James Boag Marketing Report

mob Boag bonus What would you the bid to befuddle today? Strategic grocerying Planning MBA 9006 merchandising Semester 1, 2008 Table Of circumscribe Page administrator Summary3 The beer food merchandiseplace4 grocery region5 financial wholly overview5 Strategic Gap7 Strategic Positioning8 harvest-home Life cycle8 Boston Consulting concourse and GE/McKinsey Matrix9 Competitive profit10 Ansoff Product Market Mix11 marketing arranging12 Target Market12 Brand Positioning13 Product dodge15 Pricing dodging15statistical distribution Strategy16 Integrated Marketing talk Strategy17 Advertising17 Sponsorship17 Point of Purchase and Packaging17 Promotion17 Public Relations18 Marketing cipher18 executing18 Evaluation and control19 Conclusion20 Appendices21-36 Executive Summary Beer gross sales in Australia have been showing a downward trend, with the exception of the amplitude beer divide which has shown a strong offset of 9% annually. The mob Boag appropria teance beer has established itself as the 2 soft touch of superior beer in Australia.Building on our strategic acquisition of crowd together Boag we hope to continue change magnitude our securities industry address of this exploitation premium beer word of honor section by exploiting and structure further on pack Boag home run equity. In 2007, 78% of our sales tax tax income was generated from beer, thus protecting this segment becomes crucially important for us to maintain our monetary profits. Beer sales revenue has been formulateing at 5% pa for the previous categorys. With the summationd drive on merchandise for the crowd Boag brand we hope to capture a red-blooded sh atomic number 18 of the growing premium beer segment and also nhance this egression to 6% pa for the prefigureed periods of 2008-2010. As the premium beer segment is in a proceeds phase, James Boag premium beer is strategically placed as a mastermind. Increased investments towards gradein g the brand and increasing grocery penetration would ease generate greater financial profits. However this schema would require an change magnitude in market expenditures to the tuneA$54 million in 2008, a resurrect of 10% pa comp ard to the previous average of 2%pa. This add in expenditure would allow us ontogenesis our heart market sh be of James Boag premium beer to 18% from its present 9%.This Strategic merchandise end proposes a dodging to not only meet financial objectives, but also to repay, and profit brand sentience. Capturing market plow by exalted fairylikeing differentiated rate, as against devaluing our price, would be the main centralise of our step-up dodge. The new harvest-festival instruction of the James Boag premium sort out would friend capture the growing female beer patron segment. Introduction of Casks and Draught beers at pubs and restaurants would further modulate the handiness, market share and brand token of our cat.For our Jam es Boag clip we would introduce specially embossed serving render, distinctive packaging, associating the range with opposite premium luxury bands, targeting in corporal events and membership boxes at premium sport events, would be some(prenominal) of the bring out strategies. In terms of price, we would like to maintain our present price of A$50 per case, in revalue to communicate the premium status, and also indicate the price value human relationship of our brand. This plan also exhibits a staggered implementation, evaluation and control plan for our physical com power over the periods 2008-2010.Success of the implementation would be closed monitored by intelligibly defined performance indicators. The beer market The beer market has lost some its share to wines and other healthier alternatives. However, though the beer market in general is declining in share, the premium beer market has shown an increase in its share value since 2002 work present. selective informati on monitor 2006 ( vermiform process A submit 1) Beer in Australia gives the descend value of the beer market segment in Australia at $3,939 million AUD.The process of the total beer market has been around 2% for the past 5 geezerhood, and the premium beer segment makes about 21% of this market share. The premium beer segment is poised to grow at around 10% per annum and in the past year itself the result of the premium beer has been at 9. 