netrashetty
Netra Shetty
Bed Bath & Beyond Inc. (NASDAQ: BBBY) was formed in 1971 and today operates a chain of domestic merchandise retail stores across United States and Canada [1]. They feature mostly medium-ranged, but also a limited selection of high quality, domestic merchandise: items for the bedroom, bathroom, kitchen, and dining room. The company is included in the S&P 500 and Global 1200 Indices and the NASDAQ-100 Index. It is also counted among the Fortune 500 and the Forbes 2000.
The company's corporate headquarters are located at 650 Liberty Avenue, Union, New Jersey 07083
Target Market
The main target market for the firm is tourists who go to Hong Kong to experience food and beverages in its finest in the region. The secondary target market will be the locals and business stakeholders, who have sustained the growth of the restaurant industry through their continued patronage of restaurant in Hong Kong. Specifically, the demographic profile of the market to Grace’s Cuisine will be the all-aged generation of customers, from the 1 to any age bracket. The food and beverage has been served in various ways thus making the market rather varied as well. It is also proposed that the target market on this context would also include the younger generations. A need to cater to a specific demographic has spawned the need to acquire a competitive advantage with the rest of the players in the market.
Product Feasibility and Strategy
The product that Grace’s Cuisine will offer is excellent food and beverages items and will increase in number as time passes. The names of the food and beverages are unique, so that customers may know that the products are uniquely Grace’s Cuisine’. Before the food and beverages were formally included in the official list of the business’ offerings, there were taste tests conducted in local supermarkets, and those that passed initial testing were given official names to establish identification. The cups were likewise pre-tested for their functionality and durability to withstand water heat (in case the beverage belongs to the hot variation. The tissues and utensil which would be used are manufacturer-guaranteed to be environment-friendly and safe for human use. The machines and equipment to be used are likewise tested in order to bring only the best-tasting food and beverages that is worth every dollar.
Pricing Strategy
The price will depend on the type of food and beverages. The prices would be in par with those existing restaurants in Hong Kong, with the business relying on the shop ambience, quality of dining service, and free live band performance to gain competitive advantage from rivals in the area. Using all the available information in this business plan, the pricing objective of Grace’s Cuisine would be to offer the best-tasting food and beverages in Hong Kong at relatively affordable price ranges. With that in mind, the pricing strategy included the cost of providing food and beverages to the customer (electricity costs, labour costs, raw materials cost, etc.)
As account manager and GM, I do believe that Grace’s Cuisine products will have unique and defensible attributes which could support a high price. However, since a sector of the target market involves young people, who commonly do not have a source of income of their own, Grace’s Cuisine will strive to keep costs at the lowest level in order to maintain a cheap price offering for all their food and beverages products. Also, since the Grace’s Cuisine aims to promote an image of affordability and quality all rolled into one, this pricing strategy would definitely help build and sustain that target image.
Channels of Distribution and Promotion and Advertising
On start-up, there will only be one restaurant located in Central, Hong Kong where clients could go to have their satisfying food and beverages. This is the main and only channel of distribution for the initial months of the business. However, if financial statements forecasts prove true, customers will soon see a number of Grace’s Cuisine bistros lined up in the thoroughfares of Hong Kong.
Almost 5 percent of paid search spending in the US is now in mobile, according to a report released last week from banking and investment firm Macquarie Group, using Efficient Frontier data.
That mobile search spend could double to almost 10 percent by the end of this year if growth continues at an aggressive pace.
Using some very rough math that would mean US mobile paid search could be worth approximately $1.1 billion (at least) by the end of 2011. And almost all that money would be Google’s.
Just as Google dominates mobile search share in the US (with roughly 98 percent), the report said that 97 percent of mobile search spend (for Efficient Frontier clients) now goes to Google, while 3.2 percent spend goes to Bing/Yahoo.
At the recent IAB event in Florida Google CEO Eric Schmidt said that mobile is growing “faster than expected” and surpassing all the company’s internal projections. On average mobile search queries represent roughly 15 percent of all search volume across categories, according to Google.
