Nestea Brand Management Project

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A presentation created by my team for the Integrated Project at Boston University

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  • Establish base year financial statementsUnderstand company structureSuch as: limitations on marketing budget, how much can spend on product developmentModel the budgetUnderstanding company from the inside, get marginsHow much are we actually spending on the products and where we can improveProject financial statements going forwardEstimate company valueBased on actual management decisions
  • What does the budget look like for the base year?Contribution marginsWe are making money, but fixed costs inherited from previous years when sales were high are dragging the company down, and the operating margins are shrinkingBut still profitable, if barelyCreate forward budget based onMarkingProduct developmentAnd other operations decisionResultsContribution margins roseOperating margins are significantly higherExplain graphInitial take over year sales rose, reinvesting back into the companySecond year, again a lot of reinvestments back into the company, we introduced two new line items (Gallon, Partea box)Sales steady growth (62%), most importantly NI also grew significantly, by 190% ROE
  • NPV under new management, mention oldHow certain are we – ran 10k simulation under numerous variablesMERangeSensitivityIndustry growth – cash cow product influenced heavily by the industryNew products make a significant contributionInteresting to note Special box not mean to generate sales by itself, but rather establish brand awareness and reinforce sales of other, more profitable itemsAs there is more uncertainty in the market, risk-free investments become more appealing, which has a marginal affect on NPV and we accounted for that
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