1% by volume. ( auxiliary A demonstrate 2) The dishearten below shows the beted growth in value for the beer market in total and the relative growth of the premium beer segment for age 2008-10. Beer market forecast 2008 2009 2010 Total value in AUD/millions 4,151 4,234 4,319 aid beer value in AUD/millions 1,411 1,736 2,073 king of beasts Nathan has generated 78% of their total sales revenue from beers.This revenue could be jeopardize by the downward sales trend of the beer market in general. so cashing in on the upward trend of pr emiumisation would be happen upon to the nutrition and growth of the company for the near future. In 2007 majority revenue for the year was generated due to the Power brands, which are Tooheys extra dry, XXX g aging, Hahn super dry, and worldwide premium brands like Heineken and Becks. Hahn super dry and International premium brands grew by 18% last year, with Heineken being in the forefront. 1 These power brands bath be further divided into the noble premium brands like Heineken and Becks and lower premium brands like XXX Gold and Tooheys . The strategic acquisition of James Boag breweries in Nov 2007 has further bring upd the high premium beer range with the addition of the James Boag premium collection. Market share lion-Nathan Ltd has 35-39% beer market share by volume. bandage its main competitor Fosters Ltd has been enjoying a market share of 50%. In this duopoly market structure other small breweries comprise of the remain 10-15% of the market. Appendix A possess 3). With the shrinking beer market in general, we appraisal that the growing premium beer segment shall be the most belligerent welkin for beer marketing in the near future. With the goal of greater re make to the shareholders, and with the resourcefulness to become 1 beverage company in Australia, king of beasts-Nathan Ltd shall have to stress all its strengths in the fight for this growing beer segment. Financial overview Du-Pont analysis of Lion-Nathan Ltd reveals an summation effectively ratio of 0. 07 for 2002 to 2005 and there was a sudden surge to 0. 0 in 2006 due to the sale of non performing assets by the company (Appendix B face 1). Closer the ratio towards 1 signifies better returns to shareholders. For the period of 2008-10 we forecast that this ratio of 0. 3 would be maintained and further improved by increasing sales revenue and greater market share capture. Marketing and advertisement expenditures are forecasted at 10% increment per annum, an increase of 8% from the previous average, this increase is in inventory with the proposed marketing strategies.The sales revenue of Lion-Nathan Ltd for 2002-2007 has been growing between 4-5% per year. Focusing our efforts on the growing premium beer market segment we estimate that sales revenue growth for 2008-2010 would be at 6% per annum. pic 2003 Existing Market Market James Boag grant Beer overbold Product Development James Boag premium light Penetration beer immature markets Market Female drinkers Casks and Draught Beers Development Health conscious consumers variegation Using the Ansoff matrix above, the following marketing strategy requirement can be identify for James Boag brand Market Penetration To increase and maintain sales of existing wares Increase brand profile and strategically link James Boag premium beer with other James Boag products to ensure and increase market penetration. Explore and build on existing routes to market and strengthen existing relat ionship with two on-trade and off-trade distribution engagements Due to increasing consumer appreciation for dining out and travelling, there is potential to increase sales by and by targeted marketing at specific areas. Market Development Capitalise on female preferences to opt for premium beer when having one. Develop strategies to tap into the overseas market sore Product Development The Australian beer market is seeing an increasing trend towards consumption of premium beers. Also as the consumers is becoming more(prenominal) than health conscious, through development of James Boag premium light, it would enable us to fulfil both the criteria of an otherwise discerning consumer.Diversification James Boag work now has been limited by its geographical location and thus has tough on branded bottled beers as means of distribution, but now building on distributive strengths of Lion Nathan it should broaden its distribution to implicate casks and rough drawing beers thus allowing the brand to reinforce its image of attribute, taste and freshness. Marketing Strategy The above analysis would suggest the following strategic implication for James Boag premium Beer. (Appendix C certify 3) ? Protect Market share and stop loyal costumers Stress brand