Coconut Oil Essay

Edible oils are found in large amounts in our daily diets hence adding up to a great amount of fatty acids in our system. Examples are in our stews, some soups, several rice dishes, fried or grilled meat and fish. Many have thus perceived that oil has been the cause for several of the ailments that have plagued and still plague our race, especially heart disease and other related cholesterol issues (Blonz, 1991).Nature gives the best source of oils, such as palm kernel and coconut oil. Coconut oil was maligned as one of such oils by the American Soybean Association (ASA), when the true cause was rather the vegetable oils in our food. Why was coconut oil the victim and what truly does coconut oil do? Coconut is scientifically known as Cocos nucifera. Coconut oil, just one of the many products from the coconut plant, comprises medium-chain fatty acids (MCFAs) found also in breast milk, which strengthen the immunity of babies to diseases.Coconut oil is in two main types; RBD (Refined, bleached and deodorized) coconut oil and Virgin coconut oil (the others that are often seen on the market are just versions of these two).The difference is characterized by the amount of processing the oil undergoes. RBD oils are made from dried coconut meat, ‘copra’ as Virgin oil is made from fresh coconut meat, ‘non-copra’. Another method for differentiating them is by their smell and taste (Fife, 2005). Virgin coconut oil is highly favoured due to its flavoured taste and sweet aroma in comparison to its counterpart, RBD oil which is bland. Coconut oil is referred to generally as the â€Å"functional food† by dieticians, since it possesses health benefits beyond its nutritional content. Diabetic and hypoglycaemic patients have at certain instances being prescribed coconut oil, based on scientific evidence that it gives the user energy, much more than those found in glucose or insulin, not fat as do the other oils (vegetable oils) we take in daily, which contain long-chain fatty acids (LCFAs) which require the pancreatic enzymes and bile from the gall bladder, necessary for fat digestion. After breakage of the LCFAs, the individual fatty acids are then absorbed into the intestinal walls and converted into little fat bundles (lipoproteins). As the lipoproteins circulate the body through the blood, small fats are released from them, thus causing the fat that collects in arteries, clogging blood flow and thus leading to atherosclerosis and its kind. LCFAs are found largely in vegetable oils which we consume incessantly every day, in our meals, like our beef, chicken, some butter, corn and in most palm oils. MCFAs on the other hand, are easily soluble in water so they are easily taken into the intestinal tract, needing very little activity from the enzymes and bile, thus travel straight to the liver through the portal vein as they bypass the lipoprotein formation stage. So, they do not circulate the blood as other fats do they just produce the needed energy for the body’s usage. This was proven by Applegate (1996) as essential for use by even athletes and some other professionals. Due to the easy ability of MCFAs to be digested, they tend to also improve the absorption of nutrients, taken with it. The inclusion of coconut oil in diets, enhances calcium, fat soluble vitamins (A, D, E and K) and some of the B vitamins uptake by the body, this is possible by the coconut oil being able to quickly get into the bloodstream as it needs less work done on it by the enzymes and other factors present. The coconut oil can be applied on the skin of patients or people whofind it difficult to ingest substances or have problems with their digestive tracts. Consumers of coconut oil have also testified that, it serves as a sort of weight manager. The underweight and malnourished have testified that it increased their weight considerably, as the overweight and obese said they experienced loss in weight, all because the presence of coconut oil controls the rate of metabolism. Metabolism is evaluated by measuring energy expenditure, which is the rate at which calories are consumed. The MCFAs found in coconut oil, according to research has been seen to cure, even prevent the most infectious of diseases, making it difficult for fungal (ringworm, athlete’s foot and candidiasis), bacterial (ulcers, pneumonia and gonorrhoea) and viral (influenza, measles, hepatitis C) infections to exist in any condition in which they both exist. For this reason, many medical professionals have instilled the practice of adding coconut oil to their formulas. These sightings of the antimicrobial property of coconut oil, were first reported by Jon Kabara, Ph.D. in 1966, when trying to solve food preservation problems. Parasites, such as giardia were also discovered to be affected by this action of the oil. According to Fife (1996), the antimicrobial action undertaken by coconut oil, can be briefly explained based on the size of the trans fatty acid (medium) and its reaction when in man. The MCFAs in coconut oil (namely, lauric acid, capric acid and caprylic acid) are broken down to short-chain fatty acids, SCFAs (monolaurin, monocaprylin and monocaprin); only then, do they become activated in the digestive tract. Each SCFA has a specific function, thus they synergistically work together to destroy germs. As a result, studies are on the path to obtain the cures for the currently tormenting infirmities that we live with, AIDS and SARS, to name a few are still under the microscope, undergoing gruesome tests to see how best they can be eradicated. Truly nature is serving us with a panacea, but whether we’ll take it depends on us. To further buttress on the attributed medical prowess possessed by coconut oil, consider Porfirio (Paul) Sorse, a Filipino, who later turned an American because the Philippines were a U.S. territory and served as cook in the First World War. Paul was considered by many as a remarkable individual who lived by coconut oil. He was hailed by those living close to him as a physician, all because he miraculously cured many conditions with the application of coconut oil to the affected region, be it internal or external. He was even approached by somepharmaceutical companies, all in search for his secret formula in making the oil, which he refused. Paul used the oil for every imaginable use; as a lotion, in cooking, as a drug, for massages and the lot. Paul died at the ripe age of 102, not suffering any ailment, as he never smoked or drunk in his entire life but survived on coconut oil (Fife, 2005). Coconut oil can cure every ailment in this world though not yet completely proven with scientific facts for some of them. Many ailments have so far being treated with coconut oil and have been flushed out of the systems of the ill. Though the list is quite lengthy, it contains many familiar names, a few include; aches and pains, acne, allergies, arthritis and stiff joints, asthma, athlete’s foot, atherosclerosis, bad breath and body odour, insect bites and stings, bladder infection, bacterial and viral infections, blisters, blood pressure, boils, bruises, cancer, candidiasis, cataracts, colds, liver disease, constipation, dandruff, diabetes, insomnia, indigestion, nose bleed, obesity, ulcer and wrinkles. As a medicine, coconut oil can also be included in diets to treat illnesses, that is serving as cooking oil or even just mixed with any food. It can also be applied on the skin as a lotion, hair pomade, massaging oil or suntan oil. The direct application of coconut oil to the skin, allows the body easily get access to the nutrients for energy, as a result giving the skin the much sought smoothness that the ailment might have tampered with. In other words producing a more happy, healthy and beautiful handsome you free from any ailment as the immunity of the human is enhanced. These facts go a long way to disprove the evidence provided, that coconut oil is the cause of heart diseases and explains why coconut lovers or coconut bearing communities live longer and experience at times no illness in their lives. REFERENCES Applegate, L. (1996). Runners World. Nutrition, (31), 26-27. Blonz, E.R. (1991, January 23). Scientists revising villain status of coconut oil. Oakland Tribune, p. 22. Fife, B. (2005). Coconut cures: Preventing and Treating Common Health Problems with Coconut. Colorado: Piccadilly Books Limited. Fife, B. (1996). Coconut: Eat fat, Lose weight. Retrieved April 3, 2011 from the World Wide Web: http://www.simplycoconut.com//

