Menu

Barbara Lynch Gruppo An Entrepreneurial Journey Online Case Analysis

Home >> Accounting >> Barbara Lynch Gruppo An Entrepreneurial Journey

Barbara Lynch Gruppo An Entrepreneurial Journey Case Study Solution & Analysis


Introduction

Barbara Lynch Gruppo An Entrepreneurial Journey is presently one of the greatest food chains worldwide. It was established by Henri Barbara Lynch Gruppo An Entrepreneurial Journey in 1866, a German Pharmacist who first released "Farine Lactee"; a mix of flour and milk to feed infants and decrease mortality rate.

Barbara Lynch Gruppo An Entrepreneurial Journey is now a transnational company. Unlike other international business, it has senior executives from various countries and tries to make choices thinking about the whole world. Barbara Lynch Gruppo An Entrepreneurial Journey Case Study Help currently has more than 500 factories worldwide and a network spread throughout 86 nations.

Function

The purpose of Barbara Lynch Gruppo An Entrepreneurial Journey Corporation is to enhance the quality of life of individuals by playing its part and supplying healthy food. While making sure that the business is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

Nestlé's vision is to offer its customers with food that is healthy, high in quality and safe to consume. It wishes to be innovative and at the same time understand the requirements and requirements of its clients. Its vision is to grow quick and supply items that would satisfy the requirements of each age. Barbara Lynch Gruppo An Entrepreneurial Journey imagines to develop a well-trained workforce which would assist the business to grow.

Mission.

Nestlé's objective is that as presently, it is the leading business in the food market, it believes in 'Excellent Food, Good Life". Its mission is to offer its consumers with a range of choices that are healthy and best in taste. It is focused on offering the very best food to its consumers throughout the day and night.

Products.

Barbara Lynch Gruppo An Entrepreneurial Journey Case Study Help has a large range of items that it offers to its consumers. Its items include food for infants, cereals, dairy items, treats, chocolates, food for pet and bottled water. It has around 4 hundred and fifty (450) factories worldwide and around 328,000 workers. In 2011, Barbara Lynch Gruppo An Entrepreneurial Journey was noted as the most rewarding company.

Goals and goals.

• Keeping in mind the vision and objective of the corporation, the company has actually put down its goals and objectives. These objectives and objectives are listed below.
• One goal of the business is to reach zero garbage dump status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It motivates its staff members to take the most out of the spin-offs. (Barbara Lynch Gruppo An Entrepreneurial Journey, aboutus, 2017).
• Another objective of Barbara Lynch Gruppo An Entrepreneurial Journey is to lose minimum food during production. Most often, the food produced is lost even before it reaches the customers.
• Another thing that Barbara Lynch Gruppo An Entrepreneurial Journey is working on is to enhance its packaging in such a method that it would assist it to minimize those issues and would likewise ensure the shipment of high quality of its items to its consumers.
• Meet global requirements of the environment.
• Build a relationship based on trust with its consumers, service partners, workers, and government.

Important Problems.

Recently, Barbara Lynch Gruppo An Entrepreneurial Journey Business is focusing more towards the strategy of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW strategy. The target of the company is not achieved as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibit H. There is a need to focus more on the sales then the development technology. Otherwise, it might result in the declined income rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals.

The existing Barbara Lynch Gruppo An Entrepreneurial Journey technique is based on the principle of Nutritious, Health and Health (NHW). This method deals with the idea to bringing change in the customer choices about food and making the food things much healthier concerning about the health problems.

The vision of this method is based upon the secret approach i.e. 60/40+ which just means that the products will have a rating of 60% on the basis of taste and 40% is based on its nutritional worth. The products will be made with additional dietary value in contrast to all other products in market gaining it a plus on its nutritional material.

This strategy was embraced to bring more healthy plus tasty foods and beverages in market than ever. In competition with other companies, with an intention of keeping its trust over customers as Barbara Lynch Gruppo An Entrepreneurial Journey Business has actually gained more trusted by clients.

Microenvironment Analysis (PESTEL Analysis).