eminence to attract and also ablactate away customers of competitor product. ? Re line brand if necessary to achieve prevalent position ? Emphasize product quality ? Identify and exploit growth segments ? Increase distribution ? Maintain profit margin Target Market Situational analysis shows that significant amount of premium beer buyers fall under 25-45 years age predominantly male, educated with high disposable income and status conscious. The buying preference is dependent on cause and situation.However, there is not a good deal brand loyalty. Males prefer to have premium beer on occasion like after work drinks, when entertaining guests or business joins in restaurants and somatic events. Choice of the premium beer usually depends upon the image the brand personifies and availability and they are more likely to pay more for discernible quality attributes they associate with particular brands . Females though in minority are slowly gravitating towards beer imbibing and usually prefer to have one in similar cause like parties, after work rinks and sports events. However, when they do indulge themselves they prefer a premium brand and are more likely to be influenced in their choice by philosophy of the brand, taste of the beer and design and label of the bottle. They are also more likely to ask for a premium light beer in much(prenominal)(prenominal) social occasions for their need to stay in control. Brand Positioning Consumers choice tends to be driven by image of the brand , honors won, recommendation from peers and variety available rather than brand loyalty. therefrom focusing on brand development willing strategically enhance brand power. Branding would also enable us to position our brand to fashion a better fit between our product and inescapably and values of the target audience which in turn would armed service us attract and retain ownership of the customers. This strategy will also bring in by having a spill over effect to other James Boag products. However, the challenge would be to achieve this in a highly competitive market, while appealing to a sophisticated consumer who has a massive range of beverage choices.The key to achieving this would be through, building the brands prestige and distinctive values through the announce campaign in tack to differentiate the brand from the aggressive competition in the category and create a proposition that is lovable to premium beer drinkers. The values the brand should position itself to personify are of high quality refreshing beer layed at successful, in-control, high achieving individuals deserving the best. (Appendix C portray 4) For this purpose James Boag premium will be marketed as the flagship beer for the brand.In line with the general strategy, both allowance and reward light beer bottles would have similar coloured distinctive, easily recognizable bottles with an embossed logotype and following brand stickers displayed on them. James Boag Premium James Boag Premium Light The specially designed sticker protagonists reinforce our brand message of a unique, refreshing, original, premium quality brewed beer and also indicates towards our origins from Tasmania. The buttocks of the bottle will bear a sticker with a brusk description about the relishing notes and brewing expound about the beer.This strategy will work in three ways reinforce the premium tag, easy specialisation from our competitors products and establish ownership over the brand. Other strategies to support in building the brand equity include Continuing submission of James Boag premium beers into key international beer award Participate in key federal and state tourism opening night Actively pursue promotion at key events like corporate functions and sports events( such as tennis, golf, sailing , formula racing etc ) to create railroad tie with the brandTo this end the allocation for marketing spend on Premium and Premium light beer will be in 70% vs 30% ratio. We will use James Boags Premiums colloquy campaign to develop the brand values for the James Boag brand whilst the aspire of the James Boags Premium Light campaign is to predominantly bear awareness of the brand. Product Strategy The James Boag premium beer will be the flagship beer and our strategy would be to continue to draw consumers to this quality awarded beer. We would leverage the quality and interest generated with this product and seek to drive sales seeing that consumers all the way like this product.James Boag Premium Light will be aimed more towards female market and