 traded up and luxury brands catered to their new audience. While the old-money consumer had a deep appreciation for quality and craftsmanship, the new luxury consumer wanted to buy into the dream and show that they could. Logos came in fashion, and soon â€Å"It† bags with the brand’s logo plastered on them could be seen everywhere and on everyone. Interesting enough brands and designers seem to embrace this trend, as Marc Jacobs states: â€Å"When you look at Louis Vuitton, you see it is mass-produced luxury. Vuitton is a status symbol. It’s not about hiding the logo. It’s being about a bit of a show-off† (Thomas, 2007, 18). Although welcomed by the brands themselves, this is a development that does not please a lot of the old luxury consumers and luxury brands are about to jeopardize their core clientele. Besides the love for the logo there are other characteristics that come along with the new luxury consumers. These are a need for a quick trend turnaround, a disposable attitude and the experimenting and mixing of luxury brands with premium and fast fashion (Okonkwo, 2007, 66). Thus, these consumers are not loyal to one single brand but shop across the entire brand hierarchy, from Gucci to HM. And they are not recession proof. While in the past luxury catered to a limited old money clientele enough money whose spending habits have not been deeply affected by economic cycles, short-term stock market drops or the dependency of credit available, the new luxury customer is very sensitive to all those factors. The luxury market as we experience it today is an amalgam of mass production1, flashy branding, highly varying quality and heavy advertising. While this might work for the middle class market, educated, real luxury consumers cannot be captioned by such techniques. 1 E. g. all Gucci leather products are designed on a computer, by 2004 the entire Gucci group produced 3,5 million leather goods a year, with a production time of two to three hours for a basic bag. Louis Vuitton’s handbags are produced in an assembly line setting in China, where it takes two minutes to glue handles on two bags. As a comparison, an average size Birkin or Kelly bag takes up to sixteen hours, while a bigger one takes up to thirty hours (Thomas, 2007) (Purseleague, 2010). 6 This paper acknowledges the importance of these new customers for luxury brands in order to keep the shareholders satisfied and the need for luxury brands to grow and make profits. If brands would stop cater to this clientele, the losses would be tremendous, since the brands made themselves dependent on high volume sales. However, it must also be considered that such practices can and will jeopardize the old luxury consumers, the ones who support the brand even in tough economic times. Thus, this paper suggests an approach to return to older notions of luxury, namely superb quality, classic design, premium service and customization. In short, the ultimate luxury experience. IV. Back to the roots â€Å"Luxury fashion brands today are too available, everything is too uniform, and customer business is too pedestrian. † Tom Ford Looking back in the history of luxury, customization has been the starting point for many brands and has always played a vital role in the brand’s identity. Hermes started out as custom-made harness shop, catering only to the aristocracy. Likewise Gucci, which started as a saddlery shop in Florence and later specialized in small custom made leather goods and luggage, while Louis Vuitton started as a Malletier for French Royals. All had in common that made-to-order items were the focus of their businesses and they offered only a small product range. Another big part of the customization history of luxury and probably the embodiment of the ultimate luxury item is the haute couture dress. Fittings were done by the couturiers themselves and the garment was constructed for one’s own shape, height and comfort. When American society ladies could not make it to Paris, the Couture houses would sell their patterns to stores like Saks or I. Magnin and fittings were done in beautiful 7 private fitting rooms to convey the Paris atmosphere. Shopping in those department stores was an experience, an event, a pleasure and sales assistants were experts, advisors and friends. Customers chose their favorites, either at in-house fashion shows or during personal viewings, and an in-house seamstress would alter everything to make the customer happy and fit the garment perfectly. This was a long time ago. As Thomas, points out, luxury clothing shopping today is more an exercise of patience, with only a few pieces in the smallest sizes on the sales floor, mediocre service and long waiting times (Thomas, 2007, 5). Buying an $8000 dress directly from the rack is a relatively new phenomenon, evolving with the availability and democratization of luxury. Reviewing the history of customization in the luxury industry, the following points can be identified that cater to a true luxury experience: Craftsmanship, high quality material, luxury service and customization. Based on these findings, the following part of the paper will develop a framework of customization for luxury brands today. It should be emphasized that the approach of customization is not catering to the luxury mass clientele, but rather to the true luxury customer, to create brand loyalty and recreate the luxury experience in the current market setting. V. Customization in Today’s Luxury Market One’s striving for uniqueness and expressing their individuality has without a doubt reached a peak in the current society. Some businesses have recognized this development and reacted accordingly, such as Dell, Apple, Levis, BMW or even Ralph Lauren. Especially luxury consumers always had the need to feel the exclusivity attribute of a service or a product and require personal attention. Luxury customers today do not want to follow a dictate by a brand, they are independent in 8 their choices and want to be involved in the creative process. As one author correctly stated, the days of uniformity and sameness are over (Okonkwo, 2007, 249). While Okonkwo is advocating a â€Å"mass customization† approach, which means that customization