The analysis used to measure the position of company in the market is done by using PESTLE analysis, provided in Exhibition A. Barbara Lynch Gruppo An Entrepreneurial Journey works under the rules and guidelines directed by government and food authority. The business is more focused on its products and services to make sure about the product quality and security.

Political.

The political impact on the company is considerably influenced by the public law and policies. The company has to satisfy its requirements provided by federal government otherwise it has to pay fine. Barbara Lynch Gruppo An Entrepreneurial Journey is significantly supported by Federal government to fulfill all the requirements of standards like acts of health and wellness. In efforts to make good food, Barbara Lynch Gruppo An Entrepreneurial Journey is altering the standards of food and drink production. This might cause the infraction of governmental guidelines and guidelines.

Economic.

Initiation of the business where the capital income of each specific matters for the increased net sale as this varies country-to-country. The economy of the Barbara Lynch Gruppo An Entrepreneurial Journey Company in U.S. is growing year by year with variable products launch especially focusing on the dietary food for infants.

Social.

The social environment keeps on changing with regard to time like the attitude of the consumer as well as their way of lives. Any service or product of any company can not succeed up until the business is not concerned about the living system of the customer. Barbara Lynch Gruppo An Entrepreneurial Journey is taking measures to meet its objectives as the world remains in search of delicious and healthy food.

Technological.

In the advancement of business, strategic measures are rather mandatory. Barbara Lynch Gruppo An Entrepreneurial Journey is one of the top popular multinational firm and by time it buys various departments to take its products to brand-new level. Barbara Lynch Gruppo An Entrepreneurial Journey is spending more on its R&D to make its items much healthier and healthy offering consumers with health benefits.

Legal.

There is no such impact of legal elements of Barbara Lynch Gruppo An Entrepreneurial Journey as it is more concerned over its policies and laws.

Environmental

Barbara Lynch Gruppo An Entrepreneurial Journey, in regards to ecological impact is dedicated to operate in eco-friendly environment with conservation of the natural resources and energy. As due to the production of larger variety of products there might be a risk if the resources used are recyclable or not.

Competitive Forces Analysis (Porter's Five Forces Model).

Barbara Lynch Gruppo An Entrepreneurial Journey Case Study Help has actually acquired a number of companies that assisted it in diversification and growth of its product's profile. This is the thorough explanation of the Porter's model of 5 forces of Barbara Lynch Gruppo An Entrepreneurial Journey Business, given up Exhibition B.

Competitiveness.

There is severe competition in the industry of food and beverages. Barbara Lynch Gruppo An Entrepreneurial Journey is one of the top company in this competitive market with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Barbara Lynch Gruppo An Entrepreneurial Journey is running well in this race for last 150 years. Each business has a definite share of market. This competition is not simply limited to the cost of the product but also for variation, quality and innovation. Every industry is making every effort hard for the upkeep of their market share. The competition of other business with Barbara Lynch Gruppo An Entrepreneurial Journey is quite high.

Hazard of New Entrants.

A variety of barriers are there for the brand-new entrants to take place in the customer food market. Just a couple of entrants succeed in this industry as there is a requirement to understand the customer need which needs time while recent rivals are aware and has actually progressed with the customer commitment over their products with time. There is low risk of brand-new entrants to Barbara Lynch Gruppo An Entrepreneurial Journey as it has quite large network of distribution worldwide dominating with well-reputed image.

Bargaining Power of Suppliers.

In the food and drink market, Barbara Lynch Gruppo An Entrepreneurial Journey Case Study Help owes the biggest share of market needing higher number of supply chains. In response, Barbara Lynch Gruppo An Entrepreneurial Journey has likewise been concerned for its suppliers as it thinks in long-lasting relations.

Bargaining Power of Purchasers.

Thus, Barbara Lynch Gruppo An Entrepreneurial Journey makes sure to keep its clients pleased. This has led Barbara Lynch Gruppo An Entrepreneurial Journey to be one of the faithful business in eyes of its buyers.

Risk of Replacements.