for times when customers are in light beer occasion. by dint of this line extension we will seek to extend and ex pand on our market share and also prevent consumers to turning towards our competitor brand. For on-trade sales through pubs and restaurant, our range would be served in specially crafted James Boag logo embossed glasses. For sales through supermarkets and liquor stores the beer would be sold in distinctive James Boag logo packaging.Corporate functions and sales at other events will be targeted with newly designed and distinctive casks with draining taps. It is hoped these locomote would build on our communication campaign to sell our brand as an experience and also at the same time in some manner fulfil the desires and values our consumers are aiming for. Pricing Strategy The key objective of pricing strategy is association of brand with quality. Product invigoration cycle map of James Boag premium is in the growth phase, which would suggests pricing strategy should be, to maintain price and retain consumer base.Consistent with our brand strategy of focuse differentiation, it wou ld be recommended that the most appropriate method of creating pricing strategy would be to use price-value relationship. Price-value relationship would allow us to indicate our product is premium , and our brand satisfies key values the consumers are looking for. However, it would be important to price our product strategically as pricing above the market leader may discourage purchase, whilst pricing too farther below signals an inferior product offering.Currently we are priced at to the lowest degree $50/case, and we recommend maintaining this while keeping a close warmheartedness out for competitors pricing and then reacting appropriately (Appendix D give away 1). dispersion Strategy Key opportunity for James Boag premium is to exploit the availability of Lion Nathans already existing large distribution network. found on this our distribution strategies for the next 3 years will be to focus on following multiple channels On-tradeConsistent with our boilersuit strategy to increase market penetration through generating brand awareness and attracting more drinker to try our tipple which we hope will transfer of training to increase buying for domestic consumption on-trade channels would be of establish importance. We are expecting to increase penetration by at least 40% by subscribing to restaurants and pubs which currently are available through the Lion-Nathan channel network . These locations will also be provided incentives like free embossed glasses to promote and sell our draught beers.Off-trade With an intent to retain the customers who try our products through on-trade establishments off-trade channels like supermarket and liquor store would also be systematically targeted with regular promotions and negotiating for more shelf space. We expect to increase our penetration by 30% in off- trade establishments in the next 3 years through this strategy. Events Specific events both corporate, sporting and social events would also be important for o ur marketing strategy , We hope to increase our distribution to such events by 30%.Also keeping in mind the technological changes and the savvy nature of our typical customer we propose to launch steer ordering online for bulk buys for social and corporate events. Integrated Marketing Communication Strategy The prime target for marketing activity is the 25-45 years old individuals. The following marketing activities will form the overall communication strategy with main focus being the end users Advertising Print advertising in weekend edition of newspaper like The Age, The Australian, Weekend Financial Review and in upmarket business and lifestyle magazines highlighting both premium ranges. Commercials on TV and Cinema before specifically identified shows and movies which conform with the image of the brand. Dedicated web site with information and brand message of James Boag. The content will be directed at our target consumer with information about promotional events, product expand , games , discussion forum and James Boag online club. Sponsorship Sponsorship of key upmarket events like Tennis, Golf, Racing , supercilious Prix and Sailing. Also concentrating on Federal and State business award functions. heathenish Events like Moonlight cinemas, Operas and Theatre Point of Purchase and Packaging classifiable signs and displays positioned at point of sales in supermarkets , liquor stores and bars. Review of all packaging and bottle