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September 29, 2014

France Digital Spending accounts for 19% of total media spends

  1. Digital Spending in France grew by 22% from US$2.49 billion  in 2011  to US$ 4.4 billion  by the end of 2013. This accounts  for 19% of total advertising  across media.

  2. During 2009-2013, online advertising in the country has increased at a CAGR of 9.3%. This growth is expected to continue in 2014 with brands expected to spend US$4.8 billion, representing an increase of 8.5% over 2013.

  3. In France  online advertising is led by  Display advertising growth (+3%) video advertising which saw  exploding growth of the online video ad format (+34% representing €68 million in H1 2013, or 18% of the Display market). 

  4. The rise of the RTB buying model (+121% representing €57 million in H1 2013, or 15% of the Display market.

  5. French Companies spends a larger part of its  digital budget over the next three years on customer service (19% versus global average of 16%). French companies also spend the highest percentage of their functional digital budget on R&D – (21%), a figure it shares with the much-bigger Australia.

September 28, 2014

The Google Story Turns 16 Today :

Google turns 16 today , celebrates by having a Google Doodle

  1. Google turned  sixteen  today  ( 27th September )it celebrates 16 years of " being the search giant that continues maintain 82% search engine share apart from having snatched the Mobile OS market by it Android Platform that currently has more than 50% of global share.Google registered their domain name today
  2. Google began in March 1998 as a research project by Larry Page and Sergey Brin, Ph.D. students at Stanford University.Google was born when during their dissertation theme as  Larry Page and Sergie brin started exploring  the mathematical properties of the World Wide Web, understanding its link structure as a huge graph.In his research project, nicknamed "BackRub",
  3. Together while working for their project they discovered that each page from a web site a a back link of another link. And these links are one of the foundations on which a web page is considered how valuable these pages are. They convert the backlink data that it gathered for a given web page into a measure of importance, Brin and Page developed the PageRank algorithm.
  4. The first patent filed under the name "Google Inc." was filed on August 31, 1999. Today Google is worth $16billion  and  has almost a monopoly in the US market with 100billion searches monthy . The company has moved beyond the search engine and has become one of the most innovative companies in the world, inventing Android phones, Google Glass, and driverless cars. The rest as they say is History.

September 26, 2014

Forecasting Marketing Growth and Revenues For Starbucks

 The most three important indicators while forecasting market share and  revenues are

1) value of the company : sum of values of its division ( Starbucks owned + franchise owned +cash -debt )
2) Marco economic factors : a)global food /commodities price b)Consumer spends in that category
3)  Micro economic factors : No of  daily customers / share of wallet/ store opening

  • The value of a company is the sum of the values of its divisions, plus cash, minus debt. Out of this the company operated stores( owned by Starbucks ) make 60% of its stock price. According to Tefris Food, Coffee Bean & Merchandise Spend per Customer Visit for Starbucks is set to increase annually at a rate of 1.5-2.0% With food-at-home inflation higher than food-away-inflation, a general 2-4% increase in the menu prices per year is essential to main profitability
  • One of the indicators in this kind of a business is the consumer spending (  share of wallet  on Food and Beverages, which  has been almost flat in  2013. T hovering between $4.15 to $4.50. However spends on beverages declined  0.25% from 2009 to 2012. In the future the average spend per consumer  is set to declines as the newer outlets are being opened in areas with low purchasing power. The  Starbucks owned stores have been declining in the last 4-5 years and in 2013 store count was at  9,800, increasing 6% over the previous year. 
  • The Number of Daily Customers per Store has witnessed a rapid growth in the last three years. In 2011, the number surged to 517.In 2012 it  rose to 563. In 2013, the average number of daily customers jumped 5% to 591, helped by the addition of baked products to the menu. According to estimates the number of Daily Customers per Store to grow at a more moderate rate of 4-5% annually.

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