There has been an excellent danger of alternatives as there are replacements of a few of the Nestlé's items such as boiled water and pasteurized milk. There has actually likewise been a claim that some of its items are not safe to use leading to the decreased sale. Hence, Barbara Lynch Gruppo An Entrepreneurial Journey started highlighting the health advantages of its items to cope up with the alternatives.

Rival Analysis.

Barbara Lynch Gruppo An Entrepreneurial Journey Case Study Solution covers a number of the popular customer brands like Package Kat and Nescafe and so on. About 29 brands amongst all of its brand names, each brand earned an earnings of about $1billion in 2010. Its major part of sale remains in The United States and Canada making up about 42% of its all sales. In Europe and U.S. the top major brands sold by Barbara Lynch Gruppo An Entrepreneurial Journey in these states have a fantastic respectable share of market. Barbara Lynch Gruppo An Entrepreneurial Journey, Unilever and DANONE are 2 large markets of food and drinks as well as its primary rivals. In the year 2010, Barbara Lynch Gruppo An Entrepreneurial Journey had actually made its yearly profit by 26% increase due to the fact that of its increased food and drinks sale specifically in cooking things, ice-cream, beverages based on tea, and frozen food. On the other hand, DANONE, due to the increasing costs of shares resulting a boost of 38% in its profits. Barbara Lynch Gruppo An Entrepreneurial Journey Case Study Analysis lowered its sales expense by the adjustment of a new accounting treatment. Unilever has number of staff members about 230,000 and functions in more than 160 nations and its London headquarter. It has actually ended up being the second biggest food and beverage market in the West Europe with a market share of about 8.6% with just a distinction of 0.3 points with Barbara Lynch Gruppo An Entrepreneurial Journey. Unilever shares a market share of about 7.7 with Barbara Lynch Gruppo An Entrepreneurial Journey becoming ranking and very first DANONE as 3rd. Barbara Lynch Gruppo An Entrepreneurial Journey draws in local costumers by its low expense of the product with the local taste of the products preserving its first place in the worldwide market. Barbara Lynch Gruppo An Entrepreneurial Journey company has about 280,000 staff members and functions in more than 197 countries edging its competitors in many regions. Barbara Lynch Gruppo An Entrepreneurial Journey has also decreased its expense of supply by introducing E-marketing in contrast to its rivals.

Note: A brief comparison of Barbara Lynch Gruppo An Entrepreneurial Journey with its close rivals is given up Exhibit C.

SWOT Analysis.

The internal analysis and external of the company likewise can be done through SWOT Analysis, summed up in the Exhibition F.

Strengths.

• Barbara Lynch Gruppo An Entrepreneurial Journey has an experience of about 140 years, enabling business to better carry out, in numerous circumstances.
• Nestlé's has presence in about 86 nations, making it a global leader in Food and Beverage Market.
• Barbara Lynch Gruppo An Entrepreneurial Journey has more than 2000 brands, which increase the circle of its target consumers. These brand names consist of baby foods, animal food, confectionary products, drinks etc. Famous brands of Barbara Lynch Gruppo An Entrepreneurial Journey include; Maggi, Kit-Kat, Nescafe, and so on
• Barbara Lynch Gruppo An Entrepreneurial Journey Case Study Analysis has large quantity of spending on R&D as compare to its competitors, making the company to release more ingenious and healthy items. This innovation supplies the business a high competitive position in long run.
• After adopting its NHW Method, the company has actually done large quantity of mergers and acquisitions which increase the sales growth and improve market position of Barbara Lynch Gruppo An Entrepreneurial Journey.
• Barbara Lynch Gruppo An Entrepreneurial Journey is a widely known brand with high consumer's commitment and brand name recall. This brand name loyalty of consumers increases the chances of simple market adoption of different brand-new brand names of Barbara Lynch Gruppo An Entrepreneurial Journey.
Weaknesses.
• Acquisitions of those company, like; Kraft frozen Pizza organisation can offer a negative signal to Barbara Lynch Gruppo An Entrepreneurial Journey clients about their compromise over their core competency of healthier foods.
• The development I sales as compare to the business's financial investment in NHW Method are quite various. It will take long to change the understanding of people ab out Barbara Lynch Gruppo An Entrepreneurial Journey as a company offering nutritious and healthy products.