But there’s a catch. Efficient Frontier data show higher CPCs and lower CTRs for mobile search campaigns. This pattern is confirmed by iCrossing data as well.
The report states that mobile searches have a CTR that is “30 percent lower than desktop” CTR. By the same token mobile search CPC is 13 percent higher than on the PC, according to Efficient Frontier’s data. The report doesn’t mention click to call or its impact on CPC prices.
What these data argue is the need for different ROI metrics for mobile search campaigns. Marketers need to “open the aperture” and take a greater range of actions and activity into account:
Currently, ROI measurement for mobile search advertising is largely based on the same revenue-based ROI criteria used to evaluate desktop search campaigns.
As a result, the ROI statistics for mobile campaigns are often significantly lower than for desktop search campaigns (as evidenced in Efficient Frontier’s data).
Until advertisers can more accurately attribute a wider range of “success” events such as offline store visits, offline and (delayed) online sales, and phone calls to a mobile ad campaign, marketers using a traditional ROI-based approach to make campaign budget decisions will be less willing to increase mobile ad budgets.
Clicks and CTR are bad metrics for mobile. For example, InsightExpress and Dynamic Logic data show mobile display ads consistently outperforming PC display across a range of non-CTR brand metrics (e.g., recall, favorability).
Many mobile users are inclined to take immediate, “real-world” action and are more likely to do so than their PC counterparts. According to Google’s Surojit Chatterjee, “Mobile users are more prone to take immediate action. People searching on mobile have a higher intent. The time between intent and action has been narrowed.”
The report also has this interesting analysis about the impact of the iPhone on Google’s fortunes in mobile — 50 percent of iPhone Google searches come from the toolbar:
We’ve seen data that shows that while Google absolutely dominates searches emanating from the iPhone (95%+), ~50% of iPhone Google searches come from the toolbar, 42% from Google’s homepage and less than 10% from Google’s app.
This is an absolutely critical point, as it indicates that Apple has significant influence over GOOG’s mobile search share. If Apple were to make Bing the default search provider through its toolbar, Google’s share could be significantly impacted.
In other words, if Bing were to capture the default toolbar position on the iPhone it would potentially mean 50 percent of search queries would be diverted away from Google.
The company's corporate headquarters are located at 650 Liberty Avenue, Union, New Jersey 07083
Target Market
The main target market for the firm is tourists who go to Hong Kong to experience food and beverages in its finest in the region. The secondary target market will be the locals and business stakeholders, who have sustained the growth of the restaurant industry through their continued patronage of restaurant in Hong Kong. Specifically, the demographic profile of the market to Grace’s Cuisine will be the all-aged generation of customers, from the 1 to any age bracket. The food and beverage has been served in various ways thus making the market rather varied as well. It is also proposed that the target market on this context would also include the younger generations. A need to cater to a specific demographic has spawned the need to acquire a competitive advantage with the rest of the players in the market.
Product Feasibility and Strategy
The product that Grace’s Cuisine will offer is excellent food and beverages items and will increase in number as time passes. The names of the food and beverages are unique, so that customers may know that the products are uniquely Grace’s Cuisine’. Before the food and beverages were formally included in the official list of the business’ offerings, there were taste tests conducted in local supermarkets, and those that passed initial testing were given official names to establish identification. The cups were likewise pre-tested for their functionality and durability to withstand water heat (in case the beverage belongs to the hot variation. The tissues and utensil which would be used are manufacturer-guaranteed to be environment-friendly and safe for human use. The machines and equipment to be used are likewise tested in order to bring only the best-tasting food and beverages that is worth every dollar.
Pricing Strategy
The price will depend on the type of food and beverages. The prices would be in par with those existing restaurants in Hong Kong, with the business relying on the shop ambience, quality of dining service, and free live band performance to gain competitive advantage from rivals in the area. Using all the available information in this business plan, the pricing objective of Grace’s Cuisine would be to offer the best-tasting food and beverages in Hong Kong at relatively affordable price ranges. With that in mind, the pricing strategy included the cost of providing food and beverages to the customer (electricity costs, labour costs, raw materials cost, etc.)