for luxury brands is done in bulk and offered to everyone, this paper suggests an exclusive approach of customization. Although economies of scale still play a role with the exclusive approach, it is not promoted to produce customized products en masse. This again would take way from the notion of rarity and exclusivity and would not help luxury brands to recreate a luxury experience, which is the purpose of this paper. It must be mentioned that a few luxury brands currently offer customization as they call it, however this is not customization to a degree that satisfies a true luxury customer. Louis Vuitton for example offers a â€Å"customization/personalization† service on its website, where customers can choose different colors for stripes and their initials to be drawn on a brown canvas bag. The whole process is done online, which delivers no luxury atmosphere at all and the aesthetics are not living up to a luxury brand and neither the leather, nor the hardware or lining can be altered. â€Å"Real customization† is only available for travel pieces. According to Gilmore and Pine, two customization experts, there are four different approaches for customization and managers should evaluate each to offer best service to their customers. In some cases not every approach is possible. The following part of the paper examines each approach and the possibilities for a luxury brand to utilize it (Gilmore/Pine, 2000, 116). 9 1. Collaborative Customization In this approach a company is conducting a dialogue with customers, so that they can articulate their preferences and needs. The goal is to identify a precise offering in order to satisfy these needs and offer a tailored product. 2 2. Adaptive customization In this case a standard product is offered, that the customers can customize themselves after the purchase. An example would be a watch where one can change the wristbands, such as the Gucci â€Å"U-Play Interchangeable Lizard Watch†. Fig. 1 Gucci â€Å"U-Play Interchangeable Lizard Watch† 3. Cosmetic Customization 2 [†¦] on an Air France flight from Paris to London Jane Birkin pulled her Hermes datebook out of her bag and all her papers fell out. She groused about how the book needed a pocket. Besides her sat Jean-Louis Damas. He took her datebook and she got it back a few weeks later with a pocket stitched inside, which is still there today (Thomas, 2007, 189). 10 Cosmetic Customization is not about the product itself but more about the packaging, the advertisement of different attributes or benefits of the product. Thus, a standard product is packaged and presented differently for certain markets. This can become especially important a retail environment where customized packaging plays a big role. Personalization, like adding the customer’s name would be an example for a cosmetic customization. 4. Transparent Customization This approach is used when customers do not directly communicate their needs, but they are easily predictable or can be easily deduced. Customers are provided with goods or services tailored for them, without letting them know that they have been customized for them. This type of customization requires constant monitoring and a deep understanding of the customers needs. It challenges brands to come up with innovative methods of data collecting. Fig. 2 The Four Approaches to Customization 11 Besides the different approaches of customization it must be mentioned that customization can be applied throughout the value chain, but it implies a company open for innovative approaches and careful management. Customized? Development? Customized? Production? Customized? Retailing? Customized? Delivery? Fig. 3 Possible Value Chain of a Luxury Brand Since it would exceed the scope of this paper to discuss every possible customization process that could be applied by a luxury brand, the following part outlines a scenario of customizing a luxury handbag for exclusive customers, taking every step in the value chain into account. In the development stage of the product, the customer would make an appointment in a luxury boutique, or be offered to have a designated expert of the brand come by a place of the customer’s choice. It must be mentioned that customization should only take place in selected brand-owned boutiques, such as flagship stores and never on the internet or a non luxury shopping mall (e. g. Lenox). In the case of an instore appointment, there should be a private room or section that is solely reserved for customization customers, including catering of exquisite snacks and drinks to enhance the luxury atmosphere. Unlike customization that is offered online, the customer should actually have all the materials that she can choose from in front of her, so she can feel and smell the different kinds of leather, fabrics, linings, hardware etc. As mentioned above, polysensuality is an integral part of a luxury brand, thus all senses should be addressed. The brand should provide multiple options to choose from of materials, shapes and sizes. However, if a customer has a special wish, e. g. 12 a color that is not available in the presented selection or a special lining wish, the brand should be able to provide it. On top of that personalization should be offered. Customers should be able to have their name, a quote, writing etc. on the bag at every place they want it. Anya Hindmarch for example offers customers the opportunity to write a personal message in their own handwriting that is discreetly embossed on the handbag in silver or gold, prices range from $1300 $9. 