Soap in Philippines

INDUSTRY PROFILE Soap in Philippines Reference Code: 0115-0208 Publication Date: April 2011 www. datamonitor. com Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: [email  protected] com Datamonitor Europe 119 Farringdon Road London EC1R 3DA United Kingdom t: +44 20 7551 9000 f: +44 20 7675 7500 e: [email  protected] com Datamonitor Middle East and North Africa Datamonitor PO Box 24893 Dubai, UAE t: +49 69 9754 4517 f: +49 69 9754 4900 e: [email  protected] datamonitor. com Datamonitor Asia Pacific Level 46, 2 Park Street Sydney, NSW 2000 Australia : +61 2 8705 6900 f: +61 2 8705 6901 e: [email  protected] com Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 1 EXECUTIVE SUMMARY EXECUTIVE SUMMARY Market value The Philippine soap market grew by 3. 7% in 2010 to reach a value of $132. 2 million. Market value forecast In 2015, t he Philippine soap market is forecast to have a value of $156. 8 million, an increase of 18. 6% since 2010. Market volume The Philippine soap market grew by 2. 4% in 2010 to reach a volume of 93. 7 million units. Market volume forecastIn 2015, the Philippine soap market is forecast to have a volume of 103. 9 million units, an increase of 10. 9% since 2010. Market segmentation I Bar soap is the largest segment of the soap market in Philippines, accounting for 89. 6% of the market's total value. Market segmentation II Philippines accounts for 2. 3% of the Asia-Pacific soap market value. Market share Procter & Gamble Company, The is the leading player in the Philippine soap market, generating a 64. 4% share of the market's value. Market rivalry The Philippines soap market is highly concentrated with top three players accounting for 82. 2% of the total market value.Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0 208 – 2010 Page 2 CONTENTS TABLE OF CONTENTS EXECUTIVE SUMMARY MARKET OVERVIEW Market definition Research highlights Market analysis MARKET VALUE MARKET VOLUME MARKET SEGMENTATION I MARKET SEGMENTATION II MARKET SHARE FIVE FORCES ANALYSIS Summary Buyer power Supplier power New entrants Substitutes Rivalry LEADING COMPANIES Procter & Gamble Company, The Colgate-Palmolive Company Unilever MARKET DISTRIBUTION MARKET FORECASTS Market value forecast Market volume forecast MACROECONOMIC INDICATORS APPENDIX Methodology Philippines – Soap Datamonitor. This profile is a licensed product and is not to be photocopied 2 7 7 8 9 10 11 12 13 14 15 15 16 17 18 19 20 21 21 26 31 35 36 36 37 38 40 40 0115 – 0208 – 2010 Page 3 CONTENTS Industry associations Related Datamonitor research Disclaimer ABOUT DATAMONITOR Premium Reports Summary Reports Datamonitor consulting 41 41 42 43 43 43 43 Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 4 CONTENTS LIST OF TABLESTable 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17: Table 18: Table 19: Table 20: Table 21: Table 22: Table 23: Table 24: Philippines soap market value: $ million, 2006–10(e) Philippines soap market volume: million units, 2006–10(e) Philippines soap market segmentation I:% share, by value, 2010(e) Philippines soap market segmentation II: % share, by value, 2010(e) Philippines soap market share: % share, by value, 2010(e) Procter & Gamble Company, The: key facts Procter & Gamble Company, The: key financials ($) Procter & Gamble Company, The: key financial ratios Colgate-Palmolive Company: key facts Colgate-Palmolive Company: key financials ($) Colgate-Palmolive Company: key financial ratios Unilever: key facts Unilever: key financials ($) Unilever: key financials (â‚ ¬) Unile ver: key financial ratios Philippines soap market distribution: % share, by value, 2010(e) Philippines soap market value forecast: $ million, 2010–15 Philippines soap market volume forecast: million units, 2010–15 Philippines size of population (million), 2006–10 Philippines gdp (constant 2000 prices, $ billion), 2006–10 Philippines gdp (current prices, $ billion), 2006–10 Philippines inflation, 2006–10 Philippines consumer price index (absolute), 2006–10 Philippines exchange rate, 2006–10 10 11 12 13 14 21 24 24 26 28 29 31 33 33 33 35 36 37 38 38 38 39 39 39 Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 5 CONTENTS LIST OF FIGURESFigure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Philippines soap market value: $ million, 2006–10(e) Philippines soap market volume: million units, 2006à ¢â‚¬â€œ10(e) Philippines soap market segmentation I:% share, by value, 2010(e) Philippines soap market segmentation II: % share, by value, 2010(e) Philippines soap market share: % share, by value, 2010(e) Forces driving competition in the soap market in Philippines, 2010 Drivers of buyer power in the soap market in Philippines, 2010 Drivers of supplier power in the soap market in Philippines, 2010 Factors influencing the likelihood of new entrants in the soap market in Philippines, 2010 Factors influencing the threat of substitutes in the soap market in Philippines, 2010 Drivers of degree of rivalry in the soap market in Philippines, 2010 Procter & Gamble Company, The: revenues & profitability Procter & Gamble Company, The: assets & liabilities Colgate-Palmolive Company: revenues & profitability Colgate-Palmolive Company: assets & liabilities Unilever: revenues & profitability Unilever: assets & liabilities Philippines soap market distribution: % share, by value, 2010(e) Philippines soap market value forecast: $ million, 2010–15 Philippines soap market volume forecast: million units, 2010–15 10 11 12 13 14 15 16 17 18 19 20 25 25 29 30 34 34 35 36 37 Figure 10: Figure 11: Figure 12: Figure 13: Figure 14: Figure 15: Figure 16: Figure 17: Figure 18: Figure 19: Figure 20: Philippines – Soap  © Datamonitor.This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 6 MARKET OVERVIEW MARKET OVERVIEW Market definition The soap market consists of retail sales of bar soap and liquid soap. The market is valued according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report have been calculated using constant 2010 annual average exchange rates. For the purpose of this report Asia-Pacific comprises Australia, China, Japan, India, Singapore, South Korea, Indonesia, the Philippines, Thailand, Vietnam, New Zealand, Hong Kong, Malaysia, Pak istan and Taiwan. Philippines – Soap  © Datamonitor.This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 7 MARKET OVERVIEW Research highlights The Philippines soap market generated total revenues of $132. 2 million in 2010, representing a compound annual growth rate (CAGR) of 3. 9% for the period spanning 2006-2010. Bar soap sales proved the most lucrative for the Philippines soap market in 2010, generating total revenues of $118. 5 million, equivalent to 89. 6% of the market's overall value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 3. 5% for the fiveyear period 2010-2015, which is expected to lead the market to a value of $156. million by the end of 2015. Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 8 MARKET OVERVIEW Market analysis The Philippines soap market grew at a steady rate during the period 2006-2010, as a result of steady sales growth in the liquid soap and bar soap categories. The overall market growth is expected to decelerate in the forthcoming five years. The Philippines soap market generated total revenues of $132. 2 million in 2010, representing a compound annual growth rate (CAGR) of 3. 9% for the period spanning 2006-2010. In comparison, the Malaysian and Thai markets grew with CAGRs of 3. 2% and 3. % respectively, over the same period, to reach respective values of $60. 7 million and $182 million in 2010. Market consumption volumes increased with a CAGR of 2. 7% between 2006 and 2010, to reach a total of 93. 7 million units in 2010. The market's volume is expected to rise to 103. 9 million units by the end of 2015, representing a CAGR of 2. 1% for the 2010-2015 period. Bar soap sales proved the most lucrative for the Philippines soap market in 2010, generating total revenues of $118. 5 million, equivalent to 89. 6% of the market's overall va lue. In comparison, sales of liquid soap generated revenues of $13. 8 million in 2010, equating to 10. % of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 3. 5% for the fiveyear period 2010-2015, which is expected to lead the market to a value of $156. 8 million by the end of 2015. Comparatively, the Malaysian and Thai markets will grow with CAGRs of 2. 6% and 2. 1% respectively, over the same period, to reach respective values of $69 million and $201. 8 million in 2015. Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 9 MARKET VALUE MARKET VALUE The Philippine soap market grew by 3. 7% in 2010 to reach a value of $132. million. The compound annual growth rate of the market in the period 2006–10 was 3. 9%. Table 1: Year 2006 2007 2008 2009 2010(e) CAGR: 2006–10 Source: Datamonitor Philippines soap market value: $ million, 2006–10(e) $ million 113. 6 118. 3 122. 9 127. 5 132. 2 PHP million 5,137. 1 5,350. 2 5,557. 8 5,768. 8 5,982. 8 â‚ ¬ million 85. 5 89. 1 92. 6 96. 1 99. 6 % Growth 4. 1 3. 9 3. 8 3. 7 3. 9% DATAMONITOR Figure 1: Philippines soap market value: $ million, 2006–10(e) Source: Datamonitor DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 10 MARKET VOLUME MARKET VOLUMEThe Philippine soap market grew by 2. 4% in 2010 to reach a volume of 93. 7 million units. The compound annual growth rate of the market in the period 2006–10 was 2. 7%. Table 2: Year 2006 2007 2008 2009 2010(e) CAGR: 2006–10 Source: Datamonitor Philippines soap market volume: million units, 2006–10(e) million units 84. 2 86. 6 89. 1 91. 5 93. 7 % Growth 2. 9 2. 9 2. 7 2. 4 2. 7% DATAMONITOR Figure 2: Philippines soap market volume: million units, 2006–10 (e) Source: Datamonitor DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 11 MARKET SEGMENTATION I MARKET SEGMENTATION IBar soap is the largest segment of the soap market in Philippines, accounting for 89. 6% of the market's total value. The liquid soap segment accounts for the remaining 10. 4% of the market. Table 3: Category Bar soap Liquid soap Total Source: Datamonitor Philippines soap market segmentation I:% share, by value, 2010(e) % Share 89. 6% 10. 4% 100% DATAMONITOR Figure 3: Philippines soap market segmentation I:% share, by value, 2010(e) Source: Datamonitor DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 12 MARKET SEGMENTATION II MARKET SEGMENTATION II Philippines accounts for 2. 3% of the Asia-Pacific soap market value.Thailand accounts for a further 3. 1 % of the Asia-Pacific market. Table 4: Category Thailand Philippines Malaysia New Zealand Rest of Asia-Pacific Total Source: Datamonitor Philippines soap market segmentation II: % share, by value, 2010(e) % Share 3. 1% 2. 3% 1. 0% 0. 4% 93. 3% 100% DATAMONITOR Figure 4: Philippines soap market segmentation II: % share, by value, 2010(e) Source: Datamonitor DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 13 MARKET SHARE MARKET SHARE Procter & Gamble Company, The is the leading player in the Philippine soap market, generating a 64. % share of the market's value. Colgate-Palmolive Company accounts for a further 16% of the market. Table 5: Company Procter & Gamble Company, The Colgate-Palmolive Company Unilever Others Total Source: Datamonitor Philippines soap market share: % share, by value, 2010(e) % Share 64. 4% 16. 0% 1. 9% 17. 8% 100% DATAMONITOR Figure 5: Philippines soap market share: % share, by value, 2010(e) Source: Datamonitor DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 14 FIVE FORCES ANALYSIS FIVE FORCES ANALYSIS The soap market will be analyzed taking manufacturers of soaps as players.The key buyers will be taken as distributors of soaps such as retailers, and suppliers of lye, solid fats and further inputs (e. g. water, antibacterial agents and moisturizers) used in the production of soaps as the key suppliers. Summary Figure 6: Forces driving competition in the soap market in Philippines, 2010 Source: Datamonitor DATAMONITOR The Philippines soap market is highly concentrated with top three players accounting for 82. 