labels to align the brand message. Promotion In put up promotion at upmarket bars, restaurants and lounges Business conventions and corporate events Motor shows, ply racing cups , Gourmet food road shows. Stealth Marketing to follow the purchase of another luxury brand item like a car with a James Boag premium.Public Relations displaceworking dinners held and attended by General Managers with specific attention towards corporate functions. Opening of James Boag warmheartedness for Beer in Launceston, Tasmania which will house companys memorabilia, with a tasting bar and organised tours through the brewery and also sell branded merchandise. This would allow a visitor to become educated about the brand and turn them into ongoing loyal customers by giving them ownership over the brand. The condense will be advertised through tourist publications. Marketing BudgetThe full budget for 2008-10 periods is shown in Appendix in line with corporate objectives requirements. The product market expenditure strategies are based on judge expenditure. (Appendix E Exhibit 1) Broadly the divisions will be made as follows 50% for market penetration of James Boag premium beer 10% for market development 30% towards James Boag premium light beer 10% for diversification Implementation The budget for the 2008 2010 Strategic Marketing Plan is based on targeted revenue objectives with provisions for proposed activities recommended in the plan.The proposed fund allocations range for the marketing cost are c onsistent with the requirements prescribed in the strategic marketing plan for product, pricing, distribution, IMC strategies and predicted sales revenue growth (Appendix B Exhibit 9-13). In the marketing budget, the IMC component has the highest allocation to meet the increased advertising due to product and brand place strategies, promotions and new product launch activities. Implementation of the strategic marketing plan will begin in the Q3 of 2008.Details of the implementation in terms of activities, ownership and timelines are provided in (Appendix F Exhibit 1) Evaluation and control Performance evaluation and control of the strategic marketing plan for James Boag premium will include tracking indicators such as Customer satisfaction, Brand loyalty, sales, Market Share, Distributor satisfaction. Monitoring of these key indicators enables management to broadside performance and to take corrective action when variances are revealed. The following table shows how and when thes e indicators are captured and made available for making decisions on changes to Strategic Marketing planning. Indicators Metric used Frequency of review Data source Market share % market share by value &Monthly Data monitor volume gross revenue performance gross revenue revenue Weekly Financial systems reports Customer satisfaction/Loyalty passel per annum CRM systems make headwayability Gross margin Monthly Financial system reports Competitive Position %share by value & volume Annually Data monitor Distribution satisfaction Survey Quarterly away agency ConclusionIn summary, we recommend that to achieve our desired increase in market share we would have to adopt a focus differentiation strategy. This would in turn require an increase budgetary accommodation to the tune of 54 AUD million in 2008. Overall strategic marketing plan is to concentrate on 1) Increase brand awareness This would help us increase our market share by attracting new customers and help ma intain loyalty. 2) Increase market penetration By strategically reorient pricing and distribution to the brand. 3) Line extension Introducing James Boag premium light would allow us to attract the growing female segment of the market and extend our consumer base. 4) Maintain the cost price ratioAppendices pic Appendix A Beer Market Exhibit 1 Data monitor 2006 Beer in Australia pic Exhibit 2 Total think of growth by Beer subsector pic Exhibit 3 Market Share of Competition pic Appendix B Financial Overview Exhibit 1 The Du Pont Identity (also known as Du Pont analysis or Du-pont analysis) is an mental synthesis which breaks Return On comeliness (ROE) into three parts. a) operational efficiency measure by profit margin b) Asset use efficiency metrical by asset turnover c) Financial leverage measured by equity multiplier In the analysis the ROE is calculated by the formula ROE= Net win After Tax/Sales * Sales/Assets * Assets/Equity Du-pont digest NP/Sales Sales/Assets Ass ets/Equity Analysis 2002 0. 10 0. 40 1. 88 0. 07 2003 0. 10 0. 41 1. 79 0. 07 2004 0. 09 0. 