Opportunities.

• Introducing more health associated products allows the business to catch the marketplace in which customers are rather mindful about health.
• Developing countries like India and China has largest markets in the world. Thus broadening the marketplace towards establishing countries can enhance the Barbara Lynch Gruppo An Entrepreneurial Journey organisation by increasing sales volume.
• Continue acquisitions and joint ventures increases the market share of the company.
• Increased relationships with schools, hotel chains, restaurants and so on can likewise increase the number of Barbara Lynch Gruppo An Entrepreneurial Journey Case Study Help customers. Teachers can recommend their trainees to acquire Barbara Lynch Gruppo An Entrepreneurial Journey products.

Hazards.

• Economic instability in countries, which are the potential markets for Barbara Lynch Gruppo An Entrepreneurial Journey, can develop several concerns for Barbara Lynch Gruppo An Entrepreneurial Journey.
• Shifting of products from normal to healthier, results in additional costs and can lead to decline business's revenue margins.
• As Barbara Lynch Gruppo An Entrepreneurial Journey has an intricate supply chain, therefore failure of any of the level of supply chain can lead the company to face particular issues.

Division Analysis

Demographic Division

The market segmentation of Barbara Lynch Gruppo An Entrepreneurial Journey Case Study Help is based upon four elements; age, gender, occupation and income. Barbara Lynch Gruppo An Entrepreneurial Journey produces a number of items related to infants i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary products. Barbara Lynch Gruppo An Entrepreneurial Journey items are quite budget-friendly by nearly all levels, however its major targeted clients, in regards to income level are upper and middle middle level clients.

Geographical Segmentation

Geographical segmentation of Barbara Lynch Gruppo An Entrepreneurial Journey Case Study Solution is composed of its existence in almost 86 countries. Its geographical division is based upon two primary aspects i.e. average income level of the customer in addition to the environment of the area. For instance, Singapore Barbara Lynch Gruppo An Entrepreneurial Journey Company's segmentation is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Barbara Lynch Gruppo An Entrepreneurial Journey is based upon the personality and life style of the consumer. For instance, Barbara Lynch Gruppo An Entrepreneurial Journey 3 in 1 Coffee target those consumers whose life style is rather busy and do not have much time.

Behavioral Segmentation

Barbara Lynch Gruppo An Entrepreneurial Journey Case Analysis behavioral segmentation is based upon the mindset knowledge and awareness of the consumer. Its extremely nutritious items target those customers who have a health mindful attitude towards their intakes.

VRIO Analysis

The VRIO analysis of Barbara Lynch Gruppo An Entrepreneurial Journey Business is a broad range analysis offering the organization with an opportunity to acquire a feasible competitive benefit versus its competitors in the food and drink industry, summed up in Display I.

Belongings

The resources utilized by the Barbara Lynch Gruppo An Entrepreneurial Journey business are valuable for the company or not. Such as the resources like finance, human resources, management of operations and specialists in marketing. This are some of the essential important elements of for the recognition of competitive benefit.

Unusual

The important resources made use of by Barbara Lynch Gruppo An Entrepreneurial Journey are costly or even uncommon. , if these resources are frequently found that it would be much easier for the competitors and the new competitors in the industry to easily move in competition.

Replica

The imitation procedure is expensive for the rivals of Barbara Lynch Gruppo An Entrepreneurial Journey Case Solution Business. Nevertheless, it can be done only in 2 various strategies i.e. product duplication which is produced and made by Barbara Lynch Gruppo An Entrepreneurial Journey Business and launching of the substitute of the products with switching cost. This increases the risk of disruption to the current structure of the industry.

Company

This element of VRIO analysis deals with the compatibility of the company to place in the market making productive use of its valuable resources which are hard to imitate. Regularly, the development of management is completely depending on the company's execution strategy and team. Thus, this polishes the abilities of the company by time based upon the decisions made by company for the progression of its tactical capitals.