2% of the total market value. The market has the presence of leading players like Procter & Gamble Company, Colgate-Palmolive and Unilever. Independent retailers are the main buyers in the Philippines soap market.Supp liers to the personal hygiene market are also weakened by the scale of market players. Suppliers of ingredients and packaging are smaller relative to manufacturers, which decreases supplier power in this market. However, suppliers provide for a diverse client base and correspondingly supplier power is assessed as moderate overall. Attempting to enter this market is precarious, with new entrants competing with numerous sophisticated companies with large scale economies. The market is well developed and many of the players sell similar products, leading to an intensely competitive environment, with players competing for the same share of the market.However, the diversity of products offered by the market players reduces rivalry to a certain degree. Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 15 FIVE FORCES ANALYSIS Buyer power Figure 7: Drivers of buyer power in the soap market in Phi lippines, 2010 Source: Datamonitor DATAMONITOR In Philippines, the main distribution channels for the soaps are independent retailers, which account for 52. 8% of the total sales value. Retailers often occupy a position of power in the supply chain which allows them to negotiate favorable contracts with manufacturers, this enhances buyer power.Furthermore, soaps are just one of a wide range of products sold by most retailers: this reduces the importance of this product to buyers, thus increasing buyer power further. However, branding is an important way of maintaining end-user loyalty, and as a result retailers are required to stock the more popular brands, which reduce their bargaining strength and buyer power. Overall buyer power is assessed as moderate. Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 16 FIVE FORCES ANALYSIS Supplier power Figure 8: Drivers of supplier power in the so ap market in Philippines, 2010 Source: Datamonitor DATAMONITORCommercial bar soaps contain sodium tallowate, sodium cocoate, sodium palmate and similar ingredients, all of which are the results of reacting solid fats (tallow, coconut oil, and palm kernel oil respectively) with lye. Therefore key suppliers to the soap market are suppliers of lye, solid fats and further inputs (e. g. water, antibacterial agents and moisturizers) used in the production of liquid soaps. Chemical suppliers often supply lye to manufacturers, and these companies are often relatively largescale and few in number, which increases supplier power. Overall, supplier power is assessed as moderate in the Philippines soap market. Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 115 – 0208 – 2010 Page 17 FIVE FORCES ANALYSIS New entrants Figure 9: Factors influencing the likelihood of new entrants in the soap market in Philippines, 2010 Source : Datamonitor DATAMONITOR There is limited product differentiation within the soap market, with the key segments consisting of bar and liquid soaps, and this coupled with weak market growth may act as a deterrent to potential new entrants. However, product variations can be achieved through the use of fragrances, and shape or design of soap bars etc. It may be possible for new entrants to achieve relative success stressing artisan production methods, e. g. handmade, natural aromatherapy soaps.Furthermore, it is important for new entrants to find a place for their products on the supermarket and drug store shelves; and as retail space is a finite resource, this means that new entrants must persuade the stores that it is worth displacing older brands to make way for a new product. Overall, the likelihood of new entrants is moderate. Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 18 FIVE FORCES ANALYSIS Substitutes Figure 10: Factors influencing the threat of substitutes in the soap market in Philippines, 2010 Source: Datamonitor DATAMONITOR Substitutes to manufactured soap bars, and liquid soaps can be achieved through homemade versions of soaps. This method would allow consumers to tailor their production method with ingredients to suit their preferences.However, it is likely to be more expensive to buy ingredients separately than manufactured soaps, and the method used to produce the soap is relatively time consuming. Furthermore, the end results may also be unpredictable and would not produce the desired results compares to branded soaps. These factors are likely to limit the threat of such substitutes. Overall, the threat of substitutes is assessed as weak. Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 19 FIVE FORCES ANALYSIS Rivalry Figure 11: Drivers of degree of rivalry in the soap market in Philippines, 2010 Source: Datamonitor DATAMONITOR The Philippines soap market is highly concentrated with top three players accounting for 82. 2% of the total market value.These companies are largely diversified, with product ranges covering markets beyond other personal care products, with leading player Colgate-Palmolive offering consumer products such as oral care, household surface, fabric care and pet nutrition products. This means that players aren't heavily reliant upon sales of soap products, which reduces the degree of rivalry to an extent. Overall, there is a moderate degree of rivalry in the Philippines soap market. Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 20 LEADING COMPANIES LEADING COMPANIES Procter & Gamble Company, TheTable 6: Head office: Telephone: Local office: Telephone: Website: Financial year-end: Ticker: Stock exchange: Sour ce: company website Procter & Gamble Company, The: key facts One Procter & Gamble Plaza, Cincinnati, Ohio 45201, USA 1 513 983 1100 Distributing Philippines Inc. , 6750 Ayala Office Tower, Makati 1226, PHI 63 2 894 39 55 www. pg. com June PG New York DATAMONITOR Procter & Gamble Company (P) is engaged in the manufacture and marketing of consumer products. The company markets more than 300 brands in over 180 countries spanning the Americas, Europe, the Middle East and Africa (EMEA), and Asian region. It is headquartered in Cincinnati, Ohio and employs about 127,000 people.P sells its products through mass merchandisers, grocery stores, membership club stores, drug stores and in high-frequency stores. P is organized into three global business units (GBUs) and a global operations group. The GBUs of the company comprise beauty and grooming, health and well-being, and household care business units. The GBUs identify common consumer needs, develop new products and build its brands. The bu siness units comprising the GBUs are aggregated into six reportable segments: beauty; grooming; health care; snacks and pet care; fabric care and home care; and baby care and family care. The beauty GBU comprises the beauty and the grooming businesses; the health and well-being GBU consists of the health care, and the snacks and pet care businesses.The household care GBU comprises the fabric care and home care as well as the baby care and family care businesses. The beauty segment includes cosmetics, deodorants, hair care, skin care, prestige fragrances and personal cleansing. The hair care sub-segment consists of conditioner, hair colorants, salon products, shampoo and styling agents. The key brands offered by the segment include Head & Shoulders, Olay, Pantene, Head and Shoulders, Aussie, Fekkai, Nioxin and Wella. The key brands offered in the Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 201 0 Page 21 LEADING COMPANIES deodorant category include Old Spice, Secret and Gillette.Personal cleansing products include brands such as Camay, Gillette, Ivory, Olay, Old spice, and Zest in the body wash category. In September 2008, the Procter & Gamble acquired NIOXIN Research Laboratories, a player in the scalp care professional haircare segment. NIOXIN offers a range of products that focus on the scalp and are distributed through salons and salon stores in more than 40 countries. In April 2009, P sold its ethnic hair care company Johnson Products to a group of investors. Johnson Products is a major player in the ethnic hair care market in Americas with a range of 30 products that includes the Gentle Treatment and Ultra Sheen brands.In the same year P sold of its global Infusium 23 hair care business to Helen of Troy, a designer, developer and worldwide marketer of personal care and household consumer products. The grooming segment comprises blades and razors, face and shave prepa ration products (such as shaving cream), electric hair removal devices and small household appliances. The key brands marketed by the grooming segment include Braun, Fusion, Gillette and Mach3. The electric hair removal devices and small home appliances are marketed under the Braun brand. The healthcare segment includes oral care, feminine care, pharmaceuticals and personal health care businesses.The oral care products are marketed worldwide under the brands Crest and Oral-B. In December 2008, Panasonic Electric Works entered into a supply agreement with P to supply its Palsonic electric toothbrush, which P introduced in the US and European markets during late 2009 under its own brand name. In pharmaceuticals and personal health, P serves the global bisphosphonates market for the treatment of osteoporosis under the Actonel brand. It leads the market in nonprescription heartburn medications and in respiratory treatments. The snacks and pet care segment markets its products under the brands lams and Pringles. In the snacks business, the company sells potato chips through its Pringles brand.The fabric care and home care segment offers a wide range of fabric care products including laundry cleaning products and fabric conditioners; and home care products, including dish care, surface cleaners and air fresheners; and batteries. The segment markets its products under Ariel, Dawn, Downy, Duracell, Gain and Tide brands. The dish care products are offered under Cascade, Dawn, Ivory, Ariel and Joy brands. The baby care and family care segment offers baby wipes, bath tissues, diapers, facial tissues and paper towels under the following brands: Bounty, Charmin and Pampers. The company’s family care business primarily operates in North America.The global operations group consists of the market development organization (MDO) and global business services (GBS). The MDO comprises retail customer, trade channel and country-specific teams. It is Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 22 LEADING COMPANIES organized along five geographic regions: North America, Western Europe, Central & Eastern Europe/Middle East/Africa (CEEMEA), Latin America and Asia (comprises Japan, Greater China and ASEAN/Australia/India/Korea (AAIK)). The GBS also provides technology, processes and standard data tools to support the operations of GBUs and the MDO.P also operates P Professional, a business-to-business division that serves food services, commercial cleaning, lodging and vending industries. The company's North American operation covers Canada, Puerto Rico and the US regions. P&G has a presence in every country in Western Europe. In Western Europe, the company operates about 35 manufacturing plants and markets over 100 brands. P&G's CEEMEA includes the Balkans, Central Europe North, Central Europe South, Eastern Europe, Middle East, Sub Sahara, Turkey/Caucasia and the Central Asian Republics. In Latin America, the company operates 19 manufacturing sites, 12 distribution centers and a service center in 14 countries.P's Asian operation covers China, Japan, Korea, Hong Kong, India, Australia, New Zealand, Indonesia, Philippines, Singapore, Taiwan, Vietnam, Thailand, Sri Lanka, Malaysia and Bangladesh. P&G operates across Western Europe. The region accounts for about a quarter of the company’s total business. P&G markets over 100 brands in Europe. Some major brands marketed by the company in Europe include Pampers, Oral-B, Ariel, Always, Pantene, Mach3, Herbal Essences, Pringles, Lenor, Iams, Duracell, Olay, Head & Shoulders, Wella, Gillette, and Braun. P&G launched Fairy autodishwashing in Western Europe in FY2008. The Asia-Pacific operations of P&G are divided into three sub-regions: Asean, Australia and India (AAI), Greater China (China and Taiwan) and North Asia (Japan and Korea).However, P&G is centralizing its Asia-Pacific opera tions into a single entity to increase its focus on emerging economies. The company is expected to merge GBUs for the three regional hubs into one to improve efficiency. In February 2010, P&G launched a plant-based hair care range under the brand Nature Fusion, comprising shampoo, conditioner and leave-in conditioner. The product range consists of ingredients derived from plants known for their traditional medicinal qualities. Key Metrics Procter & Gamble generated revenues of $78. 