500 (Okonkwo, 2007, 262). Unfortunately, this service is only offered online, thus customers can’t feel the materials and have definitely no luxury experience. When the customization process is finished, the brand should have special software to show the customer on a big screen a model of what the creation will look like, so that last changes can be made. The design must be sent to an atelier, preferably in the country of the brand’s origin, where skilled craftsman are working on the items. Each bag must be identified with a number, the craftsman who worked on it and the material it was made from. Naturally a customized piece has a longer delivery time, for a handbag approximately 6-16 weeks, depending on availability of materials etc. However, since a customized item is considered an investment piece, customers are willing to have a longer waiting time. After the item has arrived in the store, cosmetic customization can be made at the point of retail by the sales assistant. In case of a bag or travel item e. g. the brand could attach a charm or a customized name nametag in the bag’s color to surprise the customer and show special attention. The packaging of the customized item can also be tailored towards the taste of the customer (the in-store customization expert should be aware of customer’s preferences or be able to find out during the design process, referred to as transparent customization). Along with the customized item the customer should 13 receive a letter from the store manager, which addresses the customer directly and shows the brand’s appreciation. Having a personal delivery service that brings the item directly to the customer can customize the last part of the value chain. To create the ultimate luxury experience the brand could additionally send flowers, truffles or wine to show appreciation for the customer. The process of customization outlined above is not limited to bags and can be applied to almost every item, shoes, jewelry, travel items etc. Obviously customization is a laborious process, thus the question arises which advantages does it have for brand have and is all the effort worth it? The basic question â€Å"Do customized products bring additional value to the customer† was widely discussed in academic literature. The findings of the latest study by Franke, Keinz and Steger suggest that the higher the customer involvement with a product is, the more value customization adds (Franke, Keinz, Steger, 2009, 115). Assuming that a luxury product already requires a high consumer involvement, due to its high price and the â€Å"dream value†, it can be concluded that customized luxury goods are adding value to the customer’s purchase. Amongst all advantages the most important one is the closer contact and relationship to your core customers, and a personal identification with the brand. The customer serves as a co-designer and in-house consultant during the customization process. The brand can learn about their customers’ taste and tap into their intellectual property, which results in higher potential of future design success. Empowerment of the customer leads to a higher customer satisfaction, which results in repeated purchases, less comparative shopping and overall brand loyalty (Okonkwo, 2007, 252). Especially in a globalized luxury landscape brands can satisfy customers in different parts of the world and react to cultural taste differences. As a conclusion it can be said, that â€Å"benefits of 14 customization are contingent on characteristics of the customer, namely his or her level of insight into own preferences, ability to express those preferences, and product involvement† (Franke, Keinz, Steger, 116). Although the advantages overweigh, it must be noted that customization also imposes challenges on a brand, such as the integration of the customization process into already existing internal processes and the value chain. Operations must be changed, functional units for customization must be established and the brand must invest in human capital, in order to have experts on both the retail and manufacturing side. Many companies will have difficulties overcoming current practices, since most luxury brands are now owned by big conglomerates, where they face a wall of bureaucracy. Besides that the collection of personal data from customers is a highly sensitive area of customization. First, data collection and analysis are not a core competence of luxury brands and many companies just started to use special software. Thus, problems could arise organizing and interpreting the gathered information. Second, although it can help a lot with future shopping assistance and marketing, luxury brands should never store personal data without the explicit permission of the customers. VI. Marketing in an Age of Diversity It is a given that an exclusive offer like customization needs an exclusive marketing approach. Therefore, all common marketing practices, such as fashion magazine advertisement, blogs, online marketing etc. are not an option. Since this customization is a costly service, the right clientele must be targeted. Thus, this paper suggests three marketing approaches to reach the luxury core customer. The 15 first strategy is to approach luxury magazines that are not directly fashion related. The selected magazines would include, but are not limited to: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ FT- How to spend it Town and Country Palm Beach Illustrated3 Architectural Digest Robb Report Unique Homes Luxury Living Dolce Vita Elite Traveler Prestige Instead of placing bold ads in these magazines, the marketing strategy should focus on creating interest by subtle advertisement. This could include product placement in an editorial spread that has nothing to do with fashion, e. g. a bag could be placed on a designer table in Architectural Digest. Placing the product in a special section like â€Å"most exclusive picks of the month† would be another form of subtle advertisement. If the relations to a magazine are very good, the brand could have the magazine featuring a story about most exclusive luxury items and place the customization service in there. It is crucial that prices or places where the customization service is offered will not be communicated. The magazine should only provide a phone number that connects the customer to the customization department of the brand, where all information will be available. Furthermore â€Å"price upon request† is an effective tool to create interest and the notion that a product is in a top price range and only available for a few clients. 