Quantitative Analysis

R&D Spending as a percentage of sales are decreasing with increasing actual amount of costs shows that the sales are increasing at a higher rate than its R&D spending, and allow the company to more invest in R&D.

Net Earnings Margin is increasing while R&D as a percentage of sales is decreasing. This indicator likewise shows a thumbs-up to the R&D spending, acquisitions and mergers.

Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing debt ratio posture a threat of default of Barbara Lynch Gruppo An Entrepreneurial Journey to its investors and might lead a declining share costs. For that reason, in terms of increasing financial obligation ratio, the firm needs to not spend much on R&D and must pay its present debts to decrease the danger for financiers.

The increasing danger of investors with increasing debt ratio and declining share prices can be observed by huge decrease of EPS of Barbara Lynch Gruppo An Entrepreneurial Journey Case Solution stocks.

The sales growth of company is likewise low as compare to its acquisitions and mergers due to slow perception building of customers. This slow development also impede company to further invest in its acquisitions and mergers.( Barbara Lynch Gruppo An Entrepreneurial Journey, Barbara Lynch Gruppo An Entrepreneurial Journey Financial Reports, 2006-2010).

Keep in mind: All the above analysis is done on the basis of graphs and computations given in the Exhibits D and E.

TWOS Analysis.

2 analysis can be used to obtain different strategies based on the SWOT Analysis offered above. A brief summary of TWOS Analysis is given in Exhibit H.

Methods to exploit Opportunities utilizing Strengths.

Barbara Lynch Gruppo An Entrepreneurial Journey Case Solution needs to present more ingenious items by large amount of R&D Spending and mergers and acquisitions. It could increase the market share of Barbara Lynch Gruppo An Entrepreneurial Journey and increase the earnings margins for the business. It could likewise offer Barbara Lynch Gruppo An Entrepreneurial Journey a long term competitive advantage over its rivals.

The global growth of Barbara Lynch Gruppo An Entrepreneurial Journey should be concentrated on market catching of developing countries by growth, attracting more customers through customer's commitment. As establishing countries are more populated than industrialized nations, it might increase the customer circle of Barbara Lynch Gruppo An Entrepreneurial Journey.

Strategies to Conquer Weak Points to Make Use Of Opportunities.

Barbara Lynch Gruppo An Entrepreneurial Journey Case Solution ought to do cautious acquisition and merger of companies, as it might impact the customer's and society's understandings about Barbara Lynch Gruppo An Entrepreneurial Journey. It should combine and get with those companies which have a market reputation of nutritious and healthy business. It would enhance the understandings of consumers about Barbara Lynch Gruppo An Entrepreneurial Journey.

Barbara Lynch Gruppo An Entrepreneurial Journey ought to not only invest its R&D on innovation, rather than it must also focus on the R&D costs over evaluation of expense of various healthy items. This would increase expense efficiency of its items, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to get rid of risks.

Barbara Lynch Gruppo An Entrepreneurial Journey Case Help ought to relocate to not just establishing however also to developed countries. It should broadens its geographical growth. This large geographical expansion towards developing and developed countries would minimize the threat of possible losses in times of instability in various nations. It should broaden its circle to various nations like Unilever which runs in about 170 plus nations.

Techniques to get rid of weaknesses to prevent dangers.

Barbara Lynch Gruppo An Entrepreneurial Journey Case Solution needs to sensibly control its acquisitions to prevent the risk of mistaken belief from the customers about Barbara Lynch Gruppo An Entrepreneurial Journey. This would not just improve the perception of consumers about Barbara Lynch Gruppo An Entrepreneurial Journey however would likewise increase the sales, revenue margins and market share of Barbara Lynch Gruppo An Entrepreneurial Journey.

Alternatives.

In order to sustain the brand in the market and keep the client undamaged with the brand, there are two alternatives:.

Option: 1.

The Business should invest more on acquisitions than on the R&D.

Pros:.