9 billion in the financial year (FY) ended June 2010, an increase of 2. 9% over 2009. The company's net income totaled $12. 7 billion in FY2010, a decrease of 5. 2% over 2009.The beauty and grooming GBU accounted for 34. 4% of the total revenues in FY2010. Revenues from beauty and grooming GBU reached $27. 1 billion in FY2010, an increase of 3% over FY2009. Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 23 L EADING COMPANIES Table 7: $ million Procter & Gamble Company, The: key financials ($) 2006 68,222. 0 8,684. 0 135,695. 0 72,787. 0 138,000 2007 74,832. 0 10,340. 0 138,014. 0 71,254. 0 138,000 2008 79,257. 0 12,075. 0 143,992. 0 74,498. 0 138,000 2009 76,694. 0 13,436. 0 134,833. 0 71,451. 0 135,000 2010 78,938. 0 12,736. 0 128,172. 0 66,733. 0 127,000Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings DATAMONITOR Table 8: Ratio Procter & Gamble Company, The: key financial ratios 2006 12. 7% 20. 2% 120. 5% 69. 1% 53. 6% 8. 8% $494,362 $62,928 2007 13. 8% 9. 7% 1. 7% (2. 1%) 51. 6% 7. 6% $542,261 $74,928 2008 15. 2% 5. 9% 4. 3% 4. 6% 51. 7% 8. 6% $574,326 $87,500 2009 17. 5% (3. 2%) (6. 4%) (4. 1%) 53. 0% 9. 6% $568,104 $99,526 2010 16. 1% 2. 9% (4. 9%) (6. 6%) 52. 1% 9. 7% $621,559 $100,283 Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company fil ings DATAMONITORPhilippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 24 LEADING COMPANIES Figure 12: Procter & Gamble Company, The: revenues & profitability Source: company filings DATAMONITOR Figure 13: Procter & Gamble Company, The: assets & liabilities Source: company filings DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 25 LEADING COMPANIES Colgate-Palmolive Company Table 9: Colgate-Palmolive Company: key facts 300 Park Avenue, New York City, New York 10022, USA 1 212 310 2000 1 212 310 3284 www. colgate. om December CL New York DATAMONITOR Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website Colgate-Palmolive Company (Colgate) engages in the manufacture and marketing of a wide range of consumer products such as toothpastes, toothbrushes, detergents, shower gels, conditioners, shampoos, cleansers, bleaches and pet foods. The company markets its products in over 200 countries and territories throughout the world. It is headquartered in New York, the US and employs around 39,200 people. Colgate owns more than 80 brands across various product categories such as oral care, personal care, home care and pet nutrition.The principal global and regional trademarks owned by the company include Colgate, Palmolive, Mennen, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, Elmex, Tom’s of Maine, Ajax, Axion, Fabuloso, Soupline, Suavitel, Hill’s Science Diet and Hill’s Prescription Diet. The company operates in two product segments: oral, personal and home care; and pet nutrition. The oral, personal and home care segment operates through four geographic divisions: North America, Latin America, Europe/South Pacific and Greater Asia/Africa, which sell to a variety of retail and wholesale customers and distributors. The oral care business of Colgate includes products such as toothpaste, toothbrushes, oral rinses and dental floss, and pharmaceutical products for dentists and other oral health professionals.The company offers a wide variety of toothpaste, which includes plaque and gingivitis prevention toothpaste, long lasting fresh breath toothpaste, tartar control toothpaste, baking soda and peroxide toothpaste, cavity protection toothpaste, and sensitivity relief toothpaste under the Colgate brand. The company also provides two types of toothbrushes: conventional and electric toothbrushes. The conventional toothbrushes include whole mouth clean toothbrush, fresh breath toothbrush, flexible head toothbrush Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 26 LEADING COMPANIES nd deep cleaning toothbrush. The company markets toothpastes under Colgate To tal and Colgate Max Fresh brands; manual toothbrushes under the Colgate 360 ° brand name; and oral rinses under Colgate and Colgate Plax brand names. The personal care business in the US offers shower gels, bar soaps, deodorants, antiperspirants, men's toiletries and liquid hand soaps. Outside the US, the business also offers shampoos and conditioners under the brands Palmolive and Caprice. Colgate markets shower gels through Palmolive and Softsoap brands; bar soaps under Palmolive, Irish Spring and Protex brands; and deodorants and antiperspirants under Speed Stick and Lady Speed Stick brands.The deodorants offered by Colgate comprise gel, stick, fragrance, and antiperspirant/deodorants. The body wash product line includes advanced moisture body wash, nourishing body wash, and fragrance body wash products. The liquid hand soaps consist of antibacterial soap, foaming hand soap, kitchen soap, moisturizing soap, fragrance soap, and decor soap. The bar soap products offering include deodorant protection bar soap, antibacterial bar soap, invigorating bar soap, moisturizing bar soap, and exfoliating bar soap. The men's toiletries include shaving cream, lotion after shave, after shave, splash on after shave, and moisturizing after shave.The home care business manufactures and markets dishwashing liquids, fabric conditioners and household cleaners. Colgate offers a wide variety of dishwashing products under Palmolive, Axion and Ajax brands. The product offering includes hand dishwashing, sensitive skin, antibacterial, oxy cleaning agents, automatic dishwashers, original formula, fruit scent, and floral scent and natural scent dishwashing products. Colgate markets these products under Ajax, Splash, Spring Sensation, and Oxy Plus brands. The fabric conditioner products comprise liquid fabric conditioners, dryer sheets, dark colours formula, floral scent, natural scent, and baby powder scent.The household cleaners are marketed under Fabuloso and Ajax brands and includ e wood cleaner, floor cleaner, all purpose cleaner, powder cleanser, spray formula, pre moistened wipes, and fruit scented products. The pet nutrition segment operates through Hill's pet nutrition brand, which is sold principally through the veterinary professionals and specialty pet retailers. The company supplies specialty pet nutrition products for dogs and cats in over 95 countries. Hill's markets pet foods primarily under two trademarks: Science Diet and Prescription Diet. Science Diet products are sold by authorized pet supply retailers and veterinarians for everyday nutritional needs. The Prescription Diet includes therapeutic products sold by veterinarians which enable them to manage disease conditions in dogs and cats by improving nutrition value in food intake.In the US, Colgate has its manufacturing and warehousing facilities used by the oral, personal and home care segment business in Morristown, New Jersey; Morristown, Tennessee; and Cambridge, Ohio. The pet nutrition s egment has major facilities in Bowling Green, Kentucky; Topeka, Kansas; Commerce, California; and Richmond, Indiana. The primary research centre for oral, personal and home care Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 27 LEADING COMPANIES products is located in Piscataway, New Jersey and the primary research centre for pet nutrition products is located in Topeka, Kansas. Piscataway, New Jersey also serves as the company’s global data centre.Outside the US, Colgate operates manufacturing facilities for the oral, personal and home care segment in Australia, Brazil, China, Colombia, France, Italy, Mexico, Poland, South Africa, Thailand, Venezuela, Vietnam and elsewhere throughout the world. Colgate offers shampoos, bath and shower gels, hand soaps and liquid soaps, as well as shaving products in the personal care segment. The bath and shower gels are marketed under the brand s such as Palmolive Naturals, Palmolive Aroma, and Palmolive Thermal. Shampoos and liquid hand soaps are marketed under the Palmolive Naturals brand, and soaps under Palmolive Naturals and Palmolive Aroma brands.The company markets its hair care product under Palmolive Halo brand name. Key Metrics Colgate-Palmolive Company generated revenues of $15. 6 billion in the financial year (FY) ended December 2010, an increase of 1. 5% over FY2009. The company's net income totaled $2. 2 billion in FY2010, a decrease of 3. 8% over FY2009. The oral, personal and home care segment recorded revenues of $13. 5 billion in FY2010, an increase of 2. 2% over FY2009. Greater Asia/Africa accounted for 22. 2% of the total revenues of the oral, personal and home care segment in FY2010. Revenues from Greater Asia/Africa reached $3 billion in FY2010, an increase of 12. 9% over FY2009.Table 10: $ million Colgate-Palmolive Company: key financials ($) 2006 12,237. 7 1,353. 4 9,138. 0 7,727. 1 34,700 2007 13,7 89. 7 1,737. 4 10,112. 0 7,825. 8 36,000 2008 15,329. 9 1,957. 2 9,979. 3 7,935. 0 36,600 2009 15,327. 0 2,291. 0 11,134. 0 7,877. 0 38,100 2010 15,564. 0 2,203. 0 11,172. 0 8,355. 0 39,200 Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 28 LEADING COMPANIES Table 11: Ratio Colgate-Palmolive Company: key financial ratios 2006 11. 1% 7. 4% 7. 4% 8. 0% 84. 6% 15. % $352,671 $39,003 2007 12. 6% 12. 7% 10. 7% 1. 3% 77. 4% 18. 1% $383,047 $48,261 2008 12. 8% 11. 2% (1. 3%) 1. 4% 79. 5% 19. 5% $418,850 $53,475 2009 14. 9% N. M 11. 6% (0. 7%) 70. 7% 21. 7% $402,283 $60,131 2010 14. 2% 1. 5% 0. 3% 6. 1% 74. 8% 19. 