3 Palm Beach Illustrated Magazine is an award-winning regional luxury lifestyle magazine, appealing to the worlds most sophisticated and ultra-affluent audience. The magazines content reflects the many facets of sophistication that set the Palm Beach market apart and gives the community its unique brand of panache. Focusing on cutting-edge fashion, the social and philanthropic scenes, the celebrities and fascinating personalities, the exquisite estates and interiors, as well as the luxurious retail and travel opportunities available in this unique region. 16 The second marketing strategy would be an exclusive catalogue, in which the brand introduces its new service to selected clients. That this service is not available to the broad public must be clearly communicated. Naturally the catalogue must be printed on high quality paper and must feature only very creative pictures from one of the world’s best fashion photographer, such as Andrea Klarin, Raya or Steven Meisel. The catalogue should inform the customers about the customization process, as well as provide examples of customized bags. Since luxury customers today have strong values and principles, the catalogue should include where products such as leather and silk are sourced as well as the place of production. The catalogues would be sent to already existing top customers, whose addresses the luxury brand should have in their data storage. Magazines such as Prestige, which only have subscribers over a certain net worth (starting at $2 Mio. ) could provide additional addresses of future customers. The catalogue must convey a luxury feeling through materials and aesthetics, so it does become a decorative book more than a disposable item. The last part of the marketing strategy would be an invitation only event that can be held in the best hotels of strategically important cities. With approximately 150-200 guests, the brand would exclusively introduce the customization service to their most important clients and high-society people of the city in a glamorous atmosphere. The brand could show a video about their history and heritage, leading the consumer back in the days when customization was the starting point of the brand. Exquisite catering and entertainment must be a part of the event, as well as a small fashion show that shows the brand’s latest collection with some of the customized items. The brand should have a customization expert on site, so if guests have questions about the service there is a person helping them directly. 17 VII. Financial Analysis The attached excel sheet outline a one-year cash flow plan for setting up the customization service in a first tier city flagship store. The $500. 000 start capital are sponsored by corporate. Travel expenses include travels to other flagship stores, the manufacturing site or to customers, who are out of town. As mentioned before, customized products do not impose any inventory costs on the stores. It is assumed that corporate takes over most advertising costs, however stores must support local advertisement, which can be seen in the expenses. Income taxes are assumed to be 25 percent of the sales, based on the information that in the US income taxes range from 10-35 percent. The sales figures are derived from the following price points of merchandise: Between $9. 000 and $85. 000 for a customized bag, $800 $5000 for customized shoes and $15. 000 100. 000 for customized travel items. Prices depend on leather, hardware, other materials such as lining and complexity of production. The high price points are set deliberately, to keep away non-enthusiast and protect the exclusivity of the service. The predicted sales figures are more conservative at the introduction phase of the customization service but pick up by the end of the 12 months, leaving the store with a profit of $648,700. 000 at the end of the year. December is supposed to have the highest sales figures, due to holiday business. VIII. Conclusion: Does Customization Take Away a Brand’s Authority? One reason why many brands are reluctant to change their current practices when it comes to customization is their fear of losing brand authority. As Okonkwo put it correctly, it is argued that if brands provide their customers with the tools to customize their products, they might lose their superiority appeal (Okonkwo, 2007, 248). Marketing guru Kapferer advises luxury brands to â€Å"Not pander to their 18 customers’ wishes† and to â€Å"Dominate the client† (Kapferere/Bastien, 2009, 64 f. ). However, looking at the roots of most luxury brands, with customization as their starting point, this advice seems to be outdated and ignorant to the trends in current society. Due to the latest development in the luxury markets, which have extensively explained above in chapter II- IV, denying customization to the customer seems to be narrow-minded and can seriously damage the brand on the long run. Since customization as discussed in this paper is not a means to please the masses, but to gain back the true luxury consumer who seeks an exclusive experience, the argument that the brand loses its superiority status is not applicable. The purpose of research was to examine if luxury brands could use customization in order to win back core customers and regain a luxury status. It can be concluded that with the right marketing approaches as well as with a management that is open for innovation, customization can be a great tool to optimize customer satisfaction and add value at every part of the value chain. If customization is executed correctly, it can change the luxury landscape to a situation where not only Hermes, but other brands with a long tradition of craftsmanship can be considered true luxury again. 19 References M. Edouard (2006), Revamping Luxury: Mass Customization Applied to the Luxury Goods Market. MBA Thesis, Massachusetts Institute of Technology. N. Franke, P. Keinz, C. J. Steger (2009), Testing the Value of Customization: When Do Customers Really Prefer Products Tailored to Their Preferences? , Journal of Marketing Vol. 73 (Sept. 2009),103-121. J. Holusha (1996), Making the Shoe Fit, Perfectly; Companies Use Technology to Sell to a Market of One, The New York Times. J. N. Kapferer, V. Bastien (2009), The Luxury Strategy – Break the Rules of Marketing to Build Luxury Brands. London: Kogan Page. P. Zipkin (2001), The Limits of Mass Customization, MIT Sloan Management Review, Spring2001, Vol. 42 Issue 3, p81, 7p.