1. Acquisitions would increase overall properties of the company, increasing the wealth of the company. Costs on R&D would be sunk expense.
2. The company can resell the acquired units in the market, if it stops working to implement its technique. Quantity spend on the R&D might not be revived, and it will be considered entirely sunk expense, if it do not offer possible results.
3. Investing in R&D provide sluggish growth in sales, as it takes very long time to introduce an item. However, acquisitions provide fast results, as it provide the company currently developed product, which can be marketed soon after the acquisition.

Cons:.

1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the business to face misunderstanding of consumers about Barbara Lynch Gruppo An Entrepreneurial Journey core values of nutritious and healthy products.
2. Large spending on acquisitions than R&D would send a signal of business's ineffectiveness of developing ingenious products, and would results in customer's frustration too.
3. Big acquisitions than R&D would extend the product line of the business by the products which are currently present in the market, making company not able to introduce brand-new innovative products.

Alternative: 2

The Company should spend more on its R&D rather than acquisitions.

Pros:

1. It would enable the business to produce more innovative products.
2. It would provide the company a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted customers by presenting those items which can be provided to an entirely new market section.
4. Innovative items will offer long term benefits and high market share in long term.

Cons:

1. It would decrease the earnings margins of the business.
2. In case of failure, the entire spending on R&D would be thought about as sunk expense, and would affect the business at big. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might supply a negative signal to the financiers, and might result I decreasing stock prices.

Alternative 3:

Continue its acquisitions and mergers with substantial spending on in R&D Program.

Pros:

1. It would permit the business to introduce new innovative products with less risk of transforming the spending on R&D into sunk cost.
2. It would offer a favorable signal to the financiers, as the overall possessions of the company would increase with its substantial R&D costs.
3. It would not affect the earnings margins of the company at a big rate as compare to alternative 2.
4. It would supply the company a strong long term market position in regards to the company's overall wealth as well as in terms of ingenious items.

Cons:

1. Risk of conversion of R&D costs into sunk cost, higher than option 1 lower than alternative 2.
2. Risk of misunderstanding about the acquisitions, greater than alternative 2 and lower than alternative 1.
3. Introduction of less variety of innovative products than alternative 2 and high variety of innovative products than alternative 1.

Suggestion

With the deep analysis of the above options, it is recommended that the business ought to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not only present new and innovative products in the market it would also minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share rates also, as financiers want to invest more in business with considerable R&D spending and increase in the overall worth of the business.

Action and execution Method

Technique can be executed effectively by establishing particular short term as well as long term plans. These strategies might be as follows;

Short Term Strategy (0-1 year).

• Under the short term plan Barbara Lynch Gruppo An Entrepreneurial Journey Case Solution need to carry out numerous activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which generate the majority of its earnings.
• Examine the existing target audience along with the marketplace section which is not include in the business's circle.
• Analyze the existing financial data to determine the amount that needs to be spent on the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early revenues (dividend). It would let the company to know that how much amount must be spent on R&D.

Mid Term Plan (1-5 years).

• Obtain those organizations in which the business has potential experience to deal with. Obtain most beneficial organizations with a strong dedication to health, to develop the consumer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Barbara Lynch Gruppo An Entrepreneurial Journey values and vision and to prevent potential danger of sunk expense.

Long Term Plan (1-10 years).

• Obtain organizations with health along with taste factor, as the base for the Barbara Lynch Gruppo An Entrepreneurial Journey as a business producing healthy items has been built under midterm strategy and now the company might move towards taste element also to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop new products.

Conclusion.

Barbara Lynch Gruppo An Entrepreneurial Journey Case Analysis has actually developed significant market share and brand identity in the urban markets, it is suggested that the business must focus on the rural locations in terms of establishing brand loyalty, equity, and awareness, such can be done by developing a specific brand allocation strategy through trade marketing techniques, that draw clear difference between Barbara Lynch Gruppo An Entrepreneurial Journey products and other competitor products. This will permit the company to develop brand equity for recently presented and already produced products on a higher platform, making the reliable usage of resources and brand image in the market.