8% $397,041 $56,199 Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings D ATAMONITOR Figure 14: Colgate-Palmolive Company: revenues & profitability Source: company filings DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 29LEADING COMPANIES Figure 15: Colgate-Palmolive Company: assets & liabilities Source: company filings DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 30 LEADING COMPANIES Unilever Table 12: Unilever: key facts Unilever House, 100 Victoria Embankment, London EC4Y 0DY, GBR 44 20 7822 5252 44 20 7822 5951 www. unilever. com December UL New York DATAMONITOR Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website Unilever is a global manufacturer and marketer of consumer goods in the food, personal and homecare segments.Unilever operates under a dual structure. The group has two parent companies: Unilever NV and Unilever plc. Unilever NV is a public limited company registered in the Netherlands, while Unilever plc is a public limited company registered in the UK and Wales. The two parent companies, Unilever NV and Unilever plc, along with the group companies, operate as a single economic entity: Unilever. It operates through subsidiaries in Germany, Switzerland, France, the UK, the US, and China and has operations in over 170 countries. The group's primary operating segments comprises three geographic regions: Asia, Africa, Central and Eastern Europe; the Americas; and Western Europe.Although Unilever's operations are managed on a geographical basis, the group manages its products under four categories: savoury, dressings and spreads; ice cream and beverages; personal care; and home care and other operations. These categories are Unilever’s principal product areas. The savoury, dressings and spreads product category includes products like soups, bou illons, sauces, snacks, mayonnaise, salad dressings, olive oil, margarines, spreads and cooking products such as liquid margarines, and frozen food products. Unilever's major brands in this segment includes: Knorr, Hellmann's, Becel/Flora (Healthy Heart), Rama/Blue Band (Family Goodness), Calve, Wish-Bone, Amora, Ragu and Bertolli.The company markets its frozen food products under Findus, Sagit, Cogesal and Iglo brand names among others. The ice cream and beverages product category includes sales of ice cream, tea-based beverages, weight management products, and nutritionally enhanced staples sold in developing markets. Unilever's major brands in ice cream are sold under the international Heart brand which includes Cornetto, Magnum, Carte Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 31 LEADING COMPANIES d’Or and Solero, Wall’s, Kibon, Algida and Ola. Its tea-based bever age brands include Lipton, Brooke Bond and PG Tips.In addition, Unilever has weight management products such as Slim Fast, and nutritionally enhanced products include Annapurna and AdeS brands. The personal care product category offers skin care, facial care and hair care products; deodorants and anti-perspirants; and oral care products. The company offers six global brands which are the core of company's business in the mass skin care, daily hair care and deodorants product areas that includes Dove, Lux, Rexona (including Sure and Degree), Sunsilk (including Seda/Sedal), Axe/Lynx and Pond’s. Other key brands include Suave, Clear, Lifebuoy and Vaseline, along with Signal and Close Up in the oral care category.In December 2010, the company acquired the personal care business of the Sara Lee Corporation, which was announced in September 2009. The Sara Lee brand includes Sanex, Radox and Duschdas. Home care and other operations include household products, such as laundry tablets , powders and liquids, soap bars and cleaning products. Unilever's global brands in home care products include Cif, Comfort, Domestos, Omo, Radiant, Surf and Sunlight brands. Other brands marketed by this segment include Omo Surf, Comfort, Radiant and Skip. During late 2008, Unilever further expanded its household and personal hygiene portfolio by acquiring Cosmivoire, a Cote d'Ivoire-based manufacturer and supplier of food, household, and personal hygiene products.Unilever also announced plans to expand its Asia Pacific operations within home care division. In line with this, Unilever Sri Lanka made an offer to acquire the trademark of Wonderlight Consumer Products Company, in February 2009. Wonderlight Consumer Products Company is a Sri Lankan-based manufacturer of laundry soaps, baby soap, herbal soap, toilet soap, washing powder, scouring powder, and dish powder. Key Metrics Unilever generated revenues of $58. 6 billion in the financial year (FY) ended December 2010, an increase of 11. 1% as compared to 2009. The company's net income reached $5. 6 billion in FY2010, an increase of 25. 9% over FY2009. Unilever’s personal care division recorded revenues of $18. billion in FY2010, an increase of 16. 2% over FY2009. Asia, Africa and Central & Eastern Europe, Unilever's largest geographical market, accounted for 40% of the total revenues in FY2010. Revenues from Asia, Africa and Central & Eastern Europe reached $23. 4 billion in FY2010, an increase of 18. 7% over FY2009. Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 32 LEADING COMPANIES Table 13: $ million Unilever: key financials ($) 2006 52,514. 3 6,285. 8 49,109. 8 33,647. 7 179,000 2007 53,236. 3 5,150. 5 49,414. 5 32,433. 0 174,000 2008 53,681. 4 6,659. 3 47,877. 8 34,137. 9 174,000 2009 52,754. 4,464. 3 49,035. 6 32,429. 0 163,000 2010 58,634. 5 5,622. 1 54,534. 5 34,560. 5 167,000 Revenues Net incom e (loss) Total assets Total liabilities Employees Source: company filings DATAMONITOR Table 14: â‚ ¬ million Unilever: key financials (â‚ ¬) 2006 39,642. 0 4,745. 0 37,072. 0 25,400. 0 2007 40,187. 0 3,888. 0 37,302. 0 24,483. 0 2008 40,523. 0 5,027. 0 36,142. 0 25,770. 0 2009 39,823. 0 3,370. 0 37,016. 0 24,480. 0 2010 44,262. 0 4,244. 0 41,167. 0 26,089. 0 Revenues Net income (loss) Total assets Total liabilities Source: company filings DATAMONITOR Table 15: Ratio Unilever: key financial ratios 2006 12. 0% 3. 2% (6. 1%) (17. 4%) 68. 5% 12. % $293,376 $35,116 2007 9. 7% 1. 4% 0. 6% (3. 6%) 65. 6% 10. 5% $305,956 $29,601 2008 12. 4% 0. 8% (3. 1%) 5. 3% 71. 3% 13. 7% $308,514 $38,272 2009 8. 5% (1. 7%) 2. 4% (5. 0%) 66. 1% 9. 2% $323,645 $27,388 2010 9. 6% 11. 1% 11. 2% 6. 6% 63. 4% 10. 9% $351,105 $33,665 Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings DATAMONITOR Ph ilippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 33 LEADING COMPANIES Figure 16: Unilever: revenues & profitability Source: company filings DATAMONITORFigure 17: Unilever: assets & liabilities Source: company filings DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 34 DISTRIBUTION MARKET DISTRIBUTION Independent Retailers form the leading distribution channel in the Philippine soap market, accounting for a 52. 8% share of the total market's value. Specialist Retailers accounts for a further 14. 4% of the market. Table 16: Channel Independent Retailers Specialist Retailers Supermarkets / hypermarkets Others Total Source: Datamonitor Philippines soap market distribution: % share, by value, 2010(e) % Share 52. 8% 14. 4% 14. 4% 18. 5% 100% DATAMONITORFigure 18: Philippines soap market d istribution: % share, by value, 2010(e) Source: Datamonitor DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 35 MARKET FORECASTS MARKET FORECASTS Market value forecast In 2015, the Philippine soap market is forecast to have a value of $156. 8 million, an increase of 18. 6% since 2010. The compound annual growth rate of the market in the period 2010–15 is predicted to be 3. 5%. Table 17: Year 2010 2011 2012 2013 2014 2015 CAGR: 2010–15 Source: Datamonitor Philippines soap market value forecast: $ million, 2010–15 $ million 132. 2 137. 0 141. 9 146. 8 151. 7 156. PHP million 5,982. 8 6,199. 1 6,417. 5 6,639. 2 6,862. 1 7,092. 5 â‚ ¬ million 99. 6 103. 2 106. 9 110. 6 114. 3 118. 1 % Growth 3. 7% 3. 6% 3. 5% 3. 5% 3. 4% 3. 4% 3. 5% DATAMONITOR Figure 19: Philippines soap market value forecast: $ million, 2010–15 Source: Datamonitor DATAMONITOR Phil ippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 36 MARKET FORECASTS Market volume forecast In 2015, the Philippine soap market is forecast to have a volume of 103. 9 million units, an increase of 10. 9% since 2010. The compound annual growth rate of the market in the period 2010–15 is predicted to be 2. 1%.Table 18: Year 2010 2011 2012 2013 2014 2015 CAGR: 2010–15 Source: Datamonitor Philippines soap market volume forecast: million units, 2010–15 million units 93. 7 96. 0 98. 1 100. 1 102. 0 103. 9 % Growth 2. 4% 2. 5% 2. 2% 2. 0% 1. 9% 1. 9% 2. 1% DATAMONITOR Figure 20: Philippines soap market volume forecast: million units, 2010–15 Source: Datamonitor DATAMONITOR Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 37 MACROECONOMIC INDICATORS MACROECONOMIC INDICATORS Ta ble 19: Year 2006 2007 2008 2009 2010(e) Source: Datamonitor Philippines size of population (million), 2006–10 Population (million) 86. 0 87. 6 89. 3 91. 0 92. 7 % Growth 2. 0% 1. 9% 1. 9% 1. 9% 1. 9% DATAMONITOR Table 20: Year 2006 2007 2008 2009 2010(e)Philippines gdp (constant 2000 prices, $ billion), 2006–10 Constant 2000 Prices, $ billion 99. 2 106. 2 110. 2 111. 3 119. 2 % Growth 5. 4% 7. 1% 3. 7% 1. 1% 7. 1% DATAMONITOR Source: Datamonitor Table 21: Year 2006 2007 2008 2009 2010(e) Philippines gdp (current prices, $ billion), 2006–10 Current Prices, $ billion 117. 8 144. 3 170. 2 165. 2 183. 6 % Growth 20. 2% 22. 5% 18. 0% (3. 0%) 11. 2% DATAMONITOR Source: Datamonitor Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 38 MACROECONOMIC INDICATORS Table 22: Year 2006 2007 2008 2009 2010(e) Philippines inflation, 2006–10 Inflation Rate (%) 6. % 2. 8% 9. 3% 3. 2% 3. 8% DATAMONITOR Source: Datamonitor Table 23: Year 2006 2007 2008 2009 2010(e) Philippines consumer price index (absolute), 2006–10 Consumer Price Index (2000 = 100) 137. 9 141. 8 155. 0 159. 9 166. 0 DATAMONITOR Source: Datamonitor Table 24: Year 2006 2007 2008 2009 2010 Philippines exchange rate, 2006–10 Exchange rate ($/PHP) 51. 4087 46. 2140 44. 5728 47. 7318 45. 2396 Exchange rate (â‚ ¬/PHP) 64. 5003 63. 2358 65. 2211 66. 5482 60. 0503 DATAMONITOR Source: Datamonitor Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 39 APPENDIX APPENDIX MethodologyDatamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry exp erts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country.The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: National/Governmental statistics International data (official international sources) National and International trade associations B roker and analyst reports Company Annual Reports Business information libraries and databases Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and emand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 40 APPENDIX Industry associations International Association for Soaps, Detergents and Maintenance Products Square Marie-Louise 49, B-1000 Brussels, Belgium Tel. : 32 2 230 8371 Fax: 32 2 230 8288 www. aise-net. org Related Datamonitor research Industry profiles Soap in Malaysia Soap in Thailand Philippines – Soap à ‚ © Datamonitor. This profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 41 APPENDIX DisclaimerAll Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability hatever for actions taken based on any information that may subsequently prove to be incorrect. Philippines – Soap  © Datamonitor. This profile is a licensed product and is not to be photocop ied 0115 – 0208 – 2010 Page 42 ABOUT DATAMONITOR ABOUT DATAMONITOR The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Combining our industry knowledge and experience, we assist over 6,000 of the world’s leading companies in making better strategic and operational decisions.Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment. Premium Reports Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitor s and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas. Summary Reports Our series of company, industry and country profiles complements our premium products, providing top-level information on 30,000 companies, 3,000 industries and 100 countries.While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need – including predictions and forecasts. Datamonitor consulting We hope that the data and analysis in this profile will help you make informed and imaginative business decisions. If you have further requirements, Datamonitor’s consulting team may be able to help you. For more information about Datamonitor’s consulting capabilities, please contact us directly at [email  protected] com. Philippines – Soap  © Datamonitor. Thi s profile is a licensed product and is not to be photocopied 0115 – 0208 – 2010 Page 43