Organizational Change Of Procter And Gamble Marketing Essay

Organizational Change Of Procter And Gamble Marketing Essay In these ever changing and highly competitive markets, there has been a considerable amount of research carried out into new product development and introduction. A successful new product launch is believed by many to be the recipe to business or firm growth and profitability depending on their ability to identify the needs of customers and to quickly create products that meet these needs and can be produced at a low cost. The next step is to analyse and develop the market plan. This is done by reviewing the 4Ps product matrix as a way to finding a unique position from which to create a competitive advantage for the product. Also, review the SWOT with Clients and utilize SMART technique to develop the written, working plan Executing the plan and launching the product. This includes developing collateral materials, begin placement discussion with the first stage in the ideal channel, have enough discussion with as many different entities with a view to uncovering any previously undiscovered real objections. Review and improve plan as necessary with the new information, repeat until sold, and explore link extensions with new partners. It should be noted that new product development and introduction plan is the first stage in the Product Life Cycle. It is created in stages, giving logical break points to force the decision to proceed or not based on what occurs at each stage. Aim and Objective The goal of this research paper is to present in a clear and detail way how the development and launch of household care products by Procter and Gamble (PG) Company is aimed at bringing together the marketing, design, strategy and manufacturing functions of the company and also to identify the overall profitability of the product. Companys Overview and History With its headquarters in Cincinnati, Ohio, Procter and Gamble (PG) Limited is one of the worlds leading giants when it comes to making household products. The company is engaged in producing beauty, health, fabric, home, baby, family, and personal care products. With commitments to remain as the leader in its market, PG is one of the most aggressive marketers and is the largest advertiser in the world. Many innovations that are now common practices in corporate America including extensive market research, the brand-management system, and employee profit-sharing schemes were first introduced at Procter and Gamble. Procter and Gamble Limited has an employee base of 138,000 or more and operates in nearly 80 countries around the world and markets more than 300 brands in over 180 countries; more than half of the companys revenues are generated overseas. The company recorded revenues of $83,503 million during FY2008, an increase of 9.2% over FY2007. The operating profit of the company was $17.083 million during FY2008, an increase of 10.6% over FY2007. The net profit was $12.075 million in FY2008, an increase of 16.8% over FY2007. History Procter and Gamble Company (PG) was established as a joint partnership business by William Procter and James Gamble, two immigrants from United Kingdom in 1837 with head-office in Cincinnati, Ohio. By 1890, PG was selling more than 30 different types of soap, including Ivory. In 1915, the company built a manufacturing plant in Canada, its first outside the U.S. During 1917-1918, PG established the chemicals division which function was to formalize research procedures and develop new products. Then in the 1920s the company discontinued the manufacturing of candles. KEY DATES AND ACQUISITIONS: c. 1851: The Companys famous moon-and-star symbol is created. 1878: PG introduces White Soap, soon renamed Ivory. 1885: Introducing Innovative Employee Benefits. 1890: The company was incorporated as Procter and Gamble Company. 1911: The debut of Crisco, the first all-vegetable shortening. 1931: Brand management system is formally introduced. 1946: PG introduces Tide laundry detergent. 1955: Crest toothpaste makes its debut. 1957: Charmin Paper Company is acquired. 1961: Test marketing of Pampers disposal diapers begins 1963: Company acquires the Folgers coffee brand. 1982: Norwich-Eaton Pharmaceuticals is acquired 1985: PG purchases Richardson-Vicks Company, owner of the Vicks, NyQuil, and Oil of Olay brand 1988: Noxell Corporation, maker of Noxema products and Cover Girl cosmetics, is acquired 1990: PG expands its presence in the male personal care market by acquiring Shultons Old Spice Product line. 1991: Max Factor and Betrix cosmetics and fragrance lines are bought from Revlon, Inc. 1992: Pantene Pro-V shampoo is introduced. 1993: Major restructuring is launched, involving 13,000 job cuts and 30 plant closures. 1994: Company enters the European tissue and towel market with the acquisition of the Germany-based company, Schickedanz. 1997: Company acquires Tambrands, Inc., maker of Tampax line of tampons 1998: Organization 2005 restructuring is launched. 1999: Premium pet food maker Iams Company is purchased. 2001: PG acquires the Clairol hair-care business from Bristol-Myers Squibb Company. 2002: Jif peanut butter and Crisco shortening brands are divested. 2003: Company acquires a controlling interest in German hair-care firm Wella AG. By 2004, the company announced its agreement to acquire the commercial business of Grupo Vita in Spain. In the same year, PG finalized the sale of its juice drink brands, Sunny Delight and Punica, to JW Childs Associates LP, a private-equity firm in Boston. This further paring of the food business left PG with just two main food brands, Pringles and Folgers. The snacks and beverages unit accounted for only 7% of the companys total revenues in fiscal 2004. At the beginning of fiscal 2005 PG realigned its business units, shifting it five previous units into three: global beauty care; global health, baby, and family care; and global household care. Pringles and Folgers were placed within the latter unit. During the fiscal 2004, sales surged 19%, surpassing the $50 billion mark for the first time. Net earning also jumped 25%, hitting $6.48 billion mark. The newly invigorated company continued its streak of paying dividends without interruption since its 1890 incorporation, and it also increased its dividends for the 48th straight year. And in July 2005, a proposed merger with the Gillette Company, a leader in male grooming product was completed and cleared by the European Commission. Literature Review