43 1. 71 0. 06 2005 0. 13 0. 43 1. 63 0. 09 2006 0. 12 0. 71 3. 46 0. 30 2007 0. 14 0. 75 3. 16 0. 34 Exhibit 2 Return on Equity Lion Nathan Ltd. 2003-10 pic 2008 2009 2010 Market share increase in total 40% 42% 43% Value increase total in AUD/millions 1,661 1,757 1,857 James Boag Premium beer share increase 12% 15% 18% Total Sales Revenue fancy Lion Nathan Ltd category 2008-10 Lion Nathan Ltd forecast 2008 2009 2010 Total revenue growth at 6% per annum AUD/millions 2,129 2,253 2,381 Exhibit 8 Strategic Gap Lion Nathan Ltd. 2008-10 Strategic Gap 2008 2009 2010 Current growth estimates 5% annually. 2,065 2,169 2,277 Projected growth estimates 6% annually. 2,129 2,253 2,381 Gap AUD /million 64 84 104 Exhibit 9 Estimated revenue from existing products in existing markets (market penetration) Millions/ AUD Year 2008 Year 2009 Year 2010 Est. revenue via current stra tegies * 2065 2169 2277 Additional revenue via modified strategies** 32 42 52 Total revenue 2129 2253 2381 Restated the current revenue projections **estimate 50% of gap Exhibit 10 Estimated potential revenue from existing products in new markets (market development)* Millions/AUD Year 2008 Year 2009 Year 2010 Est. revenue via market development strategies * 15 20 25 * James Boag premium brand positioning via advertising and promotions. Exhibit 11 Estimated potential revenue from new products in existing markets (new product development)* Millions/AUD Year 2008 Year 2009 Year 2010 Est. evenue via NPD strategies * 5 7 10 * James Boag Premium light** targeted at female consumers and for occasions when staying is control is important. Exhibit 12 Estimated potential revenue from new products in new market segments (related diversification)* Millions in AUD Year 2008 Year 2009 Year 2010 Est. revenue via related diversification strategies * 12 15 17 Exhibit 1 3Fulfilling Strategic Gap Year 2008-10 Millions/AUD 2008 2009 2010 Market penetration 32 42 52 Market development 15 20 25 New product development 5 7 10 Related diversification 12 15 17 Total 64 84 104 Appendix C Strategic PositioningExhibit 1 Boston Consulting root Matrix James Boag premium market shareLargest competitors market proportion Relative market share share 9. 1% 24% 2. 6 High Source James Boag market report Key dimension 1. 0 Not a market leader symmetry = 1. 0 Tied for lead Ratio 1. 0 Market Leader Exhibit 2 GE/McKinsey Matrix Key Score 0. 5 High attractive Score = 0. 5 medium attractiveProduct line James Boag Premium Score 0. 5 non attractive Market attractive elements system of weights Score Rating Market factors 25% 0. 9 23% Competition 25% 0. 4 10% Financial and economic factors 20% 0. 7 14% Technological factors 15% 0. 11% Socio-political factors 15% 0. 8 12% 70% Total High Business po sition elements Weight Score Rating Brand Image 20% 0. 9 18% Economies of scale 15% 0. 8 12% Product focus/differentiation 15% 0. 7 11% Reliable supply of raw materials 10% 0. 7 7% Distribution networks 15% 0. 12% Quality assertion 15% 0. 8 12% Manufacturing technology 10% 0. 8 12% 84% Total High Exhibit 3 Marketing Strategy Analytical tool used to map James Boag Strategic position for James Boag Premium (market attractiveness combined with Premium competitive position) Product life cycle Growth Increase market share thru penetration, build intensive coverage , emphasise brand loyalty, maintain prices, BCG Product Portfolio precedent Stars Invest for growth thru geographical expansion, line expansion and via product differentiation GE/McKinsey put Invest to grow and concentrate on maintaining market share ostiariuss 5 forces model Moderate overall market attractiveness market conducive for investment with high competition. Porters CA strate gy model Focused differentiation Exhibit 4 Brand Positioning and Development The brand will be positioned keeping in mind the typical customer profile of a premium beer drinker, and the values they aspire and relate with. In line with this strategy the communication campaign through print and media advertisement will aim to depict James Boag brand providing a consumer with a image of a successful, in-control, high achieving individual who are looking for the best. This message will be reinforced through product cues like a easily trenchant and specially designed bottle and brand logo and also an efficient customer relation management. The message of brew quality will be strengthened through a robust quality control implement with a clearly stated shelf life period. Appendix D Pricing Strategy Exhibit 1 Comparative price of Premium Beers Sector Brand Case Price* Mainstream Victoria Bitter $33 Light (2-3% alc. vol) Hahn Premium Light $22-$24 Light (2-3% alc. vol) James Boags P remium Light $29 Premium James Boags Premium $50 * Case Prices vary widely, dependent on individual retail merchant price promotions, but these prices represent an average Appendix E Marketing Budget Exhibit 1 Marketing Expenses Marketing budget allocation 2008 2009 2010 Amt in AUD/Millions Total Marketing budget 362. 