Social Media Essay Example | Topics and Well Written Essays - 250 words - 1

Social Media - Essay Example Social media in businessBusiness executives use social media in advertising, networking, and marketing via blogs. Company and products adverts on social sites to target customers who frequently use the social sites. Customers communicate with the company via these social sites in a less formal way. Users can get good business deals and ideas from their friends who are on the social networks as they interact.Many political blogs responding to mainstream news released via radios or TVs are now available in the social media. They are also using the social media to campaign for elections at the grassroots or national level. The uprising and ousting of political leaders in the northern-Africa Islamic countries were made possible by social site.Social media used in educationSocial media subscriptions can provide homework assignments, assigning reading materials thus enhancing e-learning and up-to-date information. Social media has enabled students to carry out projects beyond individual ca pabilities together.Social media in entertainmentiPhones and blackberries equally contain music and games for entertainment. Some social sites such as MySpace are entertainment oriented. TVs are also playing different genres of music for entertainment.Social media for charitable activitiesDonations to the Haiti earthquake via the social media were overwhelming. Social media is also used in delivering source news. Social media has specifically provided news to millions of people.

Popular Music, Social Practice and Cultural Politics Essay

Popular Music, Social Practice and Cultural Politics - Essay Example In fact the general feeling was that it was a passing phase. But this was not to be because Rap took a very serious turn in the late 1980’s when the â€Å"bubble gum† kind of rap evolved into the more serious kind of â€Å"Gangsta Rap†. From very humble beginnings, Gangsta rap made a huge name for itself and flooded the mainstream markets that generated not only huge profits but widespread popularity to the rapping artists as well as the labels that sold them. Popular rappers started writing harsh and edgy lyrics that celebrated street warfare, the use of drugs and also glorified promiscuity. They experienced place-based identity with LA deeming itself to be â€Å"fresh territory† with a high â€Å"novelty value and stories of gang conflict and police confrontations. The identity of the rapper was his hood which he used most of the time. Eithne Quinn, takes a long hard look at the genre of Gangsta rap and gives us a rich and insightful analysis in relation to contemporary culture. Quinn finds contradictory statements as she explores the ideologies, the intricacies and the culture of the Black working class. Nuthin But a "G" Thang shows how Gansta rap is not simply a pop culture fad but instead embodies profound shifts in American culture and everyday life." (S. Craig Watkins, author of Representing: Hip Hop Culture and the Production of Black Cinema) Quinn enumerates that the social group involved in Gangsta Rap were the people who were considered to be in crisis and these included the black youth from poor homes who were all out to make money. On the other hand, a major part of the society in general and other public figures and proponents of respectable â€Å"family values† did not take well to the fast life-styles and blatantly charged lyrics which incited a lot of distaste and anger in them. Yet nothing much could be done about it and hence for the last thirty years,

Fall 2011 Emily Dickenson Essay Example | Topics and Well Written Essays - 1000 words

Fall 2011 Emily Dickenson - Essay Example Staring with the formal characteristics of writing, there are three identifiable techniques used within this poem. The first characteristic Dickenson uses in her poem is the idea of imagery. As she describes death, or impending death, Dickenson describes the concept by having readers imagine cold and bleak winter afternoons that oppress everything encompassed in the day. It is through this grim picture of a frigid winter’s day that the reader can start to appreciate the lifeless nature of death. By requiring the reader to visually imagine the places and experiences she is describing, Dickenson is able to connect a reader of her poem to their emotions of the events she is describing. Upon analyzing the poem, a person can equate the emotions they feel about a dreary and bland winter day to the unavoidable future of facing death. Along with visual images, the second language characteristic Dickenson utilized in â€Å"There’s a certain Slant of light† is the concept of metaphor. Upon describing despair and depression, Dickenson used a metaphor of ringing church bells that echo in the empty air around them to relate the stark loneliness of depression to readers. By connecting these two items together, Dickenson is also taking the physical object of a church bell, which has both positive and negative connotations, and connecting it specifically with a negative emotion in this use of metaphor within her poem. While the first two examples demonstrate the visual images and metaphors Dickenson wanted her readers to see in â€Å"There’s a certain Slant of light,† the poem also contains the language characteristic of rhyme. Dickenson uses the form of inexact rhyme, where the words at the end of line have similar sounds but are not required to have matching vowel and consonant sounds like exact rhyme. In using this type of language characteristic, Dickenson is adding a degree of ease to the poem for readers. By reading the poem as it float s along, the dark subject matter of â€Å"There’s a certain Slant of light,† might not even rise to the reader’s awareness upon first review of the poem. Upon establishing three language characteristics that exist within Dickenson’s poem, I am now able to speak of my interpretation of this written work. After reading â€Å"There’s a certain Slant of light,† I found that this poem represented a feeling of despair and depression from Dickenson. Whether this was connected to a bleak and dreary winter day or just from depression in general, this idea translated into the incredible loneliness that comes from realizing you feel totally alone. Each time I read the poem, I paid attention to the emotions I felt upon voicing Dickenson’s words. While the majority of the emotions evoked by this piece were feelings of loneliness and trepidation, the one thing that truly struck me was that by setting this poem to the beat of an inexact rhyme, the l ight and airy nature of how one speaks the poem seems to almost contradict the message Dickenson is portraying. Perhaps in this way, Dickenson was attempting to lead to the reader to believe that even in the most dreary and bleak of winter days, there is always cause to hope for spring. Question 2 As a major genre in literature, the concept of postmodernism is defined as literature from the post World War II

Medical mangement of chronic renal failure Research Paper

Medical mangement of chronic renal failure - Research Paper Example After the body absorbs what is needed from food for self-repairs and energy, the remainder is waste that is sent to the blood. However, these functions of the kidney are hindered by attacks on nephrons resulting in the loss of their filtering ability. High blood pressure and diabetes are responsible for renal failure, thereby resulting in slow and silent destruction of the nephrons. Kidney failure can be chronic, acute or end stage. In this paper, the discussion focuses on the medical management of chronic renal failure. This discussion defines chronic renal failure, medical tests to detect kidney failure, and management of chronic renal failure. Detection of kidney disease People may exhibit signs and symptoms of chronic renal failure. However, some have no symptoms and the doctor detects kidney condition through regular urine and blood tests. The three key simple tests recommended by the National Kidney Foundation are blood pressure measurement, spot check for albumin or protein in urine, and Glomerular filtration rate or GFR based on serum creatinine measurement (Alters, 2000). Blood pressure measurement involves the use of a dedicated cuff to obtain systolic and diastolic blood pressure. Microalbuminuria condition results from the failure of kidneys to separate albumin from blood protein. Proteinuria is the resultant condition of increased blood protein and albumin. Dipstick color indicates the presence or absence of proteinuria. Kidney biopsy and kidney imaging are also viable ways of detecting kidney failure (SIGN, 2008). Management of Chronic Kidney disease or CKD CKD is kidney failure that occurs over a lengthy duration. This duration could be months or years. However, the major causes of renal failure are diabetes and high blood pressure that are poorly managed and chronic glomerulonephritis. Other causes of CKD that are less pronounced include kidney stones, reflux nephropathy, prostrate disease and polycystic kidney disease. The most unfortunate thin g is that there is no cure for CKD. However, in its early stages kidney failure can be managed allowing the patients to live longer. This requires the observation of several steps that must ensure that heart attacks and stroke risks are minimized since such patients are vulnerable. According to Schoolwerth, McClellan and Gehr (2006), Chronic Kidney disease treatment is intended at preventing or slowing additional damage to patient’s kidneys. Proper treatment requires that underlying conditions like diabetes or high blood pressure that cause kidney disease be identified and managed. The management of such diseases prevents situations that cause kidney damage or worsen it (SIGN, 2008). For most patients, classification falls within mild and moderate categories and hospital-based management is not necessary. For most of the patients in these categories, the most significant aspect is controlling the cardiovascular influence on patient’s renal disease. This management is m ore significant than the risk of developing end stage renal failure. Daugirdas (2011) reveals that this classification guidance is directed according to severity of the damage. The stages of chronic kidney disease are grouped in five categories. The first stage is slight kidney damage characterized by normal or increased filtration and GFR more than 90. The second stage is mild kidney function characterized by 60 to 89 GFR. Stage three