Product planning should be considered as a key driver for the eventual manufacturing and development of a successful new product. It can mean both organizational entity and the process of planning the product which can involve many more departments in a company (Allen, 1993). The consistent investment in consumer and market research, innovation, brand-building and go-to-market policies has considerably helped Procter and Gamble Company achieve success in its new product development strategy and also achieve considerable market shares. This case continues with an insight into PGs product innovations that have been a success among the diverse segments of the global market. The company is organized into three Global Business Units (GBUs) and a Global Operations group for producing commercially viable products. The three GBUs are beauty, health and well-being, and household care. The Global Operations group consists of the Market Development Organization (MDO) and Global Business Service (GBS). Research Methodology The research methodology will be based on the qualitative analysis, i.e. on the presentation and the analysis of a series of findings retrieved by researchers in the literature (Internet sites, online newspapers, periodicals, books and other academic publications, journals). The presentation of appropriate primary sources (statistical indexes, graphs, and financial data) will be also used in order to support the views of the literature. In other words, the research will be mainly secondary mostly because of the objectivity of data involved. More specifically, the use of primary research would not be used for the purpose of this research. Chapter 1 Organizational Culture and Structure 1.0 Corporate Structure Procter and Gamble organization structure is an important part of their capability to grow. It combines the global scale benefits of a $79 billion global company with a local focus to win with consumers and retail customers in each country where PG products are sold. PG organizational structure comprise three Global Business Units (GBUs), Global Operations, Global Business Services (GBS) and Corporate Functions (CF) Fig 1: Four Pillars of Corporate Structure of PG Global Business Units (GBUs) focus solely on consumers, brands and competitors around the world. They are responsible for the innovation pipeline, profitability and shareholder returns from their businesses. Market Development Organizations (MDOs) are charged with knowing consumers and retailers in each market where PG competes and integrating the innovations flowing from the GBUs into business plans that work in each country. Global Business Services (GBS) utilizes PG talent and expert partners to provide best-in-class business support services at the lowest possible costs to leverage PGs scale for a winning advantage. Corporate Functions ensure ongoing functional innovation and capability improvement. Procter and Gamble has adopted an organizational structure of innovation that allows them to launch innovation faster. The company has taken seven key steps in order to structure their innovation management and organization for faster innovation. Delegating decisions to innovative teams: Decisions are delegated to the innovative teams in order to avoid delays and enable fast innovation independent of top managements. Integrating the Research and Development Department into the Business Unit: Integrating majority of the RD into the business unit makes innovation management more effective and fosters the collaboration with the other departments of the business units and the orientation towards the customers in lieu of an exclusive focus on the technology. Co-Location of Teams Department: By locating all innovative team members and relevant departments of a division in the same place, the company can make sure that information flows without distortion. Central Innovation Team: Procter and Gamble has an organization of central innovation team at the corporate level which goes by the name Future Works. At the business unit level its central innovation teams belong to the New Business Development Organization. Central Innovation Fund: PG has established the PG Corporate Innovation Fund (CIF) for the purpose of financing the development of disruptive innovation and of new business. Crest Whitestrips were, for instance, funded by the CIF. External Interface for Open Innovation: In order to execute Open Innovation and to channel external solutions and ideas into the company, PG innovation management needs an effective external interface. The company has established its External Business Development Organization and its Connect Develop Organization. The mission of these departments is to realize the innovation potential, which slumbers in the outside world, via the development of external networks. Merger Acquisition Department: The mission of this department is to acquire innovative companies with a view of strengthening it innovation management and be in the market-place with innovations much faster. 1.1 Corporate Culture Procter and Gamble organizational culture is based on the guiding foundation of Purpose, Values and Principles (PVP) Purpose To provide branded products and services of superior quality and value that would touch and improve the lives of their consumers and in return, the consumers would reward PG with leadership sales, profit and value creation, and allowing their people, shareholder and the communities in which they live and work to prosper. Values Integrity Leadership Ownership Passion for winning Trust Principles Show respect for all individual The interest of the company and the individual are inseparable Strategically focused in their work Innovation being the cornerstone of their success Value Personal Mastery Seek to be the best Externally focused Mutual interdependency is a way of life. Organizational Change of Procter and Gamble A common aspect of any company whether small, medium or large scale is the structural and organizational changes. An organization undergoes change in order to ensure the products and services that would be given to customers are excellent, as well as, the performance of the employee within the company. Procter and Gamble is one the company that utilises change in organization in order to become one of the most well-known product producers in the whole world. Organization 2005 is aimed at changing PGs culture from a conservative, slow-moving, bureaucratic behemoth to that of a modern, fast-moving