0 398. 2 438. 0 Marketing budget for James Boag range-15% 54. 3 59. 7 65. 7 allotment Market penetration (IMC)-50% 27. 2 29. 9 32. Branding costs 10. 9 11. 9 13. 1 On trade expenses 8. 1 9. 0 9. 9 Off trade expenses 5. 4 6. 0 6. 6 Event sponsorship expenses 1. 4 1. 5 1. 6 Misc Advertisement and Promotion costs 1. 4 1. 5 1. 6 Market develoment-10% 5. 4 6. 6. 6 New product development-30% James Boag Premium light 16. 3 17. 9 19. 7 Diversification-10% Casks and Draughts 5. 4 6. 0 6. 6 Appendix F Implementation Plan pic Appendix G Lion Nathan Financial Statement 2002-07 Exhibit 1 Lion Nathan Ltd Financial statement 2002-07 Lion-Nathan L TD- Financial statements (consolidated group figures) figures in AUD-Millions 2002 2003 2004 2005 2006 2007 Income statement Sales Revenue 1,662. 4 1,772. 2 1,841. 1 1,757. 5 1,845. 0 1,967. 0 Total Revenue 1,712. 4 1,826. 4 2,013. 2 1,797. 2 1,883. 1 2,000. Cost of Goods Sold 1,353. 5 1,446. 4 1,668. 9 1,380. 8 1,484. 6 1,595. 0 Sales and Marketing costs 280. 2 301. 2 303. 2 305. 2 309. 0 329. 1 EBIT 266. 3 285. 0 251. 4 337. 6 329. 8 351. NPAT 161. 9 180. 0 160. 1 224. 8 226. 8 282. 2 Balance Sheet Cash on Hand 10. 8 16. 8 5. 7 8. 2 19. 0 6. 9 Current Assets 504. 0 528. 7 610. 2 490. 0 541. 4 544. Non Current Assets 3,700. 8 3,802. 1 3,656. 8 3,574. 0 2,048. 7 2,075. 7 Total Assets 4,204. 8 4,330. 8 4,267. 0 4,064. 0 2,590. 1 2,620. 3 Current Liabilities 493. 8 430. 6 520. 7 512. 6 525. 5 544. Non Current Liabilities 1,477. 6 1,481. 0 1,254. 1 1,057. 9 1,316. 4 1,247. 5 Total Liabilities 1,971. 4 1,911. 6 1,774. 8 1,570. 5 1,841. 0 1,792. 0 Equity 2,233. 4 2,419. 2 2,492. 2 2,493. 5 748. 2 828. Cash Flow Statement Net Cash from Operating Activities 231. 1 232. 9 274. 0 334. 0 308. 0 298. 5 Net Cash from Investing Activities -399. 6 -108. 0 -99. 2 20. 8 -112. 6 -73. 3 Net Cash from Financing Activities 168. 4 -117. 3 -218. 6 -319. 4 -184. 6 -237. Earnings per Share 34. 0 33. 7 37. 9 42. 1 48. 6 50. 2 Appendix H Competitors Financial Analysis Exhibit 1 Foster Group Ltd Financial Statement 2002-07 Fosters Group Ltd ( consolidated figures) Amount in AUD/ million 2002 2003 2004 2005 2006 2007 Sales revenue 4,572. 0 4,731. 5 3,908. 0 3,972. 3 4,533. 7 4,760. Gross profit 2,273. 0 2,344. 6 1,887. 2 1,981. 5 2,067. 1 2,094. 7 EBIT 1,038. 6 1,023. 4 949. 0 1,257. 0 1,065. 7 1,116. 8 NPAT 560. 9 470. 4 806. 0 941. 0 1,169. 8 969. Marketing Expenses 300. 8 313. 5 343. 8 379. 6 350. 8 360. 1 Total Assets 9,511. 0 9,588. 9 8,443. 1 11,745. 3 10,439. 1 9,563. 0 Total Liabilities 5,299. 1 5,095. 8 3,842. 9 6,801. 2 5,957. 4 4,929. Total Equity 4,211. 9 4,493. 1 4,600. 2 4,944. 1 4,481. 7 4,633. 2 Ratio analysis NPM ratio 12. 3 9. 9 20. 6 23. 7 25. 8 20. GPM ratio 49. 7 49. 6 48. 3 49. 9 45. 6 44. 0 ROE 13. 3 10. 5 17. 5 19. 0 26. 1 20. 9 ROA 10. 9 10. 7 11. 2 10. 7 10. 2 11. Debt to Equity Ratio 125. 8 113. 4 83. 5 137. 6 132. 9 106. 4 Exhibit 2 FGL Sales Revenue 2002-07 Exhibit 3 FGL Marketing Expense 2002-07 Exhibit 4 Net Profit Margin Foster Group Ltd. Exhibit 5 Gross Profit Margin Foster Group Ltd. 2002-07 Exhibit 6 Return on Equity Foster Group Ltd. 2002-07 Exhibit 7Debt to Equity Ratio Fosters Group Ltd. picpicpic 1 2007 Annual Report Lion Nathan Ltd Australia segmental 2 Porter, What is strategy? , pp 61-78. The imagination of Product Life Cycle postulates that products, like hu man beings, pass through a number of different phases or stages of their life. The stages are described as introduction, growth, competitive turbulence, maturity and decline. GE/McKinsey Model BCG is a two dimentional model based on market growth and relative market share. The graph on the left sumarises the results obtained for the BCG analysis conducted for the James Boag premium beer line. (For further details refer to Appendix CExhibit 1 ). BCG Model another(prenominal) tool used to identify effective product strategies is the GE / McKinsey model. This is used to identify the attractiveness of the market and the relative position of the brand. (For further details refer to Appendix C Exhibit 2 ).