Distinguish between the return on investment and the return on Essay

Distinguish between the return on investment and the return on capital. Show the respective relevance of each to investment decisions - Essay Example ffect of the aggregate demand curve is the same as the demand curve, it shows the amount that the government and businesses are willing to spend on good (Perelman, 2007). Keynes postulates that the capital investment in equipment, plant and machinery will increase the production of goods in an economy. He further, says that investment consists of spending on stocks and finished goods. An increase in interest rate results to a decrease in investment hence a consequent decrease in the total demand. This happens on the ground that the interest rate and investment have an inverse relationship. The increase in interest rate increases the cost of capital hence decrease in demand total. However, a reduction in interest rate will lower the cost of the capital hence increase in investment and a consequent increase in aggregate investment. Keynes postulates that aggregate demand has a number of components. The demand function is Y=C(Y-T)+I (r) +G+NX (e) where I is income, I is consumption being a function of disposable income, I is investment being a function of interest rate, G is government expenditure and NX is net exports (exports minus imports). Keynes further ascertained that investment cannot, therefore, be a sole determinant of the aggregate demand. This means that a change in investment leads to a less proportionate change in the aggregate demand. A rising flow of investment increases the money supply in the economy. The government using its monetary policy, it employs the increase in interest rates to decrease the nominal supply in the economy as it increases the cost of capital (V). Additionally, the increase in the flow of investment increases the money supply in the economy leading to a shift of the money supply upwards and leftwards. This would consequently lead to an increase in prices and the real output (oil, petrol and

CIPR Critical Reasoning Test Essay Example | Topics and Well Written Essays - 2000 words

CIPR Critical Reasoning Test - Essay Example Both of these terms are often used interchangeably although they are very different in the scope and extent to which they apply. The difference between these two terms appears to be so small, such that many people have a problem making the distinction. Publicity can be equated to a single arrow existing in a quiver, which is public relations. This means that focus of public relations in its practice is very small (Adams, 1962, p, 896), it does not however underestimate the importance of the practice in the wider public relations practice. Alternatively, public relations refer to the greater level of establishment of an over-arching approach, for enhancing the marketing or communications goal of an organisation or institution. Public relation is a term that encompasses many other small concepts that aim at enhancing a particular objective. Organizations rely on public relations approaches in order to create awareness to the public about their practices as well as other important issues that are aimed at achieving set objectives in the organisation. The term public relation is sometimes associated with reputation management, which refers to practices that are done in the interest of establishing and sustaining the reputation of an organisation. It is important that an organisation creates a better picture or image of itself so that it appeals to the public (Grunig, 1992, p, 34). Organizations that have proper public images have professional personnel who are able to use public relations tools in an appropriate manner to achieve set objectives. Professionals undertaking public relation functions in organisation perform four important functions; they are involved in planning, developing implementing and evaluating different information and communication approaches which aim at enhancing an understanding and a favourable perspective about the organization. In addition, they are also important in creating a positive

The consuming behaviours of university students purchasing smartphones Dissertation

The consuming behaviours of university students purchasing smartphones - Dissertation Example This paper investigates into the consuming behaviour of the university students in the United Kingdom with regard to their purchase of smart phones. Three most significant factors have been identified through this research work that affect smart phone purchasing behaviour of this customer base. It has been product features (of smart phones) affect their purchasing decision the most. These consumers also attach huge importance to the brand name of the product that they are going to purchase. Branded smart phones are preferred by these customers since high brand value serve as an identification of superiority of the product as well as a symbol of status in the society and peer group. Price of the product is considered by the customers while they purchase a new smart phone, but, research shows that they are often willing to spend a large sum of money in order to obtain a smart phone of very high brand name. Table of Contents 4 Introduction 4 Literature review 6 Methodology 17 Research p roblem 17 Method of analysis 28 Quantitative Method 28 Qualitative method 29 Method of data collection 31 Sampling 34 Questionnaire survey 35 Ethical considerations 38 Limitations of the Research Methodology 39 Data analysis and interpretation of findings 40 Conclusion and recommendations 52 Reference List 54 Appendices 60 Introduction Smart phones are becoming an increasingly important device that is used by the average customer in the United Kingdom. According to research, the number of smart phone users in the UK is growing continuously and rapidly. Purchase and use of smart phones depends on a number of factors, such as, the tastes and preference of the individual customer, the income level of the customer, the previous usage history of mobile phones, age and gender of the customer as well as the education level of the individual. While the demographic features of the customer base affects the smart phone purchasing behaviour of the customer, attributes of the product also take an important position in the purchasing decision made by the customers. These attributes are the product features, looks and appearance of the phone, price of the item, relative price of the phone compared to the other smart phones offered by the competing firms, awareness among the peer group about the product or its brand, customer’s knowledge about the brand and customer loyalty toward the brand. It has been through recent research works that smart phone usage among adults decreases with age. Also, over the last decade, use of smart phone has increased among the female population by a considerably high extent. Since 2010, number of female customers of smart phone has increased significantly from the number in the beginning of the twentieth century. Among the student generation, there is almost equal number of female smart phone owners as the male smart phone owners (Solomon, et al., 2006). At present the mobile phone market has expanded geographically as well as economical ly. Smart phone usage has become a modern trend of the middle class population across all countries and demand for such device is rising constantly. Smart phones can perform a vast range of functions due to which this device has moved out of its identity of a mere mobile phone and has become the ‘personal assistance device’ (pda) for the users. Several smart phone manufacturing companies are rapidly gaining popularity through the products offered by them. Several companies operate internationally,

Interpreting Popular Music Essay Example | Topics and Well Written Essays - 2000 words

Interpreting Popular Music - Essay Example Lastly, of every significant structure, music has maybe the most unpretentious and complex connection to verbal dialect and the sorts of referentiality in which it is (customarily) related. The state of it being rich, makes music a vital source-case for a basic semiotics. Nevertheless, it is likewise this richness, which has regularly separated musical semiotics into contending camps, each one deficient. I ought to pause a minute, then, to show the general blueprints of the new amalgamation which, I believe, can at long last start to address this many-sided quality. There are three key improvements in musical semiotics in the 1990s. The principal was a basic swing in the field far from formalism for its own particular purpose, towards a recharged enthusiasm for hermeneutics (but of a profoundly formalized sort). The hermeneutic turn has given room for musical semiotics to say significantly more in regards to the particular connections between cultural value and formal detail. The second advancement was the development of an intelligible and effective hypothesis of musical gesture a vastly improved picture of the associations between musics symbolic and corporeal aspects, and the inconspicuous interplay in the middle of literal and progressively abstract signs of encapsulation in musical practice. This advancement has permitted musical semiotics to be more particular about the instruments fundamental musical connotation at all levels of sweeping statement. The third advancement has been the rise of a semiotic hypothesis of musical narrative and musical personae. However, the main aim of this paper is to give a semiotic analysis of aâ€Å"Not a second† a rock song done by the Beatles back in the years. There has been plenty of earnest rock writing -- Heylin 1992 Eisen 1969, and Kureishi 1995- are excellent anthologies. Nevertheless, so far it has largely concentrated on disciplines like music’s sociology, with their theories and concepts rooted in

Organizational Buyer Behavior and Buyer-Seller Relationships Essay Example for Free