Internet-savvy organization. PG wants to make faster and better decisions, cut red tape, save cost out of systems and procedures, fuel innovation, set more aggressive sales goals and nearly double its revenue. The catalyst for all this change is Information Technology. Finally, PG wants to abandon its legacy of secrecy. Its new spirit of openness is most evident on the Internet. SWOT Analysis One strategic management tool that PG uses to stay ahead of its competition is the effective and efficient utilization of SWOT analysis. This involves specifying the goals and objectives of the business as well as identifying the internal and external factors that are favorable and unfavorable in achieving the goals and objectives Strengths Weaknesses * Strong focus on Research and Development. * Leading market position * Diversified product portfolio * Strong brand portfolio. * Increasing instances of product recalls * Dependent on Wal-Mart Stores for majority of its revenue Opportunities Threats

The Writings of John Donne Essays -- Biography Biographies Essays

The 17th century opened with a generation of great social change which culminated in the eventual execution of King Charles I in 1649. This created an atmosphere of conflict that permeates much of the literature of the period. The writings of John Donne are rife with this conflict, reflecting in their content a view of love and women radically and cynically altered from that which preceding generations of poets had handed down. John Donne's view of love deviated greatly from the Medieval philosophy of courtly love, which had been expressed in poetry handed down from the sonnets of such poetic giants as Sidney and Petrarch. The general verse until then had focused greatly on the unrivalled importance of love in the context of the life of the poet (or his creation's voice). Until then, "love" had consisted mostly of an obsession with one woman, and an exploration of the feelings and situations that this caused in the narrator. Donne's reversal of that introversion came in the form of an intellectual exploration of the nature of his relationships themselves. His verses often point out the selfishness inherent to new love, as in "The Good-Morrow." In this poem, Donne's focus is on the exploration of the new world, which he then twists around to imply that his entire world is formed between his mistress and himself. "[Love] makes one room an everywhere." (l. 10) His poetic conceit (conception) is an explication of the emotional conceit (vanity) underlying love. A clearer example of the universalization of love is seen in "The Sun Rising" with the lines "She is all states, and all princes I,/Nothing else is." (ll. 21-22) With the equal weight of both his mistress and Donne's part, we see a much more balan... ...iewed as equals without the risk of disrupting social norms. Yet he still attempts to work against the grain of this doctrine. These social norms had been established in poetry for several hundreds of years when Donne began his work breaking them down. Working against such conventions in the perception of love and women, Donne radically altered his poetry to accommodate both a more human and more equal view of both. In the end, the effect of these changes may have been lost for a few centuries, as his poetry was swept aside and not embraced until the onset of Modernism, but perhaps, given the underlying misogyny of his poetry, this was for the best. Going from the diminutive extreme to the entirely distrusted extreme may have been a more frightening alternative for women's history than the more gradual climb from silence we now conceive of.

Marketing of Lucky Charms

General Mills Goes Ceriously Retro Target is running a 1-month exclusive with General Mills showcasing retro packaging around Cocoa Puffs, Cheerios, Lucky Charms, Trix, Kix and other brands within their cereal portfolio. A collectable t-shirt is promoted on the new retro-themed packaging, offering consumers the chance to get a vintage-styled tee of their favorite morning munch. Overall, its a smart play. Target gains exclusivity, consumers feel rewarded with a limited piece of throwback merch, and wearing the fashion creates conversations around the cereal brands and must-have appeal for young-ins. A website has been built to offer up a chance to win the tees. This isn’t the first time General Mills or others have tapped the retro look. Junk Food was wildly popular with teens a few years back via licensed t-shirts using iconic General Mills logos and characters such as Lucky Charms, Trix and others 70’s and 80’s characters. Mountain Dew and Pepsi recently announched retro packaging and product formulated with real sugar in their Throwback LTO. Dew has also used their past icons successful in recent campaigns such as Green Label Art showcasing their legenday Hillbilly character. General Mills is likely reaching a younger consumer, a savvy trend follower that will still rock the retro tee, which will likely fare well when it’s time for parents to write their grocery lists. This type of straightforward offer often favors well in a value-focused economic environment where there is a lot of pressure on established name brands to keep generic from brands taking market share. Hell, even I’d consider rocking a Boo Berry t-shirt to the gym for anyone looking to pick me up a gift on my b-day (which is a only a month away)! General Mills to make all its cereals from healthier ingredients By Bob Faw NBC News updated 12:37 p. m. ET, Thurs. , Sept. 30, 2004 Each year the average American downs 160 bowls of cereal. Thursday will see a tremor in this $9-billion-a-year industry as General Mills announces that all of its cereals — not just Wheaties and Cheerios, but Cocoa Puffs and Lucky Charms — will be made with whole grains. â€Å"Emerging science continues to support the benefits of whole grains in people's diets whether t be heart health or maintaining a healthy body weight, and we are trying to make it easy,† says John Haugen, vice president of marketing at General Mills. â€Å"When the †¦ consumer trend of being more health conscious came out, we lost sales to competitors who were already in that space,† says Tony Alvaraez, CEO of Interstate Brands. While General Mills says it's spending millions on the switch to whole grains, the amount of sugar in its cereals — 13 grams, for example, in just one cup of Trix — won't change. So some industry observers are accusing General Mills of gimmickry. â€Å"Certainly it's a marketing ploy. This is about marketing. It's not really about nutrition,† says Marion Nestle, a nutritionist at New York University. Still, many mothers are applauding General Mills. â€Å"If it's to better the health of kids and whoever eats it, it's about time they started getting it done,† says Kris Simonson. Die-hard consumers like her daughter Kali Simonson could care less. As long as the cereal tastes good, she doesn’t care what's in it.  © 2008 msnbc. com_ Reprints_ *General Mills Thrives on Increased Marketing Spending: *Boosting TV Ads Hiked Cereal Sales, But Digital ROI Even Higher BOCA RATON, Fla. AdAge. com) — General Mills, one of the package-food industry's top performers, laid out a number of recent marketing successes at the Consumer Analysts Group of New York conference this morning, and offered a preview of the rest of its fiscal year. The company has staunchly supported consumer-marketing spending increases — 19% in the first half of fiscal 200 9, which began in June — while competitors, including Kellogg and Kraft, have begun to scale back on the heady marketing outlays of 2008, instead preaching bundling and greater return on investment. General Mills estimates that its consumer-marketing spending will be up by â€Å"double digits† for the full fiscal year. CEO Ken Powell has repeatedly said that it's particularly important to support well-known brands during the current economy. â€Å"We're meeting here in Florida at a time of great economic uncertainty around the world,† Mr. Powell said. â€Å"General Mills has weathered the storm due in large part to the strength of our product categories and the strength of our brands. † He underscored that the company has a number of well-known 50-year-old brands, such as Cheerios and Pillsbury, as well as 30-year-old brands such as Yoplait and Nature Valley, that consumers trust. Positive response General Mills' sales have responded well to increased marketing support as consumers are eating more at home. Sales grew 11% in the first half of fiscal 2009, to $7. 5 billion. The company has raised guidance with each of the first two quarters. General Mills is doing so well that analysts had been expecting the company to raise its earnings guidance again this morning. For the balance of 2009, the company said it is planning a broadcast blitz for its cereal brands. Ian Friendly, chief operating officer of U. S. retail operations, said he expects the ad program to generate the biggest bump in sales. The company's Cheerios, Honey Nut Cheerios, Multigrain Cheerios and Lucky Charms have been faring particularly well. General Mills is launching Banana Nut Cheerios, Cinnamon Chex, and Fiber One Frosted Shredded Wheat cereals in the coming months. Some of these products are likely to be advertised to baby boomers, who Mr. Friendly noted will make up about half of the U. S. population by 2010. When I started here in 1983, we didn't do much advertising to baby boomers,† he said, adding that boomers are eating more cereal as they age. â€Å"We're targeting them directly now. † The company is also working harder to target Hispanics, with Progresso products such as Menudo being tested in Texas. Mr. Friendly said the company credits Hispanic-targeted advertising for Honey Nut Cheerios with a 35% increase in year-to-date sales with those consume rs. Bromley Communications is General Mills' Hispanic agency. Online growth But while the bulk of the company's spend remains on TV, Mr. Friendly said in a conference with reporters that it has begun to see significantly higher return on digital investment. General Mills has been diverting funds online, driving traffic to recipe sites such as BettyCrocker. com. The company's cooking sites had about 8 million visitors last month. General Mills also recently launched a free Betty Crocker iPhone application, which offers meal suggestions based on what's in a consumer's pantry. â€Å"We are seeing very high returns from digital than broadcast,† Mr. Friendly said, declining to give the percentage of spending that's moved online. â€Å"It's ot that our TV ads don't work, but when you're watching TV you're doing it for a different reason. When you go to a website you have a very specific purpose. † General Mills Thanks Its Lucky Charms, Melinda Peer, 06. 18. 08, 5:45 PM ET http://www. forbes. com/2008/06/18/general-mills-guidance-markets-equity-cx_mp_markets38_print. html With higher ingredient costs eating int o food companies' profits, General Mills surprised investors with news that full-year results would be better than expected. That's because they've been serving up extra costs to consumers. Shares of General Mills, Inc. gained $1. 1, or 3. 2%, to close at $62. 64 on Wednesday after the company said year-end results would top guidance thanks to a 13. 0% sales increase in the fourth-quarter. The food company, which boasts popular brands like Cheerios, Yoplait, Green Giant and Haagen-Daz, now expects 2008 earnings of $3. 71 a share and sales of $13. 7 billion. Earnings, adjusted to exclude a favorable tax ruling and gains from valuations of commodity holdings, are expected to be $3. 52 a share–an 11. 0% increase from last year's earnings of $3. 18 a share. Analysts had been expecting earnings of $3. 48 and sales of $13. 4 billion. The company's previous guidance had been for adjusted earnings between $3. 45 and $3. 47 a share. But with commodity prices showing no signs of falling, it's unclear how long the General Mills can expect consumers to foot the bill. Cocoa U. S. futures soared to a 28-year high at $3,122 a tonne as investors responded to reports of pressured supply in the Ivory Coast, the world's top cocoa grower. Corn for delivery in July 2009 matched Monday's high of $8. 07 a bushel before settling ahead by 6 cents at about $8. 01 a bushel. General Mills, however, expects growth to meet or exceed expectations through 2009. It guided for adjusted earnings in the range of $3. 78 to $3. 83 a share. Analysts have been expecting earnings of $3. 81 a share in 2009. Rival company Kellogg's, raised prices in January to offset expensive raw material costs. Rather than hiking prices again, the company said it would shrink the size of cereal boxes instead and sell them for the same price (See: Kellogg's Crumbling Profits). Kellogg's skimmed an average of 2. 4 ounces from boxes that will be used for 14 products under brands like Apple Jacks, Cocoa Krispies, Corn Pops, Froot Loops and Honey Smacks. The boxes shipped to U. S. stores earlier this month.