As account manager and GM, I do believe that Grace’s Cuisine products will have unique and defensible attributes which could support a high price. However, since a sector of the target market involves young people, who commonly do not have a source of income of their own, Grace’s Cuisine will strive to keep costs at the lowest level in order to maintain a cheap price offering for all their food and beverages products. Also, since the Grace’s Cuisine aims to promote an image of affordability and quality all rolled into one, this pricing strategy would definitely help build and sustain that target image.
Channels of Distribution and Promotion and Advertising
On start-up, there will only be one restaurant located in Central, Hong Kong where clients could go to have their satisfying food and beverages. This is the main and only channel of distribution for the initial months of the business. However, if financial statements forecasts prove true, customers will soon see a number of Grace’s Cuisine bistros lined up in the thoroughfares of Hong Kong.
Almost 5 percent of paid search spending in the US is now in mobile, according to a report released last week from banking and investment firm Macquarie Group, using Efficient Frontier data.
That mobile search spend could double to almost 10 percent by the end of this year if growth continues at an aggressive pace.
Using some very rough math that would mean US mobile paid search could be worth approximately $1.1 billion (at least) by the end of 2011. And almost all that money would be Google’s.
Just as Google dominates mobile search share in the US (with roughly 98 percent), the report said that 97 percent of mobile search spend (for Efficient Frontier clients) now goes to Google, while 3.2 percent spend goes to Bing/Yahoo.
At the recent IAB event in Florida Google CEO Eric Schmidt said that mobile is growing “faster than expected” and surpassing all the company’s internal projections. On average mobile search queries represent roughly 15 percent of all search volume across categories, according to Google.
But there’s a catch. Efficient Frontier data show higher CPCs and lower CTRs for mobile search campaigns. This pattern is confirmed by iCrossing data as well.
The report states that mobile searches have a CTR that is “30 percent lower than desktop” CTR. By the same token mobile search CPC is 13 percent higher than on the PC, according to Efficient Frontier’s data. The report doesn’t mention click to call or its impact on CPC prices.
What these data argue is the need for different ROI metrics for mobile search campaigns. Marketers need to “open the aperture” and take a greater range of actions and activity into account:
Currently, ROI measurement for mobile search advertising is largely based on the same revenue-based ROI criteria used to evaluate desktop search campaigns.
As a result, the ROI statistics for mobile campaigns are often significantly lower than for desktop search campaigns (as evidenced in Efficient Frontier’s data).
Until advertisers can more accurately attribute a wider range of “success” events such as offline store visits, offline and (delayed) online sales, and phone calls to a mobile ad campaign, marketers using a traditional ROI-based approach to make campaign budget decisions will be less willing to increase mobile ad budgets.
Clicks and CTR are bad metrics for mobile. For example, InsightExpress and Dynamic Logic data show mobile display ads consistently outperforming PC display across a range of non-CTR brand metrics (e.g., recall, favorability).
Many mobile users are inclined to take immediate, “real-world” action and are more likely to do so than their PC counterparts. According to Google’s Surojit Chatterjee, “Mobile users are more prone to take immediate action. People searching on mobile have a higher intent. The time between intent and action has been narrowed.”
The report also has this interesting analysis about the impact of the iPhone on Google’s fortunes in mobile — 50 percent of iPhone Google searches come from the toolbar:
We’ve seen data that shows that while Google absolutely dominates searches emanating from the iPhone (95%+), ~50% of iPhone Google searches come from the toolbar, 42% from Google’s homepage and less than 10% from Google’s app.
This is an absolutely critical point, as it indicates that Apple has significant influence over GOOG’s mobile search share. If Apple were to make Bing the default search provider through its toolbar, Google’s share could be significantly impacted.
In other words, if Bing were to capture the default toolbar position on the iPhone it would potentially mean 50 percent of search queries would be diverted away from Google.