Organizational Buyer Behavior and Buyer-Seller Relationships Essay Business to business marketing also known as Industrial marketing is the marketing of goods services to organizations including commercial enterprises, government and other profit non-profit institutions for use in the goods services they in turn produce for resale to other customers or to facilitate the operation of their enterprise (Reeder, Brierty, 2002). Business to business market is characterized by few customers who buy in very large quantities and are geographically concentrated. The customers are professional and rational in their purchase approach. The nature of demand is derived demand, which is usually customized. The channels of distribution are shorter and there is more emphasis on personal face-to-face communication. In this era of globalization the business environment is characterized by intense competition. To sustain and grow in such a competitive economic environment, business organizations are under tremendous pressure to manufacture a product or provide a service that is of optimum quality, is customized to individual customer requirements and is delivered on time at minimum possible price. The role of the suppliers is crucial in helping the business organizations to achieve this objective. To succeed and grow in such business to business markets business marketers need to understand the Business Buyer Behavior and evolve close, enduring and long-term relationships. Business Buyer Behavior Understanding the dynamics of business buying behavior including the organizational buying process, the types of buying situations, forces influencing the organization buyer behavior, the composition of the buying center and the motives and the roles played by each member of the buying center is crucial for business marketers to identify profitable market segments, locate the various buying influences within these segments and reaching these buyers efficiently and effectively with product or service offerings that satisfy their needs. The Organizational Buying Process The organizational buying behavior is a process rather than an isolated program. It involves comprehensive phases or stages. The process begins with the recognition of a need for a product or service by someone in the company. Broad parameters for the desired product/service are then worked out. Detailed specifications and description for the desired product or service are developed. Once the company has defined the product /service it needs then the search for potential suppliers who can meet the needs begins, alternative suppliers are identified, asked to submit their proposals and the proposals analyzed. The short-listed suppliers are invited for negotiations and the final suppliers are selected. The order is then placed with the selected suppliers on the agreed terms. Finally the performance of the firms supplying the required products/ services is reviewed periodically. The buying process stage of the potential buyer for the seller’s product or service will have a major implication on the marketing approach to be adopted by the seller. Types of Buying Situations There are basically three major types of buying situations, namely the straight rebuy, modified rebuy and new-task buy. In a straight rebuy situation the buyer reorders a product or service without any modifications on a routine basis through the purchase department. In a modified rebuy situation the buyer may wish a modification in product/service specifications, prices, terms of supply etc. This situation usually involves more number of participants in the buying decision process. In a new task buying situation the company is buying a product or service for the first time. In such a situation the organization buying process is more complex and involves many more number of participants from different departments in the organization. The buying company also needs to decide on the product/service specifications, prices, delivery terms, order quantities, service terms etc. Forces Influencing Business Buying Behavior The organization buying behavior is influenced by environmental forces like changes in the domestic and global economy and changes in the technologies. The rapid strides made in information technology especially Internet technology has had a major influence in the way businesses buy. For example most of the small and large business organizations buy computer systems from Dell through its well developed website www. ell. com. Organization buying behavior is also influenced by the organizational forces like centralization and decentralization of purchase and strategic role and priorities of purchase prevalent in the given organization. The group forces influencing behavior include the composition, motives and the roles played by each member of the buying center. Buying Center It is the decision-making uni t of a buying organization and comprises of all members of the organization who are involved in the buying decision process. The members of the buying center will change depending on the product/service being purchased and the buying situation in which it is being purchased. The buying center members may play any one or a combination of the five roles namely, users, influencers, buyers, deciders and gatekeepers. Users are the members who will actually use the product being offered. Influencers are members who influence the purchase. Buyers are members who have the formal authority to make the purchase. Deciders are members who have formal or informal power to select/approve the final suppliers. Gatekeepers are members who control the flow of information from the seller to other members of the buying center. The buying motives/objectives of each member of the buying center through which the members evaluate potential suppliers may differ. The motives may include task oriented objectives such as price, quality, service and Return on Investment and non-task oriented objectives such as recognition, promotion, increments and job security. Companies involved in business to business marketing need to clearly identify the buying situation, the stage or the phase in the buying decision making process for the product being offered, the various forces influencing the buying organizations behavior, the composition of the buying center, the role played by each member of the buying center and the criteria on which they evaluate the suppliers for each individual customer. Based on such an understanding they should evolve suitable marketing strategies for success. For example Unilever the British FMCG major may need new high-speed packaging equipment for its innovation in detergent ‘small mighty’. Companies in the business of packaging equipment need to understand that it is a new task buy situation for Unilever. And the company may be in the need identification stage of the buying process. They need to have closer relationship with the members from different functional areas like operations, engineering, design, finance and purchase who may comprise the buying center, understand the motives of purchase and the role played by each member. This is crucial because each of this buyer behavior characteristic will have an implication on the buying decision process at Unilever. This will help the supplier to evolve suitable marketing strategies to be the favoured supplier of Unilever. Relationship emphasis in Business to Business Marketing In the highly competitive environment that is prevalent today, suppliers have evolved into business partners. There is a major emphasis on close and long-term relationships in the business to business markets. To maintain the relationships, business markets must develop an intimate knowledge of the customers and add value to it. Relationship marketing centers on all marketing activities directed towards establishing, developing and maintaining successful exchanges with customers (Morgan, Hunt, 1994). A strong relationship between the buyer and the seller is a win-win situation for both. The seller will have a competitive advantage over his competition and the buyer will have effective business solutions to his problem. The relationships between the buyer and the seller in the business to business setup are positioned on a spectrum with transactional exchanges on one end and collaborative exchanges at the other extreme with value-added exchanges in the middle. Transactional Exchanges focus on timely exchange of a product/service for a competitive price. Economy and necessity are the main motivational factors of such exchanges with little interest on the part of the buyer or the seller to extend the relationship. Such types of exchanges may be preferred by the buying organization when the purchase decision is not complex, the purchase is considered to be less significant to the achievement of its objectives, many suppliers are available and the supply market is stable. Here the business marketer need not make any specialized investment in building relationships. For example the supply of office stationery and cleaning services may call for a transactional relationship. Value added exchanges focus on complete understanding of the present and future needs of the customer and meeting those needs better than the competitor by customizing the firm’s offerings to the needs of individual customers. For example Intel Corporation, a leading player in the semiconductor industry has understood the changing computer server needs of it corporate clients and has developed and introduced a new chip that lowers electricity consumption to a very great extent. This has drastically reduced the huge electricity bills of its customers like Google Corporation that maintain thousands of servers world wide (Edwards, 2006) Collaborative Exchanges focus on building a strong social, economic, service and technical ties over a long period of time for mutual benefit through reduced costs and increased value. Such exchanges are very crucial when the market is very dynamic, the complexity of purchase is very high and the product/service being purchased is very crucial for the performance of the end product of the buying organization. In such situations the switching costs involved in changing a supplier are also very high for the buying organization. For example Asin is the sole supplier to the Japanese car manufacturing major Toyota Motors for â€Å"p-valve†, a critical brake part used in all Toyota vehicles worldwide. Aisin works in very close collaboration with Toyota Motors and is highly involved in the product development process at Toyota Motors to keep pace with the innovations being made in the Toyota vehicles and meet the JIT production requirements of Toyota (Liker, 2004). Business Marketers have some flexibility in deciding where to participate along the relationship continuum. It basically depends on the characteristics of the market, the type and price of product/service being offered and the significance of product/service being offered to the buying organization. However rival companies are continuously working towards taking away the best accounts and so also the requirements, expectations and the preferences of the individual customers keeps changing continuously. To meet these challenges business marketers must develop mutually beneficial relationships with individual customers by developing a deep understanding of their needs. Information should be openly shared to benefit both the buyer and the seller. The systems, procedures, and routines of the buyer and seller should be connected to facilitate operations. There should be very good cooperation between the buyer and seller and both should treat the buying situations as joint responsibilities. Both the buyer and seller should invest in processes and procedures that are necessary to meet the specific needs of the exchange partners. Such mutually beneficial relationships between the buyer and the seller will result in better service to the business customer as the seller will be able to provide customized product/service solutions that precisely meet the individual customer needs. Conclusion Business to business markets are growing in volume as compared to consumer markets. The characteristics of the Business to business markets call for closer buyer seller relationships. Companies operating in the Business to business markets should clearly study the organizational buyer behavior with respect to the product or service they offer. They should decide on the type of relationship, ranging from transactional exchange to collaborative exchange, which they should adopt with each customer to gain competitive advantage in the intensively competitive business environment.

Hurricane Katrina Disaster Response Essay Example for Free

Hurricane Katrina Disaster Response Essay Bureaucratic/hierarchical model is a kind of organizational management wherein all the members of the organization contribute for the achievement of its purpose which is to give the best possible performance. It has rules and regulation which the members followed. and the personnel took orders from the top. The advantages of bureaucratic/hierarchical model include the following: its power and technical system is implemented by means of its rules and regulations; these rules are well-defined and managed fairly which are the reasons why members and clients agree and measure up to its authority. It has rights and benefits or privileges which serve as a protection to its members as well as its clients, regardless of their status. Bureaucratic/hierarchical model has the capacity to work efficiently and effortlessly, giving power to the people to operate in a synchronized or harmonized way. However, bureaucratic/hierarchical model has its disadvantages as well, and these are the following: agreement or conformity is not always appreciated due to the fact that this may hinder or impede the capacity to attend and respond to events that has not been encoded into their system of rules and regulations; it has the tendency to build a conspiracy or plot among its members; also its administrator has the tendency to become more occupied in maintaining the official form that they lose sight of their original main purpose. Meanwhile, the network model is a kind of organizational management composed of independent people and group that operate in many levels, has links across boundaries, and worked together for a common purpose. It has multiple leaders, and its members meet occasionally. The main purpose of the network model is to provide quality services to its clients through high degrees of informal communications via worldwide web. Because of this purpose, numerous advantages can be derived from networking. First of all, it provides a faster proliferation of information and other related announcement between those at sharp-end and those who support them. It enables members to render high quality services through the various skills and capacity of their teams wherever and whenever the need arises. Technical wise, network can still operate even in cases of natural disaster thereby lessening disruption as it can adjust accordingly. However, as much as this model has numerous advantages, it also has its disadvantages. Among them are: the lack of hierarchy does not always ensure quality services; the fact that since the people involved in this model has less chance of meeting, in cases of any trouble or problem, it takes longer for them to coordinate; and although they have high tech equipment plus the capabilities to operate these equipments, it does not guarantee of reliability in instances of electricity crisis and disasters. Wise (2006) proposed implementing an â€Å"adaptive management† approach for disasters to solve the solution to the above mentioned management model. Adaptive management is a kind of management which makes use of the combination of science and management, and its approach is based on the new information they have acquired. Their approach of management starts with having meeting with members and personnel to discuss the problem and discuss their plans. They will then create a group who will monitor and study the facts and figures, as well as inform their leader about the results of their study. This not only helped solve the problems but at the same time provide an opportunity for organizational learning to all the people involved. The process in adaptive management model includes the following: they first identify the worries and reservations regarding the matter at hand; after which the leader, together with his personnel launched ways or means to test the proposition and suggestion regarding the matter or problem. The last step they take is; after thorough study and consultation with all the personnel concerned, they will then proceed to change their system for a new one which they believe will accommodate for better handling and solving of the matter or problem at hand. Given the Hurricane Katrina scenario, if the adaptive management approach is applied from day 1 when Hurricane Katrina is still in Category 1, the authorities assigned to the disaster division of the government would have lost no time in conducting an emergency meeting to discuss contingency plan with regards to the approaching typhoon. They would have studied and discussed all the angles and possibilities in case the typhoon gained strength. After that, the authorities would improvise plans on safety measures for the public, and formed groups who will monitor the status of the typhoon, the course of its travel 24/7, and update the head of the department from time to time. When one levee collapsed, the authorities would have been able to prevent other levees to collapse because the adaptive management model is more suitable to utilize in case of emergencies like what happened at the height of Hurricane Katrina. As a conclusion, this student recommends the use or application of adaptive management approach for the Hurricane Katrina. For one, this approach is more accurate and reliable since it is more updated due to the continuous training of the manager and personnel of organization with this approach. They possess high technology equipment that proves to be more accurate, and their personnel have the skills and capabilities to handle these equipments that will surely save time in responding to emergencies and disasters. All these aspects will surely be more proficient in handling emergency situations as they lead to better and fast coordination, that can save life better and faster than when bureaucratic/hierarchical model and network model is employed. Bibliography Brown, T. L. and Potoski, M. (2003). Management capacity in municipal and county governments. Public Administration Review. 63(2). Business system-the bureaucratic model. (2008). Business Open Learning Archive. Retrieved March 18, 2009, from The Business Open Learning Archive database. Wise, C. R. (2002). Organizing for Homeland Security. Public Administration Review 62, 131 – 144.